- May 12, 2009
REPORT: Obama administration slashes Chrysler ad budget by 50%
Chrysler Marketing and Sales Vice President Steven Landry defended the decision to spend on advertising during the bankruptcy saying that the move "gives us the opportunity to reinforce that it's business as usual and demonstrate a bright future ahead for Chrysler." One commenter on Advertising Age took "business as usual" as a bad thing, as that mentality lead to "cars no one wanted to buy, zero innovation, outdated labor practices and a lot of taxpayer money thrown in to keep a sinking ship from going under."
Auto research site Edmunds.com told AdAge that the campaign appeared to be working for the first five days, saying interest on its consumer auto search site jumped by 15%. Interest in Chrysler vehicles dropped back to pre-bankruptcy levels after that, though. One dealer told AdAge that the only added interest appears to be from would-be buyers trying to "low ball" to see if dealers will take next to nothing just to liquify assets.
Chrysler's ad campaign during Chapter 11 consists of two corporate branding spots that touts Chrysler's wares and explains the Fiat situation. The other three spots are product ads for the Jeep Grand Cherokee, Dodge Grand Caravan, and Chrysler Town & Country.
[Source: Advertising Age]