GM ends nine-year endorsement deal with Tiger Woods

csv8 · 25-11-2008, 06:14 PM

GM ends nine-year endorsement deal with Tiger Woods

Woods, a global icon in sports with his 14 major championships, has been carrying the ' logo on his golf bag for the last nine years and still had one year left on his contract.

But General Motors Corp. was looking to cut costs and hoard cash while trying to survive the worst sales downturn in a quarter-century. And it said Monday the world's No. 1 golfer wanted more time for himself, especially with a second child on the way.

"Timing is everything," said Larry Peck, golf marketing manager for Buick. "We've had such a great partnership with Tiger. It's hard for us to walk away from that. But this frees up time for him. And it sure frees up a lot of money for us."

The endorsement deal, believed to be worth at least US$7 million a year, was to expire at the end of 2009.

Woods has endorsed GM products around the world and mainly has been seen in Buick commercials as the company tried to give the nameplate a more youthful image. Peck said during the launch a few years ago of the Enclave, its research showed that 78 per cent of consumers who bought the SUV previously had not been Buick owners.

"We attribute awareness of our product to Tiger," he said.

GM has been making dramatic cuts in advertising as it tries to conserve cash. The nation's largest automaker spent nearly $7 billion more than it took in last quarter and has warned that without federal help, it may reach the minimum amount of cash required to run the company by the end of the year.

Lion Slayer · 25-11-2008, 07:45 PM

GM probably need every bit of money they can get right now, and Tiger will probably find a quick replacement as i'm sure many companys would love to use his name to sell their product.