• Sign in to follow this  
    Followers 0

    Whistle-Blower To Have Cause The Departure Of Joel Ewanick


    William Maley

    Staff Writer - CheersandGears.com

    August 8, 2012

    Last week, we reported on the departure of GM's global marketing chief, Joel Ewanick. The reason given out at the time was Ewanick not meeting up to expectations. A day after his departure, a report from Bloomberg said Ewanick's departure was due to a review of a recent sponsorship agreement that didn't meet company policy.

    A week later, a new report from Bloomberg sheds some more light on why Ewanick was kicked out.

    The recent sponsorship agreement in question was a partnership between Chevrolet and U.K. soccer team Manchester United. The agreement, lasting till 2021, would have GM shelling out $18.6 million for this and next year, rising to roughly $70 million in 2014, and increasing 2.1% after that. Total cost of the deal: $559 million.

    This would have been ok if Ewanick hadn't spread the cost out to other marketing budgets and disclosing a price that was much less than the $559 million.

    A source tells Bloomberg that a whistle-blower came forward questioning certain aspects of the agreement between GM and Manchester United. An internal investigation was launched and found that the total cost was much higher and hidden in other budgets. Ewanick denied he was hiding anything about the deal during the investigation, but that soon unraveled. Ewanick's resignation was announced on July 29th.

    Source: Bloomberg

    William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

    0


      Report Article
    Sign in to follow this  
    Followers 0


    User Feedback


    There is always value in transparency, but many companies value results more. This was such a long term contract that Ewanick was sure to be gone before results came in on this program regardless if he resigned now or was fired 2 years from now for example.

    0

    Share this comment


    Link to comment
    Share on other sites

    I think we also need to Question the value period for the contract full term length. This is such an outragous price for marketing that anyone with a reasonable head would have to question the cost.

    Sounds like GM did the right thing and I hope the next company that hires him will question if they want a man doing their marketing that will play this kind of games.

    As a stock holder, I would be exploding if mgmt was doing this. This is what old days GM would have done. Todays New GM needs to be better than this.

    0

    Share this comment


    Link to comment
    Share on other sites


    Your content will need to be approved by a moderator

    Guest
    You are commenting as a guest. If you have an account, please sign in.
    Add a comment...

    ×   You have pasted content with formatting.   Remove formatting

    ×   Your link has been automatically embedded.   Display as a link instead

    Loading...



  • Popular Stories

  • Similar Content

    • By dfelt
      G. David Felt
      Staff Writer Alternative Energy - www.CheersandGears.com
       
      Europe's 400 Ultra-Fast Charging Network by 2020

      Europe like America has the 3 basic charging standards in play in their fragile network of 2016. These is what we know as the 110, 220 and 440, level 1, 2 and 3 chargers. Yet Europe is not standing by waiting for Tesla or American Auto companies to drive EV auto's. Instead Europe has built the following consortium of Auto companies who have all chosen to contribute an equal amount to building the next generation charger network. VW, GM, BMW, Daimler, FORD, FCA, Hyundai, Volvo and Jaguar Land Rover have choosen to build 400 locations over the next 3 years that will sense and charge up to 350 kW in the period of a quick Coffee break. This is significantly faster and higher than the Tesla 120kW fast charging system. The goal by the European Government is to offer road trip worthy auto's with fast charging to bring less noise and cleaner air to European cities by 2020 and to make the bulk of inner city auto's EV's within 10 years of the fast charging system going live, so by 2030.

      Diamler is wanting to lead the European charge with their 300+ kilometer EV-CUV

      This would seem to show that Tesla has had the desired effect of making a market changing revolution of how companies and governments see the future of transportation.
      Source PM
    • By William Maley
      As sales of compacts and sport cars begin declining, automakers are faced with tough decisions as to what in terms of production and workers. General Motors made the difficult decision to lay off 2,000 workers at two plants.
      Bloomberg reports that GM will be cutting the third shift at their Lansing Grand River plant in Michigan (home to Cadillac ATS, CTS, and Chevrolet Camaro) and a shift at Lordstown, Ohio plant (home to the Chevrolet Cruze). GM spokesman Tom Wickham said the company is treating the layoffs as permanent, although some workers will be able to transfer to other plants.
      The layoffs are due to sales of compact and sports cars going down due to consumers buying more crossovers. Sales of the Chevrolet Cruze dropped 20 percent through October, while the Camaro has seen a drop of 9 percent.
      On the same day, General Motors announced a $900 million investment for three plants - Toledo Transmission Operations, Bedford Casting Operations in Indiana, and Lansing Grand River. Wickham said this investment would not add any new jobs.
      Source: Bloomberg, General Motors
      Press Release is on Page 2


      General Motors today announced initiatives to strengthen and align its production output at key U.S. manufacturing operations. The plans include investing more than $900 million in three facilities — Toledo Transmission Operations in Ohio, Lansing Grand River in Michigan and Bedford Casting Operations in Indiana —  to prepare the facilities for future product programs.
      GM also announced plans to align production output with demand for cars built at the Lordstown, Ohio, and Lansing Grand River, Michigan, assembly plants. As the customer shift from cars to crossovers and trucks is projected to continue, GM will suspend the third shift of production at both facilities in the first quarter of 2017. 

      View full article
    • By William Maley
      As sales of compacts and sport cars begin declining, automakers are faced with tough decisions as to what in terms of production and workers. General Motors made the difficult decision to lay off 2,000 workers at two plants.
      Bloomberg reports that GM will be cutting the third shift at their Lansing Grand River plant in Michigan (home to Cadillac ATS, CTS, and Chevrolet Camaro) and a shift at Lordstown, Ohio plant (home to the Chevrolet Cruze). GM spokesman Tom Wickham said the company is treating the layoffs as permanent, although some workers will be able to transfer to other plants.
      The layoffs are due to sales of compact and sports cars going down due to consumers buying more crossovers. Sales of the Chevrolet Cruze dropped 20 percent through October, while the Camaro has seen a drop of 9 percent.
      On the same day, General Motors announced a $900 million investment for three plants - Toledo Transmission Operations, Bedford Casting Operations in Indiana, and Lansing Grand River. Wickham said this investment would not add any new jobs.
      Source: Bloomberg, General Motors
      Press Release is on Page 2


      General Motors today announced initiatives to strengthen and align its production output at key U.S. manufacturing operations. The plans include investing more than $900 million in three facilities — Toledo Transmission Operations in Ohio, Lansing Grand River in Michigan and Bedford Casting Operations in Indiana —  to prepare the facilities for future product programs.
      GM also announced plans to align production output with demand for cars built at the Lordstown, Ohio, and Lansing Grand River, Michigan, assembly plants. As the customer shift from cars to crossovers and trucks is projected to continue, GM will suspend the third shift of production at both facilities in the first quarter of 2017. 
    • By William Maley
      In 2016, nine brands sold 20 diesel models in the U.S. But in light of the Volkswagen diesel emission scandal, a number from Volkswagen, Audi, and Porsche have been sidelined. But there are diesel models from GM, FCA, BMW, Mercedes-Benz, Jaguar, and Land Rover still being offered. But the only 2017 models you can buy at the moment are from Jaguar and Land Rover. Where are the rest? In limbo thanks to a new battery of tests being doing by the EPA.
      Automotive News reports that since last October, the EPA has been subjecting diesel models to new tests to determine if other automakers are pulling any sneaky cheats. The EPA hasn't said anything publicly about the tests aside from them keeping the vehicles and testing them in unpredictable ways. So far, the new tests haven't uncovered any cheating.
      "It is true that diesel vehicles are getting extra scrutiny and that has extended the certification process longer than normal. In general, manufacturers have been supportive of this additional testing and have adjusted their timing to account for the additional test duration," EPA spokesman Nick Conger said to Automotive News.
      Case in point, BMW will not be launching their 2017 3-Series and X3 diesels until the end of the year, with the X5 following in January. Meanwhile, sources at GM tell Automotive News they're awaiting approval for 2017 Chevrolet Colorado and GMC Canyon diesels before they start sending them out to dealers. FCA doesn't have any 2017 Jeep Grand Cherokee or Ram 1500 EcoDiesels at the moment despite press details saying they would be offered. An FCA spokesman declined to comment to Automotive News - our guess is that FCA is waiting.
      Mercedes-Benz could be the big loser with this extensive testing. The German automaker was planning to sell four diesel models; C-Class sedan, GLC, GLE, and GLS. Mercedes-Benz spokesman Robert Moran tells Automotive News in an email that the priority for the moment is getting the certification for the GLS. Moran declined to say if Mercedes is planning to offer diesel versions of the GLC and GLE. However, the C-Class diesel has been taken off the table due to "product strategy reasons." This model was supposed to go on sale at the beginning of this year.
      Source: Automotive News (Subscription Required)

      View full article
    • By William Maley
      In 2016, nine brands sold 20 diesel models in the U.S. But in light of the Volkswagen diesel emission scandal, a number from Volkswagen, Audi, and Porsche have been sidelined. But there are diesel models from GM, FCA, BMW, Mercedes-Benz, Jaguar, and Land Rover still being offered. But the only 2017 models you can buy at the moment are from Jaguar and Land Rover. Where are the rest? In limbo thanks to a new battery of tests being doing by the EPA.
      Automotive News reports that since last October, the EPA has been subjecting diesel models to new tests to determine if other automakers are pulling any sneaky cheats. The EPA hasn't said anything publicly about the tests aside from them keeping the vehicles and testing them in unpredictable ways. So far, the new tests haven't uncovered any cheating.
      "It is true that diesel vehicles are getting extra scrutiny and that has extended the certification process longer than normal. In general, manufacturers have been supportive of this additional testing and have adjusted their timing to account for the additional test duration," EPA spokesman Nick Conger said to Automotive News.
      Case in point, BMW will not be launching their 2017 3-Series and X3 diesels until the end of the year, with the X5 following in January. Meanwhile, sources at GM tell Automotive News they're awaiting approval for 2017 Chevrolet Colorado and GMC Canyon diesels before they start sending them out to dealers. FCA doesn't have any 2017 Jeep Grand Cherokee or Ram 1500 EcoDiesels at the moment despite press details saying they would be offered. An FCA spokesman declined to comment to Automotive News - our guess is that FCA is waiting.
      Mercedes-Benz could be the big loser with this extensive testing. The German automaker was planning to sell four diesel models; C-Class sedan, GLC, GLE, and GLS. Mercedes-Benz spokesman Robert Moran tells Automotive News in an email that the priority for the moment is getting the certification for the GLS. Moran declined to say if Mercedes is planning to offer diesel versions of the GLC and GLE. However, the C-Class diesel has been taken off the table due to "product strategy reasons." This model was supposed to go on sale at the beginning of this year.
      Source: Automotive News (Subscription Required)
  • Recent Status Updates

  • Who's Online (See full list)