Sponsors pulling out

[michelle1]

I was reading that GM's sponsorship of Test Track expires at the end of this month and because of their financial situation won't be renewing. That got me wondering about how many different sponsors do support the rides and events in WDW and what would happen if more follow suit?

 

[WDSearcher]

Virtually every major ride or attraction has a sponsor. They were needed to help get the attractions built as well as keep them maintained. GM isn't the first to pull out -- others have, and they've always been replaced by new ones (Kraft was replaced by Nestle at The Land, for example). Test Track will be a tough one to find a replacement for, though, since the entire auto industry is doing so poorly and it's kind of an "industry-specific" kind of ride. But I'm sure Disney is exploring many options.

 

[LovinPooh]

I read that Toyota was interested

 

[ParanoidAndroid]

It's a shame Test Track will no longer be heavily GM sponsored, I'm hoping Ford, which is actually doing quite well for itself, takes over so we still have an American auto company sponsoring the ride.

Then again, GM might as well keep the sponsorship, whats a couple million to sponsor a ride when you're losing billions a month anyways?

 

[WDSearcher]

It's a shame Test Track will no longer be heavily GM sponsored, I'm hoping Ford, which is actually doing quite well for itself, takes over so we still have an American auto company sponsoring the ride.

Then again, GM might as well keep the sponsorship, whats a couple million to sponsor a ride when you're losing billions a month anyways?

Well ... a big part of the ride (and the big benefit for the sponsor) is the product showcase at the end. That place where they get to show off all the new models, talk about technology, etc. If GM is failing to the point that they're not putting out anything new, or they're cutting back their line or whatever, that's not exactly something the company is likely to want to showcase. And, if a couple of million dollars means not having to lay a few more people off, I'd much rather GM drop the sponsorship and keep people working than continue a sponsorship just for show.

 

[elemusing]

I heard yesterday that GM pays Disney 5 MILLION dollars per year to sponsor it. I don't know why, but that took me by surprise! wow!

 

[mountdew1]

I was reading that GM's sponsorship of Test Track expires at the end of this month and because of their financial situation won't be renewing. That got me wondering about how many different sponsors do support the rides and events in WDW and what would happen if more follow suit?

The sponsorships are crucial for the construction of a new ride. It helps to defray the cost of developing/building the ride. The ongoing sponsorships, or those after the fact help to pay for rehabs/maintenance. (Supposedly, however some rides don't seem to get/require the maintenance that the amount of sponsorship was brought in) Losing the sponsorship after the fact might slow down/change rehab schedules, but it shouldn't affect the rides themselves besides possibly having an empty(ier) post show area.

 

[Swoop1]

It's a shame Test Track will no longer be heavily GM sponsored, I'm hoping Ford, which is actually doing quite well for itself, takes over so we still have an American auto company sponsoring the ride.

I'd have no problem if any of the foreign car makers who build and sell cars and trucks in the US wanted to sponsor Test Track and I imagine Disney wouldn't have a problem either.

 

[Vickis3js]

Now what happens at the end of the month when GM says they will not renew their contract? Does the ride keep going or do they just strip it of anything that says GM and they keep going? That is the main ride my kids are still talking about.

 

[Swoop1]

Now what happens at the end of the month when GM says they will not renew their contract? Does the ride keep going or do they just strip it of anything that says GM and they keep going? That is the main ride my kids are still talking about.

Ride will still keep on going. As for the GM stuff, my guess is Disney will probably strip it, however IMO I would just leave everything in place as long as GM was in agreement until a replacement sponsor was found. Afterall, what is Disney gonna replace GM with till they find a sponsor?

I'd rather see a completely themed ride still even if that means Disney has to give GM a free ride for a few months.

 

[Technosavant]

Has GM officially announced that they aren't renewing? I remember a lot of speculation that they wouldn't be doing so, but I think I missed it being official.

There was more to the sponsorship than just the pavilion- note that every Disney vehicle on property (well, not the buses, obviously, but the security vehicles and other support vehicles) was a GM product. I doubt GM donated all those vehicles, but I could see preferential volume pricing for the Disney corporation.

If GM is letting it go, then whoever picks it up is likely to get a bit more back than just the PR of sponsorship.

Still, though, if another sponsor picks it up I would expect a short time of refurbishment- all those GM products around the line and ride as well as the pre-ride video will need to be replaced with ones from the new sponsor. That isn't going to happen overnight (but it still shouldn't take all THAT long to do it).

 

[disnut8]

Talks are still going on so I wouldn't start writing things off just yet. Obviously, the big issue is General Motors getting government bailout money to try and stay afloat and then turning around and paying out $5million for a year's sponsorship of a theme park attraction. That's not going to sit very well with American taxpayers. I also heard the rumor about Toyota being interested but who knows? Fact or rumor, I guess only the executives at Toyota know.

Also a total random thing to think about is the many, many other things that make up a car and sponsors from there. Tires for example. Spark plugs. Brakes - let's not forget a big part of Test Track is the braking test. Gasoline companies. There are tons of possibilities and I'm sure Disney is exploring some but they would want GM to continue.

 

[QueueCT]

I hate to say this but $5 million is a rounding error for a company the size of GM. Yes, they are squeezing for every penny, but how much do you think they spend on advertising globally? The real question is what kind of value is derived from this sponsorship for GM and can the $5 million be spent on other promotions that will have a bigger return. Regardless of what we might think, the money won't go to saving the jobs of 50 additional people.

 

[88Keys]

It also means that in this economy, the likelihood of a sponsor for a new pavilion at Wonders of Life is unlikely. I keep thinking of the imagineers (incl Marty Sklar) standing over the Epcot model saying, "and over here, we should build a pavilion solely to use as an inconvenient center for our Food and Wine Festival."

Just ruins the aesthete of Future World to have that closed building.

 

[bytheblood]

Link: http://www.orlandosentinel.com/business/orl-biztesttrack04030409mar04,0,4184081.story

GM's last lap on Epcot's Test Track?
Jason Garcia | Sentinel Staff Writer
March 4, 2009


One of Walt Disney World's marquee sponsorship deals is in jeopardy.

Struggling U.S. auto giant General Motors Corp. is considering pulling out as sponsor of Test Track, the high-speed Epcot attraction among the most popular rides in all of Disney World.

A 10-year contract between Disney and GM expires this year. And GM, which lost $31billion last year and is relying on loans from the federal government to stay in business, may not be able to afford to renew the pact.

Disney and GM are negotiating new terms but have so far been unable to strike a deal. GM has indicated it wants a resolution by the end of this month.

"We're still in discussions with them and haven't made a decision," GM spokeswoman Kelly Cusinato said. "It's definitely one that I think people are doing everything they can to preserve."

It is a lucrative partnership for Disney: Though neither company would discuss the terms, Automotive News reported last month that GM pays Disney close to $5million a year.

GM and other original corporate sponsors in Epcot, which opened in 1982, paid as much as $35million over 10years for their initial contracts, according to a former Epcot executive. The German engineering giant Siemens AG is currently paying Disney a reported $100million over 12years to sponsor Epcot's Spaceship Earth attraction.

Disney would not discuss details of its talks with GM.

"We continue to have a relationship with General Motors and are having ongoing discussions about continuing our relationship," spokeswoman Kim Prunty said Tuesday.

For GM, the marketing advantages of its Test Track sponsorship are obvious. The attraction is a top draw in Epcot, which lures an estimated 11million visitors each year, making it the second-busiest theme park at Disney World and the third-busiest in the United States.

The ride features vehicles, controlled by onboard computers, that carry guests through a series of simulated car-safety tests. During the 5 1/2-minute ride, guests are exposed to 100-degree temperature changes; bounced around hairpin turns; and hurtled through a final, outdoor sprint that reaches 60mph — the fastest top speed of any ride at Disney World.

Logo everywhere

GM's presence is everywhere. The carmaker's corporate logo is splashed throughout the pavilion that houses the ride. The queue includes a room featuring aerial photos of GM "proving grounds" around the world, from a desert track in Mesa, Ariz., to a cold-weather course in northern Ontario. Guests exit through a swanky showroom displaying more than a dozen GM vehicles and a gift shop hawking pink Cadillac ball caps, die-cast Corvettes and electronic-toy Hummers.

There are even computer terminals and a customer-service desk for guests to order GM sales brochures.

When the ride debuted in March 1999, GM's then-vice president for marketing and advertising in North America said it would "help build brand awareness, corporate image and ultimately introduce new customers to GM dealers and our products."

The benefits extend beyond advertising. Disney also purchases GM vehicles — including Chevy Trailblazers and Silverados and Saturn Vue hybrids — for its corporate fleet as part of the sponsorship deal, according to people familiar with the arrangement.

But as valuable as the pact is to GM, the company may no longer be able to afford it. The automaker has warned that it could go bankrupt without as much as $16.6billion in loans from the U.S. government — on top of $13.4billion in taxpayer loans it has already received.

GM would not be the first major corporate sponsor to drop out at Epcot. General Electric, ExxonMobil and AT&T are all former sponsors, while newcomers include Siemens and Hewlett-Packard. Theme-park analysts also say they are certain Test Track would continue operating even if GM pulled out, as the ride's capacity is vital to managing park crowds.

But losing GM would further pressure profits at Disney World, which is relying on deep hotel and ticket discounts to keep visitors coming despite the struggling economy.

Replacements?

Finding a replacement sponsor also could be tricky. A rival company is unlikely to want to take over a GM ride without making substantial changes, said Steve Baker, a former Epcot executive in charge of corporate sponsorships.

"Anybody coming in paying that kind of money would want their own fingerprints," said Baker, who is now president of Baker Leisure Group, an Orlando themed-entertainment consulting firm.

The most likely targets for a replacement sponsor at Test Track would be other car manufacturers. But the entire industry is struggling as the global recession depresses auto sales.

Marketing executives at Toyota Motor Corp. have discussed internally the prospect of sponsoring Test Track. But Joe Tetherow, a spokesman for Toyota Motor Sales USA, said "it would be premature to speculate on what's going to happen."

"We're cutting a lot of costs right now," Tetherow said. "But, obviously, there's going to be opportunities from time to time that come along that we might want to take a look at."

 

[Rockmtn]

This "sponsorship" is no different then advertising on tv or in mags.
Do the feds expect all the companies receiving bailout funds to stop advertising. It is not realistic. Maybe a revised contract for both might be in order. There is no denying that Test track draws millions of people who have direct contact with showroom vehicles.

 

[BostonRob]

This "sponsorship" is no different then advertising on tv or in mags.
Do the feds expect all the companies receiving bailout funds to stop advertising. It is not realistic. Maybe a revised contract for both might be in order. There is no denying that Test track draws millions of people who have direct contact with showroom vehicles.

Considering Citibank is paying $20 million per year for the naming rights to Citi Field in NY, I think $5 million per year for test track is reasonable. I'd guess the foot traffic through Test Track will be comparable (possibly even more) than the foot traffic through the stadium. Of course citibank gets tons of national exposure through national MLB broadcasts, but considering GM gets its own showroom at the end of the ride, i think $5 million is a very fair price.

 

[pilesoflaundry]

This "sponsorship" is no different then advertising on tv or in mags.
Do the feds expect all the companies receiving bailout funds to stop advertising. It is not realistic. Maybe a revised contract for both might be in order. There is no denying that Test track draws millions of people who have direct contact with showroom vehicles.

But is it really selling cars?

I could ride test track a 1000 times and I still won't buy gm. Shoot I wouldn't take a free GM car after what we went through with our venture and poor (read: no )customer service.

The coke advertising might work, people get hot and thirsty in the parks. But I really doubt people buy GM cars because it's affiliated with the ride.

 

[BostonRob]

But I really doubt people buy GM cars because it's affiliated with the ride.

I agree, I wouldn't buy GM either, whether it is affiliated with the ride or not. But perhaps it isn't such a direct cause-effect relationship. I'll go out on a limb and say that the execs that GM pays to handle their advertising and marketing know a little bit more about it than you or me.

 

[pavil]

To be honest, 5M for the marketing that GM gets to do in front of a captive audience at Test Track is a probaby a deal when compared to other marketing that companies of that size do. For some reason, people seem to think that struggling companies need to abandon all types of advertising, that would just make their situation worse.

You have to promote your products.