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General Motors cuts sponsorship budget by 60 percent

General Motors slashed its sponsorship budget by 60 percent from pre-bankruptcy levels, signalling that the days of multimillion-dollar rights deals may fade as the US automaker looks to connect more effectively with consumers.

GM filed for bankruptcy in June 2009 and emerged a month later after taking a total of USD50 billion in funding from the US government, which owns a 61 percent stake in the company.

From 2006-08, GM spent about USD230 million to USD250 million on sponsorships, with about half of that in the National Association of Stock Car Racing and other motorsports, according to sponsorship research firm Navigate.