GM Eyes Chevrolet’s Global Makeover With Consolidated Ad Strategy

The world’s largest auto manufacturer, General Motors Co, has reorganized its advertising strategy, aimed at saving the company $2 billion over a period of five years.

Omnicom’s Goodbye, Silverstein & Partners, San Francisco, and Interpublic’s McCann Erickson Worldwide, N.Y.,  have come together to form a new company Commonwealth, as 50/50 joint venture, specifically to work on Chevrolet’s global account.

A statement made by McCann Erickson Worldwide, GM, confirmed that henceforth, the Chevy business will go to Commonwealth. “Commonwealth will be based right here in Detroit, and its only focus will be on strengthening and growing Chevrolet into an iconic global brand.”

Commonwealth has a rich quality of creative talent and a wealth of experience behind them. They will be responsible for the development of creative and innovative campaigns that will show Chevrolet as an iconic global brand all across the world. The appointment of Commonwealth comes close on the heels of choosing Carat as GM’s agency for its media planning and buying operations.

“We are delighted to be expanding our relationship with the dynamic Chevrolet brand and with General Motors,” said Nick Brien, chairman and CEO, McCann Worldgroup. Commonwealth will commence work with immediate effect most global regions, with the exception of China, India and Uzbekistan, where these activities will continue to be managed by local based agencies more familiar with consumer tastes and requirements.

It is expected that the new appointments will drive effectiveness in its marketing operations and more successfully build its brands around the world.  Earlier, Chevrolet was promoted by 70 ad agencies around the world.

GM global CMO Joel Ewanick said in a statement, “These agency consolidations are expected to create about $2 billion in savings over the next five years, 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.”

Kantar Media estimates GM spent $1.83 billion on U.S. ads last year with almost 60 percent of that used on Chevy, which makes up about 70 percent of GM’s U.S. sales.

Chevrolet sold 4.76 million vehicles globally last year and is likely to cross the 5 million mark this year with the introduction of mew models in market segments, where it did not have a presence earlier.