If auto makers are having so much trouble, how do they afford all those TV commercials?

The auto makers say they are having financial problems yet there is no shortage of TV commercials! How do they afford to put out all those commercials on TV?

9 Answers

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  • 1 decade ago
    Favourite answer

    You are the one paying for them luv

  • 1 decade ago

    How do you expect them to make money if they stop advertising.

    If you don't advertise you get forgotten about and you lose to the advertising competitor.

    In the grand scheme of things advertising is only a very small % of the issue. Revising structure, UAW agreements, lean processes etc will save more money much faster.

    interestingly Ford just post a 2.1 billion profit for Q2.

  • LeAnne
    Lv 7
    1 decade ago

    Advertising works - it's really as simple as that.

    It's part of the expense of operating a large market product which has lots of competition.

    And if these dealers and manufacturers don't start moving these vehicles off their lots and storage facilities, they'll find themselves being flushed down the financial toilet.

  • 1 decade ago

    Its a business expense,for one we pay for it when we buy a car,then they take a tax writeoff for it,if business get fined for anything illegal they also get to write that off as a tax deduction,if you or I get a speeding ticket we dont get to write it off on our taxes,so goes to show you the tax system isnt fair in this country,you want it to be fair? back Obamas tax plan to raise taxes on people making 250k a yr or more,and no it wont hurt small businesses because most small businesses are lucky to make 50k a yr.

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  • 1 decade ago

    commercials get them business

    if the commercial is 1000dollars and they make 5000 $

    from that commercial being broadcast it helps them

    help the automakers buy an american car

  • 1 decade ago

    It is advertising - they deduct that expense. But still - they have to pay before they can deduct it. I guess it is just the cost of doing business. If they don't advertise - they don't get the business - so they have to advertise.

  • 1 decade ago

    Because in this time of recession, commercials are really, really cheap.

  • 1 decade ago

    Government bailout money

  • Anonymous
    1 decade ago

    tax money

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