General Motors plans radical cutbacks after drop in sales

NEW YORK - General Motors is to reduce its marketing spend, as part of a radical response to a drop in US sales, including job cuts and asset sales.

The details of the plan, announced by the company yesterday, centred on General Motors US business, which includes brands such as Cadillac and Pontiac.

Its European operations, which include the Vauxhall/Opel brands, are believed to be relatively unaffected.

The company said it was suspending dividend payments and attempting to cut 20% of its salaried staff costs.

GM also wants to sell as much as $4bn of assets. The company's Hummer section is believed to be the most-likely brand to be disposed of first.

GM was short on detail as to how much it would reduce its marketing spend and how, simply saying that it planned to "reduce and consolidate sales and marketing budgets, with a focus on protecting launch products and brand advertising".

However, it has emerged that its sponsorship of motorsports and in particular the stock car racing series is likely to be reduced.

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