News Summary: GM ads do little to help sales

Published July 31, 2012 10:13pm ET



THE PROBLEM: General Motors’ advertising hasn’t done much to boost the company’s sales, despite the automaker spending more than $4 billion per year.

THE NUMBERS: GM sales rose just 4 percent in the first half of the year, lagging the 15 percent gain for the industry. The growth is paltry compared with increases of more than 30 percent at brands like Volkswagen and Chrysler. GM’s share of the U.S. market has dropped almost two points in the past year to 18.1 percent.

THE OUTLOOK: GM has dismissed its global marketing chief, although it says the ad campaigns weren’t the reason. Experts say the company needs to emphasize in future ads that its cars and trucks are much better than they were in past years.