Stellantis Will NOT Advertise During Super Bowl LVIII

Stellantis North America has made a significant announcement regarding its marketing strategy for the upcoming Super Bowl LVIII. The company, known for leveraging the Super Bowl stage for impactful brand promotion, has opted out of advertising during the event, marking a deviation from its established marketing tradition. This decision falls in line with a broader trend within the automotive sector, with other industry giants, including General Motors (GM), also withdrawing from Super Bowl advertising to streamline marketing expenditures.

The rationale behind Stellantis’ decision stems from the challenging landscape of the U.S. automotive market, characterized by persistent inflation, escalating interest rates, and dealership markups. A spokesperson from Stellantis elucidated, “With a continued focus on preserving business fundamentals to mitigate the impact of a challenging U.S. automotive market, we are evaluating our business needs and will take the appropriate decisions to protect our North America operations.”

Despite registering a profitable year in 2022, the company disclosed a 1% decline in its official sales numbers for 2023, having sold 1.53 million vehicles in the U.S. market. Notably, Chrysler Group, a division of Stellantis, has historically utilized the Super Bowl platform to enhance the visibility of its Chrysler, Dodge, Jeep®, and Ram brands. Advertisements like “Imported From Detroit” and “God Made A Farmer” have earned acclaim for their creativity and impact, often generating substantial buzz and industry accolades. Last year, a 30-second ad during Super Bowl LVII commanded a price tag of approximately $7 million.

Stellantis’ decision to abstain from Super Bowl advertising aligns with its overarching strategies aimed at fiscal prudence amidst the imminent transition to electric vehicles (EVs) over the next decade. In a concerted effort to adapt to market shifts, the company previously extended voluntary buyout offers to its workforce, with approximately 6,400 salaried employees in the U.S. accepting these packages. Earlier, the company had also initiated a voluntary leave program encompassing over 33,500 U.S. employees, including both hourly and salaried workers, as well as offering buyouts to Canadian employees.

These strategic maneuvers, inclusive of voluntary buyouts and workforce restructuring, form part of Stellantis’ initiatives to navigate financial challenges, such as offsetting the impacts of labor strikes and addressing increased labor costs resulting from agreements with unions like the United Auto Workers (UAW) and Canadian-union Unifor, the automaker has said.

Source: Reuters