GM Stands by Sponsorship

The restructuring of General Motors, including its filing for bankruptcy protection in the United States and billions of dollars in public financing, will have "no impact'' on its sponsorship of the Vancouver 2010 Winter Olympics, the company said Monday.

GM filed for bankruptcy protection as governments in Canada and the U.S. announced plans to keep the company afloat - including US$9.5 billion from Ottawa and Ontario.

The beleaguered automaker committed $67 million to the Games when it signed on as one of the top domestic sponsors in 2005. Most of that is in the form of in-kind contributions such as vehicles, but it also includes $14 million in cash.

The company and Vancouver Olympic organizers have faced questions in recent months about how GM's financial trouble might affect the sponsorship deal, but they have repeatedly insisted it won't.

"There will be no impact on our sponsorship of the Winter Games,'' company spokesman Stew Low said in an email Monday.”We are fully committed to our support.''

Low wouldn't say how much has already been handed over to Olympic organizers and how much is yet to come, but he did confirm that parts of the sponsorship, including some vehicles, are still on their way.

Olympic organizers again said they're confident GM will deliver on its sponsorship commitments.

"Over the past several days, our senior executives have been in regular communication with our partners at GM Canada Ltd. who have reaffirmed their support for the 2010 Winter Games,'' Renee Smith-Valade of the Olympic organizing committee said in an email statement.

"GM has been an exceptional partner and has met all of their commitments to date, both financial and value in kind.''

Other Olympic sponsors are also facing their own financial problems, including Air Canada and Nortel, but organizers have said they're not worried those deals could fall apart, either.

GM is one of the top domestic sponsors of the 2010 Games, although it is by no means the largest.

The company's contribution is dwarfed by companies like Bell Canada, whose sponsorship totals $200 million, and HBC, which signed a deal worth more than $100 million.

When GM signed on as an Olympic sponsor three-and-a-half years ago, the company said it was adding 60,000 employees, dealers and retailers to the Olympic team - but that team will likely be significantly smaller when the Games begin in February of next year.

The company plans to shed thousands of employees, cutting production jobs in Canada to just 6,000, down from 20,000 in 2005.

GM has already closed its truck plant in Oshawa, Ont., plans to close a transmission factory in Windsor next year, and will get rid of several brands and close a substantial number of dealerships.

 

SOURCE: http://www.ctvolympics.ca/