General Motors (NYSE: GM) has finally ended its nine-year endorsement deal with Tiger Woods. Tiger had been carrying a Buick golf bag since 2000, and GM said the separation was "mutual and amicable" and that Woods had a "desire for more personal time."GM, meanwhile, has a desire to keep the lights on for a few more months. The contract will now end on December 31, 2008, a year sooner than it had previously been set to expire.
The Tiger-Buick deal was always awkward. The average age of a Buick driver is around 63-years-old, and the notion of Tiger Woods tooling around in a Buick simply wasn't believable. The $7-million per year deal did little to stop the decline of the brand, and as with any endorsement deal involving a sports icon you have to question the motivation behind the deal.
Were GM executives looking to create shareholder value or were they buying the opportunity to show up at the Buick Invitational and have a few beers with Tiger and Vijay? We'll never know.
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Reader Comments (Page 3 of 3)
11-26-2008 @ 3:30AM
mark said...
why the hating on tiger? He is one the greatest golfers of all time, if not the greatest already. His being paid 7 million has nothing to do with the decline in gen motors, in good times that is the going rate for an association with a world reknowned figure and he has nothing to due with the dilemma they are going through right now. Being jealous of the intense work ethic he had in becoming the player he is will not make anyone a better person. Only by putting in that type of work on his specialty makes him the type of person that others wish to shower with money to have any type of affiliation with him. If GM used his work ethic as an example in how to improve its marketshare they would not be begging for money at the door of the American taxpayers.
11-26-2008 @ 4:19AM
georgi said...
Nothing against Tiger at all, but if the average age of a Buick driver is 63, that line is through. That age group in the past had a pension, SS, and savings. Over the past 8 so many have lost pensions; and, if they had IRAs they have lost almost 40 percent today and that could be the cost of a Buick or even 4 or 5 of those things. In other words, this economy has taken the majority of their buyers away from them.
Sorry for GM, but I am nearing that age group and most my friends are at that age or older, and I don't know a single one of them looking to buy a new car in the near future.
11-26-2008 @ 6:16AM
possie said...
I herd our elected screw balls trying to disgrace the big three at there request for assistance and I think this is a prime example of the kind of people we have serving us in Washington. I wish it were me that they questioned as to how I arrived at the hearing because I would have told them it was none of there dam business, and if I had rode a jack ass to get there I would have earned the right to ride it.
I think that most people in this country forgot that the fact that the big three had to hire a 25% minority work force or face the wrath of the federal government and also that they are forced to bargain with the unions when the contract expires. This to me puts them at an unfair advantage competing with other car manufactures in this country.
I understand that they wanted to borrow 20 billion, well that a long way 750 billion that we just gave to a bunch of bankers that clearly abused the trust of the American people, and I have not herd of those dam crooks being question by our screw balls on the hill. I guess my understanding of robbing a bank gets you 20 years in prison, but if you rob the bank while you work there you get bailed out by the screw balls on the hill.
I was really impressed by the house when they informed the big three that they must have a plan, “well” where in the hell the plan for the bankers that took 52 billion and paid there share holders dividends on stocks. ”Well” guess what Ill bet that most of that 52 billion went into the pockets of the same people who made all those stupid loans to people who they knew could not afford. Our screw ball on the hill comments about the bankers paying the 52 billion out to share holders was, “well” we hoped that they would be responsible and not use the money for that purpose. “where” the plan?
11-26-2008 @ 6:23AM
bill said...
first of all tiger wasnt fired, it was a mutual agreement to end his contract and probably wise on GM's part because its hard to ask for a 25billion bailout when your paying someone 7 mill a year for advertising.
second to all you people who think tiger's greedy, remember it was GM that contacted him, not him contacting GM for the deal.
3rd there will always be celebrities doing endorsements for some company and getting paid big bucks, its been going on for along long time.
i was a gm manager in dealerships for over 20years and remember the very very lavish new car show parties they thru, which by the way they are ceasing to an extinct now, so did they fire me cause they spent to much money on me and the rest of the automobile sales world, NO just a bad way of spending their money.
gm,ford and chrysler were the kings in their heyday and never dreamed of the competition they would face and unwisely spent their money as they thought it would never run out, like turning on a water tap and presto more water, thats how they spent their money and i can attest to that with parties,trips and awards like rolex watches and such.
the average hourly wage for wokers in the USA is i'd say around half what the auto industry workers make and economically its not possible to make a product you pay someone say $30.00 an hour to build to sell to someone that makes $15.00 an hour, thus why you now have 5,6,7,8 years of financing for automobiles.
and yes i still buy AMERICAN, true american not just something you can say is american because people have plants in our country now, if there is such a true thing as american built now days.
11-26-2008 @ 8:54AM
Rob said...
I would like to see the big 3 go bankrupt there cars are to expensive to by I say lower the price of the cars they should be able to do this if they go bankrupt which would sever all ties with the unions which would indeed save alot of money probably what they are asking to borrow anyway if not more. Then they can restructure lower salarys and keep the unions OUT!!!! I have to go to work with a runny nose and if a union person has a runny nose they get 6 weeks off paid or if they get laid off they get 90% of there pay whats up with that.
12-06-2008 @ 4:11PM
Slakhamr said...
NOBODY IS THE BEST EVER,AT ANYTHING...
2-18-2009 @ 10:58AM
Harriet Brody said...
if there wasn't a tiger there would be no
golf. no one else can play golf.