General Motors has pulled approximately $50 million in TV network advertising for the second quarter, according to one analyst with knowledge of the number.
GM and most advertisers who buy in the upfront marketplace have the option to pull 50% of their spending commitment in the second quarter. GM exercised that option, after projecting a fall off in the number of vehicles it will sell this year to between 16 million and 16.5 million, versus the record 17.5 million vehicles sold in 2000.
GM confirmed "some reductions" in its national TV ad spending, but declined to discuss specifics.
Analysts expect DaimlerChrysler to follow suit, in light of its move earlier this week to slash 26,000 jobs from its workforce. Companies in the telecom sector are also said to be exercising their second quarter options. - Steve McClellan