General Motors was one of three auto giants who failed in their attempts to receive a US government bailout to help them through these uncertain economic times.
Clearly, something had to give. And that was the company’s multi-million dollar deal with the world’s top golf player, Tiger Woods.
Earlier this week, GM decided to end their deal with Woods, who has been faithfully displaying the Buick logo on his golf back for the past nine years.
The deal was reportedly worth US$7 million a year and the fact that GM pulled the plug one year before Woods’ contract expire probably indicates just how hard times are for ailing carmaker. In an AP story, GM official Larry Peck virtually said as much.
“Timing is everything. We’ve had such a great partnership with Tiger. It’s hard for us to walk away from that. But this frees up time for him. And it sure frees up a lot of money for us.â€
While Woods had benefited financially, GM also got much out of the deal. According to Peck, when the company launched the Enclave SUV model some years back, close to 80 per cent of those who bought the car did not previously own a Buick. Tiger is credited with increasing the number of converts to the car.
The company still plans to continue sponsoring two PGA Tour events – the Buick Invitational, which Woods has won six times, and the Buick Open, where Woods is a two-time winner.
As for Woods golf bag, it is unlikely to be without some sort of corporate logo for very long. Woods has been out injured since winning the US Open in June and is expected to return early next year.
