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GM begins pounds 400m Euro media review.(General Motors)
General Motors is conducting a review of its estimated pounds 400 million pan-European media planning and buying arrangements just one year after completing a market-by-market pitch across the region.
The review involves the GM roster agencies Universal McCann, Initiative and Carat. Sources said the review was an opportunity for GM to evaluate its relationships with each agency and to consider if it can create savings and a better service by consolidating the business.
A pitch is expected this autumn, but it is unclear if non-roster agencies will be invited.
The Interpublic agencies Initiative and Universal hold the bulk of the business. Carat has the GM account in Germany while Universal works for GM's other major markets outside the UK.
The news is a blow to Initiative, the incumbent on the pounds 85 million UK account. It won the consolidated Vauxhall, Saab and Daewoo business less than a year ago and was awarded a one-year contract running from January.
Initiative has a long relationship with the Vauxhall brand, via Western Media, which held the account before its merger with Initiative in 2001.
If Initiative is forced to defend its UK GM business, this will mirror its position with Unilever, which in May called a pan-European pitch a year after ...
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