Tech & Biz

GM Says Bankruptcy Won't Affect Its 2010 Olympic Sponsorship Deal

by yuls.source | June 1, 2009 at 11:27 am

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Despite filing for bankruptcy protection today, GM says it will stay committed to its Olympic Sponsorship deal with the 2010 Vancouver Olympic Games.

US President Barack Obama announced that GM will file for bankruptcy protection today, which immediately caused the company to drop from the Dow Jones industrial average. The company has $82.29 billion in assets, but has twice as much debt to repay. However, as the news of GM bankruptcy appeared on major news wires, GM was quick to address its 2010 Olympic Sponsorship commitment. General Motors released a statement saying the company will not cut back on its sponsorship commitment for the 2010 Vancouver Winter Games, and will carry through with it despite having to pay $14 million in cash and $53 million in car contributions.

General Motors says the company's restructuring plans, including its filing for bankruptcy protection in the United States, will have "no impact'' on its sponsorship of the Vancouver 2010 Winter Olympics.

GM has committed $67 million to the Games, and while most of that is in the form of in-kind contributions such as cars, it also includes $14 million in cash.

Stew Low, a spokesman for the company in Canada, says GM remains "fully committed'' to its sponsorship of the Games and its financial woes won't have any impact on that.