Obama Cuts Chrysler's Ad Budget

As we have seen in our previous reports, Chrysler has put its main advertising partner, BBDO Detroit to work for the creation of the company's new image. Even if such a move under bankruptcy might be considered a stretch, it's not the campaign itself that troubled the waters.

Chrysler planned to spend no less than $134 million on the campaign. Well, actually, they will spend less. About 50 percent less, as the Obama administration will not allow the bankrupt manufacturer to spend more than half of that amount.

According to Court papers, the administration understands that advertising is a necessary expense, Autonews reported, but Chrysler doesn't need to spend that much for the nine weeks campaign.

According to court transcripts, judge Arthur Gonzalez asked Robert Manzo, executive director of Capstone Advisory Group and a consultant to Chrysler: "Idle plants; why market?".

The advisor answered "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."

As we reported, the main focus of the campaign is not clear even to its creators. The company wants to reassure consumers that "it's business as usual", despite the fact that "We're building a new car company".

Do they need the campaign? Given the fact that what awaits us at the end of the bankruptcy process is hard to determine, no answer can be given to that question. One thing is sure. Chrysler as we knew it is dead and so are the infamous Detroit Three. So, business as usual, huh?