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The recession in the auto industry is also affecting other major industries. Media is one of these industries that will have to suffer huge losses soon. The new restructuring plans that were announced by the Detroit's big three automakers have revealed that they will be reducing different advertising brands and dealers. This step has come in order to win financial help from the Congress.Restructuring plans signaled that the advertising industry have bad days ahead. In its restructuring plan, GM has indicated that the famous Saab brand would be sold or closed soon. Whereas, on the brand Saturn, the speculations ar
e going on. Presenting the plan on 03rd Nov, 2008, GM has requested Congress to approve auto loans up to $12 billion as soon as possible. The dropping of Saturn is being taken as a complete surprise by the auto industry. But if GM is to be believed, it is looking for ''alternatives'' for Saturn.According to latest automotive industry news, different ad agencies like Interpublic Group (IPG), Omnicom Group (OMC), etc. till now received 14% of sales from the auto industry. Now, if brand reductions are new plans of the automakers, media industry especially advertising agencies will surely have major impact on their revenue.
2 comments:
Things are hard to understand for most people, and infact its a negative catalyst of our economy. The fact is that there is money out there from the bailouts that we all can have! I've been doing some research, and there's more grants and lower APR's out there now than before. Bailout is for you too!
That's right. Lets see what does this bailout has in store for the auto industry in the days to come.
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