Filed under: Hybrids/Alternative, Green, Marketing/Advertising, Chevrolet, GM
GM breaking up with Big Oil in new commercial
by Jonathon Ramsey on Jun 10th 2008 at 5:23PM 
General Motors is apparently serious about it's green push and will be launching a new commercial later this month to show off its environmental intentions. The spot, created by McCann-Erickson, is GM's televised Dear John letter to Big Oil that begins by saying, "We've had this great relationship for many years. We think we will both be a lot happier and healthier if we see less of each other."
That spot will be bolstered by a Chevrolet green campaign and sponsorship during the Olympics that highlights GM's coming enviro-friendly tech. While the commercial is more than a little cheeky and unrealistic, when a major automaker even pretends to say goodbye to Big Oil, on national television no less, you know that things could truly be moving on.
[Source: Automotive News, sub req'd]
Reader Comments (Page 1 of 2)
Pete 5:29PM (6/10/2008)
I think they most def have a few reasons to be pissed off at big oil...
Despite a documented history of blowing their exorbitant profits on outlandish executive salaries and stock buybacks, and hoarding their bounty by avoiding technologies, policies and legislation that would protect the population and environment and lower fuel costs, Big Oil insists on transferring all of that responsibility on the auto companies.
- Jason Vines, Chrysler PR
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Goat Law 6:57PM (6/10/2008)
Please tell me you are trying to be humorous or sarcastic. Oil companies don't blow their exorbitant profits on executive salaries and hoarding bounty.
1st - Oil companies make very average profits as compared to both returns and capital. The only reason they make so much money in total, is because they are so large, which is necessitated by the large economies of scale present in the oil industry.
2nd - If any executive deserves to be paid well, it is one that performs well, and the oil companies executives have performed very well.
3rd - Oil companies are responsible for enormous advances to technology in the enegery sector; however, they aren't going to invest in something that isn't profitable. Profit is the sole mission of any corporation, for a corporation is simply a fictitious entity made up of many shareholders who gave the company money, in return for a share of the company, so that the company could earn them money. If you don't like corporations or profit, North Korea would welcome you with open arms, or maybe a gunshot.
4th - Big Oil has no responsibility to anyone but its shareholders. If it took on any other responsibility it would be in violation of the laws of the United States. If the government wants to change the rules by which Big Oil must play, then it is free to do so, but until then Big Oil's only motive must be profit, or they will be breaching their duty to their shareholders.
why not the LS2LS7? 7:15PM (6/10/2008)
Oil companies make enormous, including net profits, for a commodity industry. Do you think corn farmers make as much net profit as an oil company?
A relative of mine worked for BP/Amoco. He made a ton of money just on speculation. He kept hundreds of thousands, the company itself made a ton more. This was not production, merely buying so you can sell.
Where do you think that money came from? Right out of our pockets.
Later his group was indicted for trying to corner the market on natural gas.
Yeah, big oil are saints.
ALEXDB9 5:30PM (6/10/2008)
Riiiiight.
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Rafer 5:39PM (6/10/2008)
Its a start...
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OubelhaNegra 5:41PM (6/10/2008)
We hope all the automakers do the same and this will not be just a tv spot.
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Todd 5:41PM (6/10/2008)
Are the ads an admission of collusion?
If they're serious, they'll publish the sales receipt that gave Exxon all the right to kill off the EV-1s battery. I won't hold my breath.
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Joe 5:52AM (6/11/2008)
All I have to say is that you must be awfully dumb not to understand why the EV-1 did not continue to be manufactured. Some people can not understand good reasoning.
Blake 5:42PM (6/10/2008)
Funny, considering GM was responsible for the buyout and destruction of most commuter rail systems, replacing them with GM buses and making suburbia entirely dependant on automobiles and big oil.
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Pete 5:55PM (6/10/2008)
It was what the consumer wanted at that time...
Hindsight is 20/20
Don't even try to bring up the argument of, "Well in Europe..."
That is crap...
DKB_SATX 6:01PM (6/10/2008)
Pete: It's not so much that the argument is crap as that it's applied too generally. The northeast is somewhat similar to Europe (though still significantly less densely populated) and commuter rail has held on in many places there. It's just not applicable in most of the rest of the country because the population is too scattered.
jg 5:43PM (6/10/2008)
The oil lobby versus the Detroit Big 3 lobby. This could get ugly.
'Big Oil insists on transferring all of that responsibility on the auto companies.'
Has anyone whose family has made a killing in the auto industry been president lately? No? Well then now you know why the oil industry is successful in transferring the responsibility. Do you realize how much the oil industry receives in the form of tax breaks and subsidies? They are making money hand over fist, without the expense of investing in plant and equipment, and we're giving them tax breaks. We're giving them billions to research alternative fuels. Why are we paying them to do what they need to do to stay in business? Why, when they are making record profits? If they were hurting I would still be against it but there would at least be a sensible argument to be made in favor.
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Rick 6:44PM (6/10/2008)
And all of your (Autoblog visitors) thoughts on todays move by certain senators to protect the oil subsidies and not tax them, in the face of record profits?
Scorch 8:05PM (6/10/2008)
It isn't for lack of tax breaks and subsidies that the Big 3 is in trouble, they are in trouble because they have a bad business model and were just plain beaten by the Japanese in terms of quality and desirability of their cars. It doesn't help that the UAW continues to bleed them dry. They could take a lesson from foreign car manufacturers and build cars in the South to try to avoid the unions.
I own a Tahoe and I want the domestic manufacturers to do well but they have to make cars that I want to buy. I feel that they are doing much better.
I also work in the oil industry and feel that people simply don't understand the economies of scale involved in the oil industry. Yes, $40 billion seems like a huge profit and it is but you have to consider that they spent around $440 billion last year to make that money. Those profit margins are certainly not unreasonable, especially when you consider that the profit margin on Apple products is around 50%. Democrats know (or should know) that taxing oil companies into the ground will discourage domestic oil production and have no impact on gas prices but they are simply grandstanding to a constituency that doesn't understand the complexities of the oil industry.
jg 9:57PM (6/10/2008)
'I also work in the oil industry and feel that people simply don't understand the economies of scale involved in the oil industry.'
Correction economies of scale of the vertically inegrated oil industry.
'Yes, $40 billion seems like a huge profit and it is but you have to consider that they spent around $440 billion last year to make that money'
They did not. The price of oil went up. So did profits. Its called a windfall. The same amount of work produced higher profit. If the profit was the result of investment there would be no talk of windfall taxes since the money is already flowing back into the economy. But there is no new investment. The money is not flowing into the economy. And gas prices are rising. Why are they raising prices and taking in record profit?
'Democrats know (or should know) that taxing oil companies into the ground will discourage domestic oil production and have no impact on gas prices but they are simply grandstanding to a constituency that doesn't understand the complexities of the oil industry.'
'Democrats' and 'tax...into the ground'. Well played. 'Grandstanding' too, nice one. And the all time favorite, it's too complex for regular folk. You've argued for right wing friendly industries before haven't you?
'It isn't for lack of tax breaks and subsidies that the Big 3 is in trouble, '
I certainly wasn't arguing for more tax breaks or subsidies. Sorry if that's how it appears. I was arguing against any industry receiving tax breaks when profitable and certainly they shouldn't get tax payer money for R&D.
BULL 6:13PM (6/10/2008)
This is so dumb I don't know where to start with it. Oil is such a multi-faceted part of our daily lives that it is absurd to think we are just going to walk away from it. We are swimming in oil, it is very economical compared to any alternate source (if there is one), and it is plain stupid to think I am going to buy a GM product because of this ad campaign.
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TBlueMax 6:14PM (6/10/2008)
Good luck GM... seriously, good luck.
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Silver 6:21PM (6/10/2008)
Wait, the automaker who, more than any other, put all its eggs in the gas-guzzler basket (and reaped easy money from it) now has "environmental intentions?"
Uh huh. We'll see if they walk as well as they talk.
As far as brand image though, it will be awhile before I can respect the entity responsible for the Hummer and the Escalade, two of the most ridiculous vehicles ever created.
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ed 6:51PM (6/10/2008)
Bring the out the Volt! Bring out City/Urban cars, Diesel Engines more Hatchbacks, consumers need to get more educated when buying cars (case in point Spain Chevy website they ask you to pick 'real or unreal' here is the link http://www.chevrolet.es/. America is ready GM!
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Blake 7:01PM (6/10/2008)
That Chevy Aveo looks pretty nice...