In fact, according to GM’s VP of global communications, “all budgets throughout communications” are being cut. Like many other large companies, GM employs several PR firms. Although GM’s budgets are being drastically reduced, at least one firm has agreed to battle the storm with the American automaker. MS&L, a leading global communications firm, will “temporarily reduce rates next year” to devote themselves to “helping GM get through the current financial situation and onto firmer ground in 2009,” according to the firm’s CEO, Mark Hass.
Reducing their rates is very kind of MS&L, but are they genuinely committed to the cause or could the drop of the giant automaker be disastrous for the communications firm. As many organizations’ budgets are being cut left and right, agencies and firms are losing clients and are seeking any way to hold on.