General Motors Co. (GM:US), the world’s largest automaker, named a new advertising agency for its Chevrolet brand as part of reorganizing the company’s marketing efforts aimed at saving $2 billion over five years.
The Chevy business will go to Commonwealth, a newly created joint venture between Omnicom Group Inc. (OMC:US)’s Goodby, Silverstein & Partners and Interpublic Group of Companies Inc.’s McCann Erickson Worldwide, GM said today in a statement. Chevrolet, GM’s largest brand by unit sales, previously used 70 ad agencies around the world, the carmaker said.
“This is the first time that two large marketing communications holding companies have come together to form a single company,” Joel Ewanick, GM’s chief marketing officer, said in the statement. “Commonwealth will be based right here in Detroit, and its only focus will be on strengthening and growing Chevrolet into an iconic global brand.”
GM will look at the “Chevy Runs Deep” campaign with the intent of deciding its future by midyear, Ewanick said during a conference call with reporters.
“No decision has been made on ‘Chevy Runs Deep,’” he said. The company will examine “what do we do with the theme line. Do we need a theme line? And if it is, is it ‘Chevy Runs Deep?’”
Ewanick said the slogan has started to see “traction” in some markets outside the U.S.
Goodby had held Chevrolet’s ad business in the U.S. while McCann was the brand’s agency in many global markets, including Brazil and China, GM said. GM in January disclosed that Aegis Group Plc (AGS)’s Carat was selected as the company’s agency for media planning and buying.
The $2 billion in savings will occur over five years, Ewanick said in the statement, “with a portion used to take advantage of key global marketing opportunities and strengthen the focus on our global Chevrolet brand, and a portion hitting the bottom line.”
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