Dan Ammann

Chevy Volt May Sales Dismal - Ad Spending Ineffective

General Motors reported that Chevy Volt sales for May came in at a paltry 1,680. To put this in perspective, GM sold 29,579 Chevy Malibus during the month. The funny thing is, I do not recall seeing as many TV ads for the Malibu as I have for the Volt. While GM's ad strategy (which has seen the company discontinuing advertising on Facebook and the Super Bowl) has received much attention, auto journalists and analysts do not seem to want to question the reason why GM is spending such a disproportionate amount of money advertising a vehicle that is losing money for the company and its shareholders.

Was GM’s Nepotistic Ad Spending More Effective than Facebook?

The Detroit Free Press reported on Friday that General Motors failed to initially disclose possible conflicts when it awarded a $600,000 contract to Mother New York, an ad agency with ties to GM's Chief Financial Officer, Dan Ammann. Ammann's wife, Pernilla Ammann, is a partner and Chief Operating Officer at the ad agency. In typical Government Motors' fashion, Ammann dubiously denies having had knowledge of the deal. Before looking at what the money purchased, let's look at the likelihood that Ammann really knew nothing.

More Management Instability at GM as CFO Leaves

General Motors announced today that its Chief Financial Officer, Chris Liddell, will be leaving the company on April 1st. GM shares hit a new low of $30.95 on the news. Mr. Liddell joined GM in January of 2010. Having served for over a year, Liddell has exceeded the average stay of top executives at GM. GM has gone through three CEOs since they emerged from bankruptcy in June of 2009.

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