The hiring of a senior General Motors Corporation executive to coordinate all Interpublic agency services to the troubled US motor manufacturer, announced today, has all the signs of a pre-emptive move to maximise the prospect of retaining the GM relationship following its anticipated bankruptcy in a few weeks' time.
The new hiring is 56 year old Martin Walsh. During his 33 year career at GM he has held senior marketing positions as well as performed more general management roles. He will report directly to Interpublic's chief executive Michael Roth.
Observers expect GM to sell off a controlling interest in its European operations within the next week or two and then to seek protection from its remaining creditors by filing for bankruptcy. If this happens, Interpublic risks not only the non-payment of outstanding debts but also the appointment of competitor agencies to service the successor business. By hiring an influential GM executive Interpublic's Roth is clearly doing everything possible to retain as much of the GM business as possible.
Last week Interpublic secured protection from any precipitate action by its bankers in the event that it is hit by big GM bad debts that would otherwise threaten its own solvency (see IPG negotiates protective deal with bankers in case GM collapses).
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BOB WILLOTT
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