Biplab Das 
In a departure from its tradition of using the Super Bowl as a platform to showcase its latest offerings, General Motors (GM) announced on Monday that it will not advertise during the 2024 Super Bowl. This marks the first time since 2019 that GM will sit out the NFL championship game, as part of a broader strategy to curtail fixed expenses and streamline operations.
Strategic cost reduction measures
GM’s decision aligns with its commitment to reducing operating costs, with a targeted cut of an additional USD 1 billion by the end of the next year. The automaker has been re-evaluating its media strategies, citing the need to align them with evolving business priorities. In October, GM announced a slowdown in the launch of several electric vehicle (EV) models, emphasizing a cost-cutting approach.
Super Bowl advertising history
Historically, GM has leveraged the Super Bowl’s massive viewership to promote its new electric vehicles. Last year, the automaker featured comedian Will Ferrell in its Super Bowl ads. However, the decision to skip the 2024 Super Bowl suggests a shift in priorities, as GM focuses on optimizing costs and navigating a changing automotive landscape.
Cost reduction initiatives
Before the additional USD 1 billion cuts announced in July, GM had outlined plans to slash fixed costs by USD 2 billion by the end of 2024. The company’s July announcement detailed that USD 800 million would be trimmed from reduced sales and marketing expenses, with the remaining amount originating from various areas, including engineering, travel, and administration.
Earlier in April, GM initiated a workforce reduction, with approximately 5,000 salaried employees opting for buyouts and leaving the company. This move aimed to cut fixed costs by around USD 1 billion annually, with additional job cuts in February.
Facing uphill challenges
GM is contending with increased costs stemming from a new labor agreement with the United Auto Workers union. The agreement includes immediate 11% pay hikes and a cumulative 25% increase through 2028. The challenges posed by higher labor costs contribute to GM’s broader strategy of reevaluating expenses and reshaping its operational landscape.
