It has recently been revealed that a $600,000 transaction was made to a GM subsidiary last year without following all required procedures.
The transaction was to pay for services completed by advertising agency Mother New York, where Pernilla Amman, GM Chief Financial Officer Dan Ammann’s wife, is a partner. GM says it was unaware of the relationship, at the time, as it was left out of the original presentation at GM’s annual meeting last June.
After the transaction was completed, however, the CEO and general counsel deemed the transaction appropriate, or ‘properly ratified’, according to GM’s guidelines.
According Kantar Media’s head of research Jon Swallen, the company spent $1.8 billion on advertising last year, only exceeded by Procter &Gamble, Co. and AT&T. Currently, GM’s Chief Marketing Officer Joel Ewanick is seeking to improve both Cadillac and Chevrolet’s marketing strategies to bring them worldwide.
In the past, GM has used Aegis Group PLc’s Carat to handle its media buying and planning, and 70 agencies globally, but this is all changing with the brand’s new ad company Commonwealth.
– By: Alexandra Koken
Source: Automotive News