GM drives $200m Cadillac account out of Leo Burnett

by Staff, Brand Republic 27-Jun-06, 09:00

NEW YORK - General Motors has taken its estimated $200m (£110m) Cadillac account out of Leo Burnett in the US after 70 years and moved it into Modernista, an independent ad agency in Boston.

Cadillac has been handled by Leo Burnett out of its Troy, Michigan, office since 1936 and has now been passed into Modernista, which currently handles GM's Hummer brand. According to TNS Media Intelligence figures, GM spent $225.3m on the Cadillac brand in 2005.

The shift of the Cadillac account was first signalled in March when GM awarded Modernista a creative project for Cadillac models such as the CTS sedan.

Modernista already handles work for GM's Hummer brand, which it has worked on since 2000. It adds to that Cadillac's CTS sedan, SRX crossover, performance V-Series models and other unnamed cross-brand projects.

The loss of the account will come as a major disappointment to the Publicis Groupe-owned agency. Jim Moore, president of Leo Burnett Detroit, said that the agency regrets the loss of the business saying that it was "a major piece of business". The loss of the account could lead to redundancies, although no decision has yet been made.

Despite the loss, Leo Burnett will continue to handle GM projects including the Pontiac brand, GM Service and Parts Operations and GM Goodwrench.

In addition, the Detroit offices of Leo Burnett and Interpublic Group's McCann Erickson will be responsible for local dealer advertising involving the Cadillac, Hummer and Saab luxury marque.

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