GM looks to save $2B through marketing consolidation

General Motors will reportedly reduce the number of ad agencies it uses to promote Chevy from 50 to just five.

General Motors has been making noises for months now about searching for ways to run leaner and increase its profit margins, and it now seems that the automaker will look to make progress towards both goals by consolidating its advertising and marketing efforts.

The General is expected to announce within the next few days that it will pare down the number of advertising agencies it uses to promote Chevrolet from more than 50 to just five major firms. Together with GM's plan to downsize its media planning budget, the move will help save $2 billion over the next five years, according to Automotive News.

The cuts would equate to an average savings of $400 million each year, which represents 10 percent of GM's overall advertising budget, and would definitely be a boon to GM in its pursuit of 10 percent pretax margins, a lofty goal given the automaker's six percent margin last year.

While General Motors works to cut back on the number of advertising agencies it uses, Ford is actually heading in the opposite direction - back in December, the Blue Oval announced that it was creating a brand new agency to help craft a unique identity for its struggling Lincoln brand.