WPP wins VW North America as car maker cuts its advertising network

WPP wins VW North America creative account

Volkswagen (VW) has awarded WPP the North American creative account for its namesake VW brand as the company aims to reduce its global network of agencies from 40 to three.

Omnicom will be responsible for Europe and South America, and Cheil will continue to handle China, according to a press release.

Interpublic's Deutsch held the North American account since 2009. The review only covered the flagship VW brand.

VW plans to improve its marketing efficiency by about 30% by 2020 while keeping its marketing budget at about €1.5bn. Jürgen Stackmann, the board member responsible for sales of the Volkswagen brand, said the brand will be managed in a leaner, more centralized way.

"Thanks to our more focused agency landscape and the expansion of our digital activities, we will become significantly more efficient. The far-reaching transformation of Volkswagen, which will also become evident to our customers next year with the world premiere of our ID, will fundamentally change our marketing," Stackmann said.

Starting in 2019, VW will pool its marketing activities in four new powerhouse markets: Berlin, New York, Sao Paulo, and Beijing.

VW also announced it will launch a new brand design next year, which will "probably be presented in the spring."

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