Ford UK slashes spend as part of $9bn thrift drive

Ford UK is expected to slash advertising spend, as its ailing US parent company seeks to make $9bn (£6bn) cost-savings over the next year.

The car company says it is looking to shave costs where possible, with advertising being reviewed on a global basis.

A Ford UK spokesman says: “There is significant pressure on the business at the moment and it is possible we will look at advertising to relieve this.”

Sources close to the manufacturer say that they are anticipating lower spend by Ford, due to a reduction in product launches.  The next launch, the new Ka, is not due until January and one industry insider claims that, as a result, ad spend has been cut completely for the rest of 2008.

Ford has already cut advertising spend by $250m (£167m) in the past financial year. Its global budget for 2007/8 was $550m (£367m) compared with $800m (£534m) the year before.

Senior sources estimate the budget for this year could fall by a further $100m to $150m (£101m) over 2009.

A Ford USA spokeswoman says: “Marketing cuts are planned globally in order to achieve greater global efficiencies, but we cannot go into specifics at this time.”

Ford UK is banking its hopes on the launch of its new Ka range. The car is heavily promoted in the latest James Bond movie, Quantum of Solace, and its launch will be timed to coincide with the release of the movie on DVD in January 2009. 

Earlier this week, it was reported that Ford’s chief executive, Alan Mulally, confirmed cuts in advertising spend as part of an effort to save $9bn (£6bn).

The move comes as the Detroit car-maker waits for the US Senate to pass a bill offering government aid to help stabilise the finances of Ford, General Motors and Chrysler.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here