Detroit crashes into Time; Troubled carmakers reduce spending; ad cutbacks drive magazine layoffs.(News)

Crain's New York Business, January, 2007

Byline: Nat Ives Blame it on detroit. While many experts are looking to the digital future to explain why Time Inc. fired 289 people last week, they'd do just as well to examine the present--particularly the changing marketing habits of domestic auto marketers. The untold story is about the Motor City's beleaguered carmakers.

These longtime pillars of print advertising are cutting their costs and often seeking more direct and interactive connections with customers. Detroit automakers slashed spending with Time Inc. by more than $100 million last year. General Motors, formerly Time Inc.'s biggest advertiser, cut its outlays by 29%, or $47.8 million, according to estimates by TNS Media Intelligence. GM added no new magazines from the publisher to its...

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