DETROIT Aug 8 The global marketing chief for
General Motors Co was fired last week for not properly
disclosing as much as a third of the cost of a $559 million
sponsorship deal with English soccer club Manchester United,
people familiar with the matter said on Wednesday.
Joel Ewanick was ousted after a whistleblower in the No. 1
U.S. automaker's marketing department questioned some aspects of
the deal that will put the company's Chevrolet brand name on the
shirts of the soccer club's players starting in the 2014-2015
season, said the people, who asked not to be identified
discussing a matter that has not been made public.
There are no signs Ewanick profited personally from the
deal, but GM continues to investigate not only this deal but
other contracts he ha d a greed to, the people said.
Ewanick could not immediately be reached, but previously
refused to discuss his ouster. GM declined to comment, but
previously said Ewanick left because he "failed to meet the
expectations that the company has for its employees."
Manchester United said last week that the 7-year sponsorship
deal would bring in $559 million. GM will pay fees of $18.6
million in this year's and next year's season, before paying $70
million in the 2014-2105 season. GM's payments will rise 2.1
percent each season thereafter, through the 2020-2021 season.
After the deal was announced, sources said GM had
renegotiated portions of the agreement for less money.
On Wednesday, people familiar with the matter said Ewanick
had split the price of the sponsorship deal among several
marketing budgets to avoid company spending limits.
Bloomberg reported details of Ewanick's exit, including the
involvement of the whistleblower, earlier on Wednesday.
Ewanick denied he had sought to avoid alerting his bosses or
that the deal's structure was unusual after he was confronted,
the people said. The former marketing executive was questioned
for two to three days by GM corporate counsel Michael Millikin,
the people said.
GM executives have said repeatedly the company did not have
an issue with Ewanick's marketing strategy and they would not
change the direction the marketing department has taken.
Ewanick, 52, was named vice president and head of GM's U.S.
marketing in May 2010, about seven months before the automaker's
blockbuster initial public offering in November of that year. He
was given free rein to shake up GM's marketing, which had been
perceived as stale.
The first major effort under his watch was the "Chevy Runs
Deep" campaign that launched at the start of the Major League
Baseball's World Series in 2010. Critics say the campaign has
failed to connect well with consumers.
When he was promoted to global marketing chief in December
2010, Ewanick said the move was intended to give marketing a
seat at the executive conference table and a say in planning and
budgeting for new GM vehicles.
Ewanick, who was credited with helping drive Hyundai Motor
Co's fast growth in the U.S. market and briefly
worked at Nissan Motor Co, steered GM back to
sponsorship of high-profile events like the Super Bowl.
In May, he announced GM would pull its paid ads from
Facebook days before the highly anticipated initial
public stock offering for the social networking website, and
said GM would not advertise on CBS during the 2013 Super
Bowl because they were both overpriced.
Earlier this year, GM announced efforts to save $2 billion
over five years by pruning the number of ad agencies it uses.