Oct. 23 (Bloomberg) -- Tiger Woods and General Motors Corp., the largest U.S. automaker, have had talks about whether to continue the golfer's endorsement of Buick beyond 2009.

GM may implement a round of cost cuts because a planned $15 billion in asset sales and savings won't be enough to maintain its liquidity amid deteriorating sales, people familiar with the matter said.

Woods's agent, Mark Steinberg, and Larry Peck, marketing manager for the golf division of GM's Buick line, said they recently spoke about setting a timeframe for further talks.

Buick, which has had an endorsement agreement with the world's No. 1-ranked golfer since 1999, has no plans ``right now'' to scale back its golf sponsorships, Peck said in a telephone interview. The company's stock has dropped more than 74 percent this year, to $6.19 at yesterday's close, and GM has cut 53,000 union workers since 2005.

Because of that, Steinberg said in a telephone interview that he wants to find out if it ``makes sense to continue'' beyond 2009, when the contract expires.

``I want to see where they are, and they want to see where we are,'' Steinberg said.

He added that he wouldn't call his initial talks with Peck ``a renewal conversation.''

``It was an early conversation about the relationship and when we might begin to talk about if it makes sense to continue and whether there will be an extension,'' the agent said. ``That's the best way to put it. We haven't started any conversations about the future.''

Peck said the company has no desire to sever its ties with Woods, who recently topped BusinessWeek magazine's list of the ``Most Powerful People in Sports.''

Bag Logo

Woods, the winner of 14 major tournaments, carries the Buick logo on his golf bag and appears in print and television advertisements for the carmaker.

Buick has been involved in golf for 50 years and is the ``Official Car'' of the U.S. PGA Tour, golf's top circuit, under an agreement that runs through 2010. The company is the largest and original PGA Tour sponsor, according to Buick's Web site, and has agreements to sponsor the Buick Invitational in California and Buick Open in Michigan for two more seasons.

``Right now, we have no plans to make any changes,'' Peck said.

Tim Finchem, commissioner of the PGA Tour, said last month that the financial problems on Wall Street are a ``major concern'' and that golf's top circuit may be facing some ``real challenges'' in future years.

Like other companies that sponsor sports events, Peck said, Buick is taking ``a hard look at every dollar that we spend.''

`Save Money'

``Where we can save money, we're looking to save money,'' he said.

Detroit-based GM said this month that it would close sport- utility vehicle assembly plants in Ohio and Wisconsin two years early because of a slowdown in U.S. sales. The company also said it will slow production at three factories in Michigan and Delaware, affecting about 1,500 workers.

Even Woods, once considered a safe haven in sports sponsorships, isn't immune to the global economic crisis.

``It's a totally different world,'' said sports banker Rob Tilliss of Inner Circle Sports in New York. ``We're talking about the viability of banks. It's unprecedented.''

Neither Peck nor Steinberg would disclose financial terms of Woods's contract with Buick. He made $122.7 million in on- course earnings and endorsements in 2007, according to Golf Digest magazine.

Brand Help

``He does great things for our brand,'' Peck said. ``Where we feel there's continued return, we continue to spend. We still have to promote products, so there's still a need to advertise, we just have to do it more efficiently. He would rate high on the list of assets that we're pretty happy with being involved with.''

In the coming year, Peck said, Buick would be ``trimming back'' some of its spending on ``back of the house'' things, such as hospitality at sports events.

Woods caddied this week for John Abel, a 59-year-old contest winner from New Jersey, during a promotion for Buick at Torrey Pines Golf Course near San Diego.

The 32-year-old California native last played in June at Torrey Pines, winning the U.S. Open in a 19-hole playoff with Rocco Mediate. He then had surgery on his left knee.

Woods is ``very confident'' he will return to the course in time for April's Masters Tournament, although he won't take a full swing until 2009, he said in an interview yesterday with ESPN.

To contact the reporter on this story: Michael Buteau in Atlanta at mbuteau@bloomberg.net.

Last Updated: October 23, 2008 00:26 EDT