Even Tiger Can't Help GM

After nine years, General Motors, currently a little short on cash, has officially cut ties with Tiger Woods, the world's most bankable spokesman, because, well, they can't afford him. 

The cash-strapped company said in a statement that it is looking to reduce costs, and that the world's No. 1 golfer also wants more personal time as he expects his second child.

The endorsement deal, believed to be worth at least $7 million a year, was to end in 2009. Woods' agent at IMG, Mark Steinberg, said the decision to end the relationship one year early was "absolutely mutual."

"It was a combination of things,'' Steinberg said. "Tiger was looking to gain some more time, and certainly it was an opportunity for GM to reduce its spending with everything going on.''

Tiger isn't the first shiny toy the automakers were forced to give up in recent months either, according to sources.  

GM is so concerned about costs that it cut advertising during the 2009 Super Bowl, although it still plans to sponsor the National Football League and will likely [continue to] air ads before and after the game. GM also has pulled out of the Oscars and Emmy Awards in 2009 - the first time in over a decade that it is not running ads right before, during or after the two events.

In the last quarter alone, GM has lost about $7 billion, and will most likely have to declare bankruptcy if the federal government doesn't step in and save them from themselves. Although cutting back on advertising cost and severing endorsement deals are sound-- and relatively painless-- cost-cutting measures, GM execs probably should have thought about implementing them way before their stock was at $3 a share. 

(UPDATE: Although I still think GM waited way too long to pull the plug on some of their advertising expenditures and endorsement deals, they should be given credit for, you know, actually doing it. Unfortunately, the same can't be said about AIG and Citigroup, who are in even more trouble than GM.)