This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The 5 Dumbest Things on Wall Street This Week: Aug. 3

Stocks in this article: GMAAPLUBSKCGSTPDNDN

4. GM Marketing Chief's Shocking Departure

Hey GM (GM), what the heck happened with your global marketing chief? Enquiring taxpayers want to know!

General Motors (GM), which is still a third owned by Uncle Sam mind you, kicked marketing honcho Joel Ewanick to the curb on Sunday. Ewanick joined the automaker a little more than two years ago after a successful stint at Hyundai. At the time, GM was gearing up to emerge from bankruptcy and the gearheads in Detroit specifically brought in Ewanick to jump-start the world's largest failed carmaker.

And shock he did. Not only did Ewanick yank GM's paid advertising from media darling Facebook prior to its punk IPO -- the Times and WSJ should be reporting on this next week in case you missed it -- but he maddened Madison Avenue by pulling the automaker's ads from next year's Super Bowl. And you can also be sure that Ewanick's money-saving decision to consolidate GM's global advertising spending -- estimated at $4.5 billion annually -- went over "like a rock" with all those Don Draper wannabes intent on pitching Chevrolet like they always have.

Unfortunately, Ewanick must have crossed the wrong cables in his attempt to add voltage to GM's moribund marketing department. From all indications, his undoing occurred after he punted on the biggest football game in America and went rogue in his ultimately successful play to grab the sponsorship of the biggest football (as in soccer) team in the world, Manchester United. The seven-year, multi-million dollar transaction was announced almost immediately after Ewanick's departure, allegedly with some of the deal's details altered after he was kicked in the ass by his former employer. Not that GM is offering any clues about why it gave Ewanick the boot.

"He failed to meet the expectations that the company has for its employees," said GM spokesman Greg Martin, without offering any further color.

What that means, honestly, we have no idea and we aren't sure if we will ever find out. For his part, Ewanick has remained mum on the details of his so-called resignation, tweeting that he wishes "everyone at GM all the best."

Who knows, considering Ewanick was GM's fourth U.S. marketing chief in a year, maybe he was reluctant to comment because he wasn't expecting to stay that long anyway. Seriously, that kind of turnover is generally reserved for Knick point guards and the CEO spot at Yahoo!

One thing that is clear and may have clinched Ewanick's overthrowing, however, is the fact that America's largest carmaker saw its market share shrink to 18.1% in the first half, down from 19.9% a year earlier. Much of that loss is due to a resurgent Toyota, a collapsing Europe and an electrical vehicle known as the Volt that gets lots of press but has sales that are still sort of lifeless and that even Ewanick's best efforts could not recharge.

Nevertheless, for a company that has historically paid more attention to share than profits, that slippage was enough to remove any remaining doubts about Ewanick's future at the company.

We just wish they would remove the doubts about what happened while he was still there. We'll keep checking Ewanick's Facebook page for a status update.

2 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,195.42 +221.11 1.30%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,566.1380 +16.9120 0.37%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs