Ewanick out as GM marketing chief

[joe97]

GM dismisses marketing boss Ewanick after 2 years
Batey takes over global post on interim basis
Mike Colias
Automotive News | July 29, 2012 - 2:19 pm EST
UPDATED: 7/30/12 10:02 am ET - adds background

DETROIT -- General Motors has dismissed global marketing chief Joel Ewanick two years after hiring him to bring "creative leadership" to the automaker following its bankruptcy.

"He failed to meet the expectations the company has of an employee," spokesman Greg Martin said Sunday, without elaborating.

In a short statement, GM said Alan Batey, GM's vice president of U.S. sales and service, has been appointed interim global chief marketing officer. In May, Batey was promoted from vice president of Chevrolet sales and service to his current role.

The Wall Street Journal, Reuters and Bloomberg -- citing people familiar with the matter -- said Ewanick was removed for failing to adequately appraise the financial details of a recent sponsorship deal with Manchester United, a popular U.K. soccer team.

A source with knowledge of the situation said that talks had been ongoing for days about the handling of Ewanick's departure.

GM hired Ewanick, 52, as U.S. marketing chief in May of 2010. By the end of that year, he was put in charge of global marketing, then a new position.

Ewanick joined GM from Nissan, where he worked for six weeks. He had previously been part of a team of Hyundai Motor America executives credited with boosting sales and polishing the Korean automaker's U.S. image.

"It has been a privilege & honor to work with the GM Team and to be a small part of Detroit's turnaround," Ewanick said Sunday in a Twitter post. "I wish everyone at GM all the best."

Ewanick did not reply to an e-mail from Automotive News seeking comment.

GM's global sales rose 2.9 percent to 4.67 million units in the first half of the year, according to Bloomberg. Rival Toyota Motor Corp. posted a 34 percent gain to 4.97 million following last year's earthquake, putting the Japanese automaker on track to reclaim the global sales title for the year.

GM has lost U.S. share this year, posting a 4 percent sales gain through six months in a market that's up 15 percent. July results will be announced on Wednesday, Aug. 1.

Executive changes

Ewanick's departure spotlights the volatility within GM's executive ranks under Dan Akerson, who was named CEO three months after Ewanick joined.

Since then, Akerson has installed a new product development chief and replaced the head of GM's troubled European operations twice.

Last year, former CFO Chris Liddell, a high-profile recruit from Microsoft Corp., left the company and was replaced by current CFO Dan Amman. GM also has replaced its heads of manufacturing and engineering and twice appointed new chiefs of the OnStar unit during Akerson's two-year tenure.

In addition, designer Dave Lyon left the company on Thursday, the Detroit Free Press reported. He had been scheduled to join GM's struggling Opel unit as design chief this week.

Ewanick recently led a massive consolidation of the external marketing and advertising agencies that work with GM. Last spring, he moved the account for Chevrolet's creative work from dozens of agencies globally to just one firm, Commonwealth of Detroit.

He also put all of GM's media buying duties under London-based Aegis' Carat unit, ending its work with dozens of smaller agencies. Combined, those moves are expected to save GM $2 billion over five years, the company has said.

Causing a stir

In May, Ewanick caused a stir after expressing skepticism about the effectiveness of advertising on Facebook and confirming that GM was pulling its direct advertising from the site -- just days before the social media company's initial public offering.

In the same interview, with The Wall Street Journal, he confirmed that GM would not advertise during next year's Super Bowl. Both disclosures caught GM officials off guard and sent them scrambling to clarify the company's position. Ewanick later expressed regret for how the news came out.

The spokesman said Ewanick's dismissal was not related to the incidents.

Ewanick also has presided over the controversial "Chevy Runs Deep" tagline, which critics have said falls short of providing an identity or narrative for GM's mainstay brand.

The slogan, launched in the fall of 2010, has been under review since spring, when GM awarded the Chevy account to Commonwealth. Ewanick previously had said that he expected a decision on its fate sometime this summer.

When he joined GM, Ewanick became the fourth U.S. marketing chief in a year following the automaker's June 2009 bankruptcy. The others were Mark LaNeve, Bob Lutz and Susan Docherty.

"Joel is highly regarded in industry and marketing circles and his track record speaks for itself," North America President Mark Reuss said in a statement announcing Ewanick's hiring. "We are very pleased to have his marketing acumen, creative leadership and energy at GM at this critical time."

PRESS RELEASE: GM Statement on Ewanick Resignation

DETROIT -- General Motors said today that Global Chief Marketing Officer Joel Ewanick has elected to resign effective immediately.

Ewanick, 52, joined GM in May 2010 in charge of marketing for the company's North America unit. He was named global chief marketing officer in December 2010.

Prior to joining GM, Ewanick was vice president of marketing and chief marketing officer for Nissan North America. Before joining Nissan, he served as vice president of marketing for Hyundai Motor America.

Alan Batey, vice president, U.S. Sales and Service, will assume the role of global chief marketing officer on an interim basis.

http://www.autonews.com/apps/pbcs.dl...-after-2-years

[uncleho]

Swallow,

I got my Mexican... associates... to remove... errr... motivate Joel to resign. Your opportunity is now.

Please place envelope under bench at Detroit Zoo per our agreement.

[Swallow Doretti]

Swallow,

I got my Mexican... associates... to remove... errr... motivate Joel to resign. Your opportunity is now.

Please place envelope under bench at Detroit Zoo per our agreement.

For the record, I've already begun the process of updating my resume, and mentioned to a few folks I'll be interested in profiting off the bloodshed of others.

[ValveCoverGasket]

he was at nissan for only six weeks?
damn, moving quick...

[bzcat]

Publicly stating your company will not be buying Super Bowl ads never wins you an award if you are in marketing, even if it was the right decision. The pay off for sponsoring European football (it's Manchester U... the most recognized sports team in the universe) was much better for Chevy's global marketing budget but there are some very important stakeholders in the US market that did not like that move. Ultimately, this is another cautionary tale of hubris. This guy ran his mouth off too much... another marketing monkey that believed too much in his own hype.

[uncleho]

Publicly stating your company will not be buying Super Bowl ads never wins you an award if you are in marketing, even if it was the right decision. The pay off for sponsoring European football (it's Manchester U... the most recognized sports team in the universe) was much better for Chevy's global marketing budget but there are some very important stakeholders in the US market that did not like that move. Ultimately, this is another cautionary tale of hubris. This guy ran his mouth off too much... another marketing monkey that believed too much in his own hype.

I have nothing on this, but that sounds reasonable. Especially given his PC statement about the resignation (i.e. Golden Parachute to resign).

Most people 'fired' don't say nice things unless they are motivated by large sums of cash-ola to go amicably. I was hoping it was a lurid sex scandal, but I guess not.

BTW... I'm no high-pot hiring executive, but it would seem like a bad idea to hire somebody (lots of $$$ I'm sure) who is so eager to jump ship all the time. But that is just me.

[classicjetta]

BTW... I'm no high-pot hiring executive, but it would seem like a bad idea to hire somebody (lots of $$$ I'm sure) who is so eager to jump ship all the time. But that is just me.

Unfortunately that's the way most publicly traded companies operate today. Bring in the one silver bullet savoir from outside the company that is "making waves" is the way things go rather than looking for unrealized talent within.

Anywho, I'm sure GM will be back on Facebook in no time...

[Swallow Doretti]

Publicly stating your company will not be buying Super Bowl ads never wins you an award if you are in marketing, even if it was the right decision. The pay off for sponsoring European football (it's Manchester U... the most recognized sports team in the universe) was much better for Chevy's global marketing budget but there are some very important stakeholders in the US market that did not like that move.

Except it wasn't for two reasons:

1) Chevy is about to launch the new Silverado, which aligns perfectly with the Super Bowl
2) Moving a ton of money to MU for Chevy in the UK is kind of bad when you're at the same time trying to negotiate laying off thousands from Opel, and closing multiple plants.

Oh, and also: you should probably vet major decisions with your boss first before going public about it. It's just bad form for your boss to read about the company's new marketing strategy in Ad Age first.

[Minority5]

2) Moving a ton of money to MU for Chevy in the UK is kind of bad when you're at the same time trying to negotiate laying off thousands from Opel, and closing multiple plants.

Oh, and also: you should probably vet major decisions with your boss first before going public about it. It's just bad form for your boss to read about the company's new marketing strategy in Ad Age first.

The handwriting was on the wall IMO after he moved the global account to the UK. Why didn't he let anyone else that was familiar with the account at least submit a bid.

[robr2]

Except it wasn't for two reasons:

2) Moving a ton of money to MU for Chevy in the UK is kind of bad when you're at the same time trying to negotiate laying off thousands from Opel, and closing multiple plants.

It's not about UK advertising for Chevy - it's for worldwide exposure as the Chevy brand is expanded across the globe:

A new survey, designed to underpin the global commercial push that has driven the club's revenue growth in the Glazer era, has revealed that Manchester United have 659 million "followers" across the globe, an increase of 98% on the last comparable survey in 2007.

United are likely to point to the figures as proof that the local disquiet over the Glazer's ownership model has not derailed global growth. Of the 659 million, 173 million of those who named the club unprompted as the team they "followed" were from the Middle East and Africa, 325 million from the Asia Pacific and 108 million in China. Only 1% of United's fans are from the UK, the club said.

[2VWatatime]

Hmmm. Let's see, who was it that pointed out 'lil Joey's faults & opined it ill news for GM (and took flak for it)?

Heh. Maybe he can run PR for Chikfila...

[bzcat]

Except it wasn't for two reasons:

1) Chevy is about to launch the new Silverado, which aligns perfectly with the Super Bowl
2) Moving a ton of money to MU for Chevy in the UK is kind of bad when you're at the same time trying to negotiate laying off thousands from Opel, and closing multiple plants.

Oh, and also: you should probably vet major decisions with your boss first before going public about it. It's just bad form for your boss to read about the company's new marketing strategy in Ad Age first.

One of his mandate was to elevate global brand awareness of Chevy, particularly high growth markets in Asia; and that's why Manchester U sponsorship makes sense. Obviously not telling your boss is an issue and so was pissing off the "truck guys" at Ren Center. You may survive either one of those sins but probably not both.

[Swallow Doretti]

It's not about UK advertising for Chevy - it's for worldwide exposure as the Chevy brand is expanded across the globe:

I get that, but all those European Opel workers you're about to fire think of MU as a distinctly European brand, not one with a global presence. So while it makes sense for Chevy to support MU from a tactical level, it also reinforces in the minds of Opel employees the idea that GM is giving the company the shaft so it can shut it down and put in the Chevrolet division across Europe.

I'm not saying GM shouldn't do it; just that Ewanick showed no tact in how he did it (also, there's rumors floating around about impropriety in how the deal was handled).

[2VWatatime]

I'm not saying GM shouldn't do it; just that Ewanick showed no tact in how he did it (also, there's rumors floating around about impropriety in how the deal was handled).

Oh, you mean MU's on again/off again IPO in attempt to raise... the amount of the "buy in"?
The entire deal is a$$ blindingly stupid - an Ewanick trademark.

[Minority5]

I get that, but all those European Opel workers you're about to fire think of MU as a distinctly European brand, not one with a global presence. So while it makes sense for Chevy to support MU from a tactical level, it also reinforces in the minds of Opel employees the idea that GM is giving the company the shaft so it can shut it down and put in the Chevrolet division across Europe.

I'm not saying GM shouldn't do it; just that Ewanick showed no tact in how he did it (also, there's rumors floating around about impropriety in how the deal was handled).

1.) Sliverado or EU market? Not a clear cut answer.

2.) His house in California was brought by guess who...

[robr2]

I get that, but all those European Opel workers you're about to fire think of MU as a distinctly European brand, not one with a global presence. So while it makes sense for Chevy to support MU from a tactical level, it also reinforces in the minds of Opel employees the idea that GM is giving the company the shaft so it can shut it down and put in the Chevrolet division across Europe.

I'm not saying GM shouldn't do it; just that Ewanick showed no tact in how he did it (also, there's rumors floating around about impropriety in how the deal was handled).

It really doesn't matter what they think. Right now the plan is expand the Chevy brand globally and if the rank and file Opel workers don't want to accept that, they don't have to.

Besides, IMHO Opel isn't going anywhere soon. It will be difficult for GM to make a case to the EU that they want to kill the brand, close the plants and replace it with Chevy. I wouldn't be surprised to see Chevy replacing Opel and Vauxhall in the EU eventually but many of those Chevies will be made in that market.

[Minority5]

It really doesn't matter what they think. Right now the plan is expand the Chevy brand globally and if the rank and file Opel workers don't want to accept that, they don't have to.

Besides, IMHO Opel isn't going anywhere soon. It will be difficult for GM to make a case to the EU that they want to kill the brand, close the plants and replace it with Chevy. I wouldn't be surprised to see Chevy replacing Opel and Vauxhall in the EU eventually but many of those Chevies will be made in that market.

I get what your saying, but if you had a choice of expanding the bowtie's image in a decaying market or sponsoring the NFL in launching a big moneymaker in the U.S., what would you pick? It's not as cut and dry. Having 'rumors' of said UK football deal being not exactly above board didn't exactly help his case. Amazing what audits can turn up.

[robr2]

I get what your saying, but if you had a choice of expanding the bowtie's image in a decaying market or sponsoring the NFL in launching a big moneymaker in the U.S., what would you pick? It's not as cut and dry. Having 'rumors' of said UK football deal being not exactly above board didn't exactly help his case. Amazing what audits can turn up.

That decaying market you refer to is Europe. My point is that it's not about Europe - it about:

Of the 659 million, 173 million of those who named the club unprompted as the team they "followed" were from the Middle East and Africa, 325 million from the Asia Pacific and 108 million in China. Only 1% of United's fans are from the UK, the club said.

If the study is to be believed, over 600 million "fans" of the 659 million are from outside Europe. GM has pinned it's hopes on Chevy to be the global brand and "global" is what's important.

But getting back OT, I'd love to really know what went down. I wonder if it had anything to do with getting Goodby and McCann to create a new worldwide agency to handle the Chevy account.

[Old Windy]

The article mentions a sponsorship or Futbol contract, anyone has the details or a link to that is. Apparently this is the straw that push him to be forced out.

[Hajduk]

The article mentions a sponsorship or Futbol contract, anyone has the details or a link to that is. Apparently this is the straw that push him to be forced out.

http://www.sfgate.com/business/bloom...er-3749078.php

[Minority5]

That decaying market you refer to is Europe. My point is that it's not about Europe - it about:



If the study is to be believed, over 600 million "fans" of the 659 million are from outside Europe. GM has pinned it's hopes on Chevy to be the global brand and "global" is what's important.

But getting back OT, I'd love to really know what went down. I wonder if it had anything to do with getting Goodby and McCann to create a new worldwide agency to handle the Chevy account.

Even outside of Europe, thnk about how much $$ GM makes on each full size truck sale vs any other market your referring to. Asia Pacific? Africa? The Middle East? No matter how many times you say 'global' it boils down to a volume seller with a high rate of return vs. developing markets. My only point is that it isn't a obvious answer. Regarding what went down, he had a house on the West Coast that had been on the market forever until this deal went down, and it was brought by someone of interest. Add in the audit of his bank accounts, and it doesn't take CSI investigation to figure out what happened.

[uncleho]

Even outside of Europe, thnk about how much $$ GM makes on each full size truck sale vs any other market your referring to. Asia Pacific? Africa? The Middle East? No matter how many times you say 'global' it boils down to a volume seller with a high rate of return vs. developing markets. My only point is that it isn't a obvious answer. Regarding what went down, he had a house on the West Coast that had been on the market forever until this deal went down, and it was brought by someone of interest. Add in the audit of his bank accounts, and it doesn't take CSI investigation to figure out what happened.

CSI Detroit!!!

Who would star in such a show?

[Minority5]

CSI Detroit!!!

Who would star in such a show?

uncleho and Swallow Doretti get my vote. What personnel would you pick as part of your team?

[TCBeekley]

I'm thinking Tim Allen. He's a big Detroit guy.

For real though, the whole GM not advertising on Facebook fiasco really didn't go over well, some big banks lost a lot of money on that IPO (UBS blamed that for a large part of the losses they reported this morning). The timing of the announcement couldn't have been worse. Maybe some external pressure was applied here...

[2VWatatime]

CSI Detroit!!!Who would star in such a show?

(had to do that. Sorry)

[BetterByDesign]

Never heard of him. As Marketing Chief, that's a problem.

[uncleho]

uncleho and Swallow Doretti get my vote. What personnel would you pick as part of your team?

I would be type-cast as the lab tech that never gets to go out on the streets. And I would never have a love interest. That would suck, so I would not be a good choice.

Dave Chappelle?

[robr2]

Even outside of Europe, thnk about how much $$ GM makes on each full size truck sale vs any other market your referring to. Asia Pacific? Africa? The Middle East? No matter how many times you say 'global' it boils down to a volume seller with a high rate of return vs. developing markets. My only point is that it isn't a obvious answer.

IMHO, spending money on ManU for 5 years of brand exposure in emerging/growing markets makes a heck of lot more sense than spending the same amount in one night of high dollar advertising to introduce a a new model that's going to sell in the 500K a year without advertising.

Regarding what went down, he had a house on the West Coast that had been on the market forever until this deal went down, and it was brought by someone of interest. Add in the audit of his bank accounts, and it doesn't take CSI investigation to figure out what happened.

This is something I have not heard about. Could you elaborate?

As for the whole thing, I gave this response on another forum as to how it went down:

Mahogany row: We need a strong CMO to lead this company's marketing. Somebody who isn't afraid to shake things up, get rid of the old ways and make us great. Hey about about that hotshot at Hyundai America whose done great things for them? He thinks outside the box and isn't afraid to take risks. GET HIM NOW.

2 years later:

Mahogany row: What is that guy thinking? Doesn't he understand we have a process on how to do things? He bypassed all the committees, boards, 360 reviews. That's not how we do things at GM. We have a tradition on how to operate that slows us down so we don't make mistakes and everyone gets to CYA. He should know we are risk averse and don't want to make waves. FIRE HIM NOW.

[Minority5]

IMHO, spending money on ManU for 5 years of brand exposure in emerging/growing markets makes a heck of lot more sense than spending the same amount in one night of high dollar advertising to introduce a a new model that's going to sell in the 500K a year without advertising.



This is something I have not heard about. Could you elaborate?

As for the whole thing, I gave this response on another forum as to how it went down:

Mahogany row: We need a strong CMO to lead this company's marketing. Somebody who isn't afraid to shake things up, get rid of the old ways and make us great. Hey about about that hotshot at Hyundai America whose done great things for them? He thinks outside the box and isn't afraid to take risks. GET HIM NOW.

2 years later:

Mahogany row: What is that guy thinking? Doesn't he understand we have a process on how to do things? He bypassed all the committees, boards, 360 reviews. That's not how we do things at GM. We have a tradition on how to operate that slows us down so we don't make mistakes and everyone gets to CYA. He should know we are risk averse and don't want to make waves. FIRE HIM NOW.

Sound reasoning. But with the euro brands pretty much pricing themselves out of most emerging markets, the bowtie has less of a uphill battle. I'd personally let the first generation of 'abroad Chevrolets' establish themselves as they have been doing--organically until the market matures. Oh and I understand the desire to groom a whole generation of bowtie buyers abroad--but the full sized pickup market is a really competitive one. Ford is only going to get stronger, and Dodge isn't a pushover. With the conservative approach being taken with the 2014's, I'd push more NA marketing in order to avoid a huge incentive push. But admittedly I might be a bit to close (as well as knowing some details of this deal) to this situation in order to make a truly objective observation.

And regarding your latter observation, while I'd usually agree, GM was correct in taking this action. Like as in 100% correct.

[robr2]

You mentioned something about his house. What's the deal with that? Inquiring minds want to know.