Sign in to follow this  
William Maley

GM News: Whistle-Blower To Have Cause The Departure Of Joel Ewanick

4 posts in this topic

William Maley    410

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.

Click here to view the article

Share this post


Link to post
Share on other sites
Justin Bimmer    138

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.

Share this post


Link to post
Share on other sites
dfelt    1,874

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.

Share this post


Link to post
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.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoticons maximum are allowed.

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

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  



  • Similar Content

    • By William Maley
      Last Sunday night, workers at General Motors' CAMI Assembly plant in Ingersoll, Ontario went on strike due to the automaker and Unifor Local 88 being unable to reach a tentative agreement. The plant where the majority of the Chevrolet Equinoxes are built has been shut down since. Now the side effects are the strike are beginning to be felt.
      At least 255 workers at GM's St. Catharines, Ontario plant have been given temporary layoff notices that begin tomorrow. St. Catharines is where the transmissions for the Equinox are built. According to Automotive News, workers spent the week stockpiling transmissions.
      "We supply about 90 per cent of (CAMI's) transmissions, so it's related to that. Even though they were down, we ran all week ... We have a lot of transmissions stockpiled now because we didn't know if they were going to resolve it this week or not. It doesn't look like they're going to," said Tim McKinnon, chairman of Unifor Local 199 that represents St. Catharines.
      “We’re off until they get it settled. Every time they sneeze, we catch a cold. If they pick up more volume, we pick up more volume.”
      GM announced late last week that it is making production adjustments at St. Catharines, Spring Hill, and Flint Engine Operations. Both Spring Hill and Flint provide the engines for the Equinox. Also last week, Canadian supplier Magna International said it would suspend the supply of parts.
      The top concerns for the two sides are very different. For GM, it is the worry of having enough supply of Equnoxes for the demand. Sales rose 85 percent year-over-year in August. While GM does also build the Equinox in San Luis Potosi and Ramos Arizpe, Mexico, the two plants cannot match the output of CAMI (40,017 for the Mexican plants vs. 132,288 for CAMI). For Unifor, they want assurances that CAMI will remain the lead plant for the Equinox and want another product for the plant to build.
      Unifor has reached out to GM on Wednesday on possibly restarting negotiations. At this time, no word on whether two have or will meet.
      Source: Automotive News (Subscription Required), The Canadian Press via CBC

      View full article
    • By William Maley
      Last Sunday night, workers at General Motors' CAMI Assembly plant in Ingersoll, Ontario went on strike due to the automaker and Unifor Local 88 being unable to reach a tentative agreement. The plant where the majority of the Chevrolet Equinoxes are built has been shut down since. Now the side effects are the strike are beginning to be felt.
      At least 255 workers at GM's St. Catharines, Ontario plant have been given temporary layoff notices that begin tomorrow. St. Catharines is where the transmissions for the Equinox are built. According to Automotive News, workers spent the week stockpiling transmissions.
      "We supply about 90 per cent of (CAMI's) transmissions, so it's related to that. Even though they were down, we ran all week ... We have a lot of transmissions stockpiled now because we didn't know if they were going to resolve it this week or not. It doesn't look like they're going to," said Tim McKinnon, chairman of Unifor Local 199 that represents St. Catharines.
      “We’re off until they get it settled. Every time they sneeze, we catch a cold. If they pick up more volume, we pick up more volume.”
      GM announced late last week that it is making production adjustments at St. Catharines, Spring Hill, and Flint Engine Operations. Both Spring Hill and Flint provide the engines for the Equinox. Also last week, Canadian supplier Magna International said it would suspend the supply of parts.
      The top concerns for the two sides are very different. For GM, it is the worry of having enough supply of Equnoxes for the demand. Sales rose 85 percent year-over-year in August. While GM does also build the Equinox in San Luis Potosi and Ramos Arizpe, Mexico, the two plants cannot match the output of CAMI (40,017 for the Mexican plants vs. 132,288 for CAMI). For Unifor, they want assurances that CAMI will remain the lead plant for the Equinox and want another product for the plant to build.
      Unifor has reached out to GM on Wednesday on possibly restarting negotiations. At this time, no word on whether two have or will meet.
      Source: Automotive News (Subscription Required), The Canadian Press via CBC
    • By William Maley
      General Motors has been seeing sales of their passenger cars take a sharp drop as buyers latch on to crossovers, SUVs, and trucks. The first half of 2017 has seen GM's passenger car sales drop 19 percent. In June, passenger cars went into freefall with a 36 percent drop. This has General Motors making some drastic decisions in terms of products and production sites.
      "We are talking to (GM) right now about the products that they currently have" at underused car plants such as Hamtramck in Michigan and Lordstown in Ohio, and whether they might be replaced with newer, more popular vehicles such as crossovers, said Dennis Williams, president of the UAW.
      According to sources, GM is considering dropping six models after 2020. The models include,
      Buick LaCrosse Cadillac CT6  (See Update Below) Cadillac XTS Chevrolet Impala Chevrolet Sonic Chevrolet Volt Four of the vehicles listed (LaCrosse, CT6, Impala, and Volt) are built GM’s Hamtramck plant in Detroit. According to suppliers, Hamtramack's production output for the first half of 2017 is less than 35,000 vehicles, down 32 percent when compared to the same time last year. Other GM plants are able to produce 200,000 - 300,000 vehicles in a year, putting Hamtramck in a dangerous spot.
      GM must "create some innovative new products" to replace slow-selling sedans "or start closing plants," said Sam Fiorani, vice president of AutoForecast Solutions.
      A possibility of a new product is replacing the Volt with some sort of utility vehicle boasting a plug-in hybrid powertrain according to sources.
      Source: Reuters
      UPDATE: “There is absolutely, if I could speak all capitals now, they’d be coming out of my mouth. There is absolutely no plan, at all, to cancel the CT6,” said Cadillac president Johan de Nysschen to Jalopnik when asked about this report from Reuters.
      “That report came as a surprise to me, too.”
      de Nysschen said the brand is planning to invest more into the CT6 in the coming years as it will play an important role in the coming years.
      “The [CT6] forms a very important part of our product strategy going forward for the brand,” de Nysschen said. “The car also has a very major contribution to make to the shaping of brand perceptions, and the transformational process that Cadillac is undergoing as far as that is concerned.”
      Source: Jalopnik

      View full article
    • By William Maley
      General Motors has been seeing sales of their passenger cars take a sharp drop as buyers latch on to crossovers, SUVs, and trucks. The first half of 2017 has seen GM's passenger car sales drop 19 percent. In June, passenger cars went into freefall with a 36 percent drop. This has General Motors making some drastic decisions in terms of products and production sites.
      "We are talking to (GM) right now about the products that they currently have" at underused car plants such as Hamtramck in Michigan and Lordstown in Ohio, and whether they might be replaced with newer, more popular vehicles such as crossovers, said Dennis Williams, president of the UAW.
      According to sources, GM is considering dropping six models after 2020. The models include,
      Buick LaCrosse Cadillac CT6  (See Update Below) Cadillac XTS Chevrolet Impala Chevrolet Sonic Chevrolet Volt Four of the vehicles listed (LaCrosse, CT6, Impala, and Volt) are built GM’s Hamtramck plant in Detroit. According to suppliers, Hamtramack's production output for the first half of 2017 is less than 35,000 vehicles, down 32 percent when compared to the same time last year. Other GM plants are able to produce 200,000 - 300,000 vehicles in a year, putting Hamtramck in a dangerous spot.
      GM must "create some innovative new products" to replace slow-selling sedans "or start closing plants," said Sam Fiorani, vice president of AutoForecast Solutions.
      A possibility of a new product is replacing the Volt with some sort of utility vehicle boasting a plug-in hybrid powertrain according to sources.
      Source: Reuters
      UPDATE: “There is absolutely, if I could speak all capitals now, they’d be coming out of my mouth. There is absolutely no plan, at all, to cancel the CT6,” said Cadillac president Johan de Nysschen to Jalopnik when asked about this report from Reuters.
      “That report came as a surprise to me, too.”
      de Nysschen said the brand is planning to invest more into the CT6 in the coming years as it will play an important role in the coming years.
      “The [CT6] forms a very important part of our product strategy going forward for the brand,” de Nysschen said. “The car also has a very major contribution to make to the shaping of brand perceptions, and the transformational process that Cadillac is undergoing as far as that is concerned.”
      Source: Jalopnik
    • By A Horse With No Name
       
      Very impressive....
       
      Not quite as fast as this Camaro though...
      Very impressive Drag week performance, this has been driven on the street...
       
       
      251 in the quarter and done with GM power...awesome!
       
  • My Clubs

  • Who's Online (See full list)