After more than 30 years with DDB Needham in Canada, Volkswagen Canada has consolidated its national advertising with Volkswagen of America and its agency, Berlin Cameron Doyle.
The u.s. agency will also be responsible for the Canadian media buy.
vw’s annual budget is estimated at $20 million.
Five Canadian firms will continue to handle regional ‘and dealer needs.
Gee Jeffery & Partners of Ontario will be responsible for creative and regional media buys for Ontario and Eastern Canada.
Moreland & Associates of Vancouver has the assignment for Western Canada, and PALM Publicite Marketing of Montreal for Quebec.
Also in Toronto, Terry O Communications of Toronto handles the ethnic Chinese market and Exhibits International trade show needs.
Darryl Lindberg, president of DDB Needham since Oct. 1, says the consolidation is disappointing, but not unexpected.
‘After Volkswagen consolidated [marketing operations] in the u.s. this past summer, the next logical move was for them to do something like that,’ Lindberg says.
‘Obviously, we’re very sorry to see them go, but I think from their standpoint, it was the right thing to do,’ he says. ‘It has nothing to do with us, but how they’re viewing their business.
‘All we can do is wish them good luck in what they’re doing.’
Lindberg says there will be staff cuts and a restructuring of the agency with a loss of this magnitude.
Creative for the national account has been handled by Bruce & Myers Creative Directions of Toronto, which signed a two-year contract with DDB Needham to handle the assignment before it had a chance to open its doors in the summer of 1993.
Porsche advertising in Canada is also changing hands.
DDB Needham also had that assignment as part of the vw business.
The new Canadian distributor of Porsche has moved the account to The Coyote Marketing Group of Toronto.
The distribution agreement between Porsche and Volkswagen Canada expires Jan. 1, 1995, and will be taken over by Porsche Cars of North America. PS
