Volvo Cars places global creative account under review

Article by Anita Panait, on June 7, 2013

Swedish carmaker Volvo Cars has placed its global creative account into review. Volvo said it is looking for a global agency that can "focus and strengthen the brand communication worldwide." Volvo has invited its current creative agency, Arnold Worldwide, to defend its hold of the carmaker’s creative account. Volvo said the review does not affect Arnold's account in the United States.

The carmaker is hoping to select a creative agency to hand its global account this fall. In a statement, Volvo senior vice president of sales and customer service Alain Visser remarked that the carmaker is in a time of transformation, with an aim to further enhance brand perception through innovation, a new model program and an improved customer interaction. He said that it is good time to review Volvo’s future needs in order to “sharpen its brand communication moving forward."

The last time Volvo changed its agency relationships was in December 2011, when it deviated from the auto industry trend of "team" agency approach. It got rid of its "Team Volvo" structure that was a collaboration between Arnold Worldwide, SapientNitro and then-known as EuroRSCG 4D.

Volvo’s creative budget is relatively small compare to Ford Motor Co. and General Motors, having spent only $80 million on US advertising in 2012, according to Kantar Media. Volvo is currently falling victim to sales decline, posting a 6-percent drop in global sales in 2012.

The carmaker, however, was able to log a 1-percent increase in US sales in 2012 to 68,117. Volvo, however, suffered a 6-percent drop in US sales in the first five months of 2013 to 25,900 units, according to the Automotive News Data Center. [source: automotive news - sub. required]

Topics: volvo

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