GM Regional Setup Takes Shape

General Motors has moved more than halfway toward its goal in enlisting dealers for a new network of local marketing groups.

The automaker has signed up about 150 LMGs so far, with a goal of having groups for the five GM brands in each of the top 50 markets—or 250 LMGs—by fall.

The local marketing groups replace the old dealer marketing groups, which ran on contributions from dealers and hired their own agencies.

GM established its regional sales and marketing operations structure, dividing the country into five regions, and took control of the approximately $1 billion in local ad spending.

John Middlebrook, GM’s vice president and general manager, vehicle brand marketing and corporate advertising, said the tough retail market makes local advertising more important.

“As they do come together we tend to support them to get them off and going, and that does create some more local weight for us,” Middlebrook said.

Once 75 percent...