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Friday, January 27, 2006

Super Bowl, let's roll

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DETROIT -- When Motor City won the right to host the 2006 Super Bowl seven years ago, Detroit's automakers were enjoying record profits and booming sales of sport utility vehicles. Times have changed. Today, the Big Three face the challenge of squaring their costly sponsorship roles with the downbeat news of losses and employee layoffs.

General Motors Corp.'s Detroit headquarters is already wrapped in a 21-story vinyl Super Bowl logo, and automakers say they're determined to put on a good show despite the shadow cast over Ford Field by recent announcements of plant closings and layoffs.

"This is not an industry in which you curl up in a ball and shy away from the realities," said Kevin Smith, a spokesman for GM's Cadillac division. "It's a time to scream to the clouds that we're here and we've got great values and great prices. What better time to do that than the Super Bowl?"

Michael Bernacchi, a marketing professor at the University of Detroit, estimates GM alone will spend up to $25 million for ads before and during the game and the sponsorship of the post-game show. Mr. Bernacchi said he expects the Big Three's ads will be toned down this year because of the financial crisis.

"In difficult economic times, it's certainly proper for stockholders -- or for anybody -- to ask the question, 'How much opulence?'" Mr. Bernacchi said. "It's a fair criticism."

Ford Motor Co. announced on Monday that it plans to cut 30,000 jobs and close 14 facilities -- including a plant near Detroit -- after losing $1.6 billion in its North American operations in 2005. GM, which lost $4.8 billion in North America in the first nine months of last year, is in the midst of a similar restructuring and plans to cut 30,000 jobs by 2008.

Chrysler Group has fared better, enjoying increased profits and healthy U.S. sales last year. But the division's parent company, DaimlerChrysler AG, announced plans this week to cut 6,000 administrative jobs over the next three years, mostly in Germany.

Representatives for the automakers and the National Football League wouldn't disclose what Super Bowl sponsorships, parties and other events will cost. Susan Sherer, director of the Detroit Super Bowl host committee, said her entire budget is $18.5 million, which includes donations from each of the Big Three.

Both GM's Mr. Smith and Marcey Evans, a spokeswoman for Ford, said their companies haven't pared down any of their Super Bowl activities in light of their losses.

"We just think that it's extremely important to continue to show our support for the city of Detroit and help the city show the best it has to offer to the world," Ms. Evans said.

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