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Task force chops Chrysler ad budget

by Bill Cawthon on

President Obama’s auto task force flexed its muscle by cutting in half the $134 million Chrysler wanted to spend on advertising during its bankruptcy proceedings.

While they did chop the budget, the task force understood the need for advertising, which put them ahead of Judge Arthur Gonzalez who said: “Idle plants; why market?”

Robert Manzo, executive director of Capstone Advisory Group, who was testifying in the case, responded, “Advertising and marketing dollars are critical to make sure the right message is out there about Chrysler, what’s happening to Chrysler during this interim period and why Chrysler will be a brand going forward that is one that a consumer should continue to look at as one of their purchase opportunities.”

There’s also the matter of thousands of unsold Chrysler, Dodge and Jeep vehicles on dealer lots and in Chrysler’s inventory. The automaker is hoping the two-month plant furlough will bring those numbers down.

Bill Cawthon grew up in the auto industry in the 1950s. His Dad worked for Chrysler and Bill spent a number of Saturdays down on the plant floor at Dodge Main in Hamtramck. Bill is also the U.S. market correspondent for just-auto.com, a British auto industry publication, and a member of the Texas Auto Writers Association, which has named the Jeep Grand Cherokee the “SUV of Texas” several times and named the Ram 1500 as the “Truck of Texas” two years running.

Bill has owned five Plymouths (including the only 1962 “Texan”), one Dodge and one Chrysler and is still trying to figure out how to justify a Wrangler. He also has owned at least one of every 1:87 scale model of a Chrysler product. You can reach him directly at (206) 888-7324 or by using the form.


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