Publicis Groupe Launches Chemistri to Focus On General Motors Business, Develop Ideas Beyond Traditional Advertising

TROY, Mich., March 11 -- The agency formerly known as D'Arcy Detroit today takes on a new name and a new way of doing business, totally dedicated to building the brands of its General Motors clients.

The new organization, called Chemistri, is a unique marketing communications agency that consolidates global Publicis-GM relationships into one multi-disciplinary organization. Chemistri is an independent organization aligned strategically with Leo Burnett Worldwide and part of the vast Publicis Groupe. It is the first agency of this kind to focus exclusively on GM business. The agency's clients include Cadillac, Pontiac, GM Service and Parts Operations and several global GM operations. With origins back to The MacManus Company in 1911, the agency has served General Motors for more than 90 years.

"This is a historic day for our company," said Patrick Sherwood, CEO of Chemistri. "Changes in our industry, our agency and our client have converged, giving us the perfect opportunity to transform ourselves and fundamentally re-engineer how we operate across brands, businesses and geographies."

In September 2002, D'Arcy Detroit's holding company, Bcom3, merged with Publicis Groupe SA. Following the merger, D'Arcy Worldwide was folded into Publicis Groupe's other global agencies: Publicis Worldwide, Saatchi & Saatchi Worldwide and Leo Burnett Worldwide.

Aligning the capabilities of several Publicis marketing communication organizations -- offering expertise in public relations, advertising, promotions, Internet, diversity and other marketing specialties -- Chemistri will challenge the traditional "integrated marketing" model that often focuses only on translating the look and message of advertising into other marketing forms. Chemistri's model creates a true idea-neutral, multi-disciplinary approach by eliminating major barriers such as conflicting financial incentives that encourage departmentalized thinking. Chemistri is set up to provide cross-discipline teams the opportunity to develop total communications solutions, fusing creativity and practice expertise to create ideas that drive GM's brands forward.

"The path to integrated marketing has been littered with a myriad of empty and broken promises," said Sherwood. "Traditional agency organizations were not set up to eliminate the financial, cultural and territorial barriers to integration. Our model is different."

Chief Creative Officer Gary Topolewski summed up the creative process in this way: "The best idea wins. Our goal is to push the boundaries of conventional thinking and create ideas that radiate into every corner of a brand's world."

Chemistri brings together partner companies in a range of communications disciplines including: D'Arcy-Martin Group for regional marketing; Arc Communications in marketing services; Vigilante, AdmerAsia, Bromley and Double Platinum in diversity marketing; Semaphore in interactive and Leo Burnett in creative services. Also, it will leverage other important partnerships with GM Planworks in media planning and Hass MS&L in public relations.

The new unit reports to Roger Haupt, president and chief operating officer of Publicis Groupe. Haupt also serves as chairman of Chemistri. "Chemistri has been formed in close collaboration with GM," said Haupt. "They have partnered with us every step of the way."

C.J. Fraleigh, executive director of GM's advertising and corporate marketing, said, "I congratulate Publicis for taking this bold step and pursuing the challenge of inventing a new model. It's all about the idea ... and I'm looking forward to seeing great ideas from this new organization."

Chemistri will be based in Troy, a near suburb of Detroit, about 25 miles from GM's Renaissance Center Headquarters. Chemistri's reach goes well beyond Detroit. The agency is aligned with the creative staffs of its partner companies -- a combination that will bring both depth and breadth to its ideas. And the company will further leverage its partnership with Leo Burnett by tapping into its extensive creative resources and their global network.

Chemistri's Detroit headquarters also will serve as the global coordinator for international activities and the deployment of international resources to support GM assignments worldwide.

"We're putting in motion an ongoing process with a commitment to a new, idea-based way of doing business that will set us apart from our competitors and better serve our clients," said Sherwood. "This will happen over time."

Publicis Groupe SA is the world's fourth largest communications group, according to AdAge's ranking of April, 2002 as well as world leader in media counsel and buying, according to RECMA's ranking of June, 2002. Its activities span 109 countries on six continents.

Groupe activities cover advertising, marketing services, media counsel and buying, media sales and specialized communications. These include public relations, corporate and financial communications, ethnic and healthcare communications.

Publicis Groupe SA's services are offered through three autonomous global advertising networks: Publicis Worldwide, Saatchi & Saatchi Worldwide, and Leo Burnett Worldwide, as well as through its two multi-hub networks Fallon Worldwide and Bartle Bogle Hegarty, 49 percent-owned, and two global brands in media counsel and buying, Zenith Optimedia Group and Starcom MediaVest Group.

Web sites: www.publicis.com and www.finance.publicis.com