Chrysler Financial News: Fiat and marketing budget

News that is dominating the auto industry is that of Chrysler and Fiat, there have been some huge debates as to whether the Obama auto task was right to chop Chrysler’s marketing budget in half from $134 million. This certainly has a huge financial impact on the company, something that Reuters has been trying to explain.

It is no secret that in this current downturn in auto sales you need to keep your marketing budget high not reduce them, and it seems wrong for the government to tell a car maker how it should market itself.

Reuters believes that it is important for Chrysler to sustain its marketing during this current recession, if they were to reduce it the brand could suffer. The other problem is, Chrysler is going through a transition stage with Fiat, and a bigger marketing budget will let consumers know what is going on.