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Chrysler Group Names PentaMark Worldwide New Advertising Agency

6 November 2000

Chrysler Group Names PentaMark Worldwide New Advertising Agency

    AUBURN HILLS, Mich., Nov. 3 The Chrysler Group announced
today it would consolidate all advertising for its brands under one agency --
BBDO Worldwide, a unit of Omnicom Group.  The new, exclusive agency will be
renamed PentaMark Worldwide, and in an unprecedented move, will give Board
representation to DaimlerChrysler Corporation.
    The multi-billion dollar account is believed to be the largest in the
automotive industry and, in its new configuration, will deliver significant
savings to DaimlerChrysler and its Dealer Advertising Associations.
    PentaMark will be responsible for global advertising for the Chrysler,
Jeep(R) and Dodge brands, as well as non-product Chrysler Group advertising.
As in the past, media responsibilities will be managed by PentaCom in North
America and by DCMA for the rest of the world (except Germany).
    The announcement follows a two-month agency review during which
DaimlerChrysler asked its two major agencies, BBDO Worldwide and FCB Worldwide
(a subsidiary of True North Communications) for proposals to consolidate the
business and redesign the communication process.
    As part of the new partnership, the Chrysler Group account will be managed
by a single agency solely devoted to Chrysler business with separate internal
divisions for Dodge cars and trucks and the Chrysler and Jeep brands.  There
will also be separate field groups to service the Dealer Advertising
Associations (112 in the U.S. alone) throughout the world.  Significant
efficiencies will be realized in consolidated costs related to overhead,
production, media buying, human resources and other "back office" operations.
    "This is taking supplier partnerships to a new level," said Arthur "Bud"
Liebler, Senior Vice President, Chrysler Group Marketing.  "We have always
looked upon our agencies as partners in our Extended Enterprise, and now with
board representation, we'll have more in-depth understanding of the agency's
issues and how to deal with them.
    "At the same time, by better understanding the whole range of the agency's
capabilities from the inside, we'll be better able to help the agency help
us," Liebler said.  "Bottom line, this new arrangement is paradigm breaking
and will allow for the strongest possible partnership for both Chrysler and
PentaMark," he said.
    According to Liebler, both agencies presented equally compelling proposals
for consolidation.  "We've always said this wasn't about the creative product
or account teams.  We were happy with both.
    "This was all about which partner would provide the greatest long-term
strategic solutions and resources to lead us into the future.  And, at the end
of the day, we expect a number of the important players on the FCB team to
move over to PentaMark to form a whole new entity," he said.
    A 180-day termination clause in both of the Chrysler Group's current
contracts will enable BBDO and FCB to transfer their existing projects to the
new agency.  Chrysler hopes the transition can be completed in less than half
that time.  Also, members of the PentaMark management team will be named
during this period.
    "PentaMark represents a new paradigm in automotive advertising," said
Liebler.  "Eight years ago, we were the first in this industry to consolidate
media planning and buying in one entity, and it has worked so well that some
competitors are now copying our formula.  We're confident that this new, all-
under-one-roof approach will also become a benchmark in the industry."