Chrysler wanted to spend $134 million in advertising over the nine weeks it’s in bankruptcy, however the Obama auto-industry task force gave it only half that. This is to be expected, as we have reported earlier that Chrysler owes Ad Agency BBDO $58,000,000. Omnicom Group is listed as it’s second largest creditor…. See this is our problem now, as it was last month when we published this story.
It’s worth noting, when your second largest creditor is your ad agency, exactly what was Chrysler spending their money on… seriously… like this company spent everything they had on advertising… and nothing on R&D …. no wonder they are where they are… in bankruptcy.
The Federal Government viewed at least half of Chrysler’s advertising budget as a waste of money, hence why it denied it… and honestly despite being in the advertising industry.. it’s hard to validate the entire sum in light of the cash crunch and the fact it is in bankruptcy.
The problem is people, when you are on government dollars, you are going to have to expect government results…. and the fact is that government feels that advertising isn’t a priority, payroll is.
You think this is bad, wait until the banks that have taken TARP money want to review their advertising budgets… because you are smoking crack if you think this is the last time this will happen.
Enjoy the new reality.