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General Motors shaking up its marketing... again

One of the things that dogs the full comeback of General Motors is the instability of its marketing. That part of the automaker got yet another big shakeup today when GM confirmed what I have been tweeting for a few days - strong rumors that the Chevrolet and Cadillac ad accounts are walking to new ad agencies.
Cadillac, GM's luxury brand, is going into review from Fallon Worldwide, Minneapolis and the indications are that Campbell-Ewald, Chevy's old ad shop, will end up with most or all of it. C-E just announced that it was moving from its long-time home in Warren, MI to a new downtown Detroit office next to Ford Field, just blocks from GM.
The other shoe to drop shortly will be the shift of GM's most important brand, Chevy, from Goodby, Silverstein & Partners of San Francisco to McCann-Erickson of Troy, MI. McCann used to be the agency for Buick and GMC, as well as GM's corporate advertising, and has retained some pieces of business over the last few years. Sources have even told us that it was McCann that did a lot of the creative work on Chevy's new ad platform, Find New Roads. (Not to be confused with a former McCann tagline for Saab, "Find Your Own Road.")

GM recalling another 2.7 million vehicles in five separate campaigns

The recalls keep rolling in from General Motors, evidently keen to avoid repeating the mistakes of the ignition-switch debacle and clean house. This time they're all coming at once, with five separate recalls announced together covering approximately 2.7 million vehicles.
The largest of the five actions involves over 2.4 million units of the previous-generation Chevrolet Malibu and Malibu Maxx, Pontiac G6 and Saturn Aura in order to fix brake light wiring harness, which have been found to be susceptible to corrosion. The recall is separate from the 56k Aura sedans which GM recently recalled over faulty shift cables, not to mention the previous massive recall of 1.3 million vehicles - some of them the same models - but appears to have resulted from the National Highway Traffic Safety Administration investigation that started with the G6 almost a year ago.
The second-largest campaign involves the 2014 Chevy Malibu, specifically those fitted with GM's 2.5-liter engine and stop/start system, approximately 140,000 examples of which has been found to have problematic brakes. The issue does not appear to be connected to the recall of 8k Malibu and Buick LaCrosse sedans (also involving brake woes) which we reported upon last week. Four crashes have been reported in such models, but GM admits it's not yet clear if the problem was a contributing factor in the accidents.

GM can't keep up with most popular pickup orders

With the market for pickup trucks at its best since before the recession, General Motors can't afford any hiccups with the launch of its new 2014 Chevrolet Silverado and GMC Sierra twins, but it sounds like the popularity of V8-powered trucks is causing some supply-chain issues. Bloomberg reports that GM is experiencing a shortage of 5.3-liter V8 engines because an unnamed parts supplier has been unable to keep up with demand. This is leading GM to restrict the number of V8 Silverado and Sierra trucks that Chevrolet and GMC dealers are allowed to order.
Although it's unclear how long it will take to resolve the parts shortage, GM doesn't have much time to sort it out, as a new Ford F-150 looms on the horizon. At launch, GM's fullsize trucks were offered only with a base 4.3-liter V6 and the 5.3-liter V8, but a burlier 6.2-liter V8 will be available soon. Interestingly, at least at the moment, GM truck buyers don't seem as willing to downsize to V6 power as buyers of the F-150, which gets some 42-percent of its sales from trucks equipped with its EcoBoost V6 engine (not including the normally aspirated base V6).
Working out the kinks in the Silverado and Sierra's supply chain couldn't be more important to the health of the company. Full-size pickups are a huge profit driver - in 2012, the trucks were said to make up about two-third of GM's total profits.