Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

GM marketing spend will return to normal levels post pandemic

04/12/2021 | 03:13pm EDT
FILE PHOTO: Logo of GM atop the company headquarters

DETROIT (Reuters) -General Motors Co's marketing and promotional spending will return to normal levels after the COVID-19 pandemic caused that budget to drop last year, the U.S. automaker's top marketing officer said on Monday.

"What we went through in the pandemic was certainly severe and we should be moving back up to our normalized levels," GM Chief Marketing Officer Deborah Wahl said in an online appearance at a Reuters Events conference.

Wahl declined to discuss how much GM will spend this year, but GM cut its advertising and promotional spending last year by about $1 billion to $2.7 billion according to the Detroit company's annual report.

The pandemic forced the shutdown of the U.S. auto sector for two months last year, and the subsequent global chip shortage has led to further idling of plants, causing vehicle inventories to shrink. That has led to higher prices for both new and used cars, dealers said at the conference.

"The inventories are working for us," AutoNation Inc executive vice president Marc Cannon said, adding that pricing has risen as supply has shrunk.

Cannon, who heads customer service at the largest public U.S. dealer, also cited a "whole new attitude" for consumers as they accept the higher prices and they are willing to make compromises or wait longer for vehicles.

Carvana Chief Executive Ernie Garcia said his company, which sells used vehicles online, has unlocked a different business model that allows lower cost and more availability and diversity of vehicle models compared to traditional dealers with brick-and-mortar operations.

Carvana's online model and technology could enable it to expand into other services, Garcia said, but for now the company remains focused on its core business.

CarMax Inc CEO Bill Nash said digital sales are a growing business with about 75% of its customers doing some of the deal online, but the used-car dealer is finding consumers coming back to the stores as the pandemic eases.

In a separate appearance at the conference, Ford Motor Co's chief customer experience officer, Elena Ford, said the No. 2 U.S. automaker has pushed to deepen relationships with its retail and commercial customers post COVID-19.

"As people venture back out, we have a real opportunity to re-imagine the entire experience our customers have," she said.

Sonic Automotive Inc President Jeff Dyke and other dealers said the key will be using technology and better online tools to offer both the in-dealer and online shopping experience consumers want.

"Customers want individualized experiences and technology is going to lead to that," Dyke said.

GM's Wahl also said the No. 1 U.S. automaker will offer a third-party app that delivers in-vehicle navigation capability to about 900,000 vehicles that lack the feature.

The Maps+ app, from Mapbox, will begin the rollout on certain 2018 and newer models on April 30 to customers with select connected services plans, GM said.

(Additional reporting by Paul Lienert in Detroit and Tina Bellon in Austin, TexasEditing by Chizu Nomiyama and Nick Zieminski)

By Ben Klayman

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AUTONATION, INC. 2.40% 106.89 Delayed Quote.49.56%
CARMAX, INC. -5.52% 130.29 Delayed Quote.45.99%
CARVANA CO. -6.12% 263.45 Delayed Quote.17.15%
FORD MOTOR COMPANY 1.12% 11.74 Delayed Quote.32.08%
GENERAL MOTORS COMPANY 1.98% 58.72 Delayed Quote.38.28%
SONIC AUTOMOTIVE, INC. 0.91% 52.37 Delayed Quote.34.56%
Latest news "Economy & Forex"
05:40pUtilities Up On Defensive Demand Ahead Of Jobs Report -- Utilities Roundup
05:38pCommunications Services Up On Deal Activity -- Communications Services Roundup
05:36pTech Up As Rotation Out Of Sector Slows -- Tech Roundup
05:33pFinancials Up Sharply On Growth, Treasury Yield Outlook -- Financials Roundup
05:29pConsumer Cos Up On Volatile Session, Amid Inflation, Overheating Concerns -- Consumer Roundup
05:27pTSX falls 0.1% to 19,290.98
05:27pMAPPING OUT MOBILITY IN CAP-HAÏTIEN : A successful building-block approach!
05:27pSomalia's Businesses Tap Solar Energy to Expand, Boosting Economic Growth
05:25pSquare Raises 2021 Expense Guidance
05:24pWall Street's worries shift away from the pandemic - Fed survey
Latest news "Economy & Forex"