No rest for the wicked during “Snowpocalypse 2010” as a few different sources have let us know over the last several days that Campbell-Ewald unit Velocity will lose the Chevy tier two dealer business by April 1, 2011. We’re being told that the business is shifting from the IPG shop over to an Omnicom agency, perhaps Retail 3, which the latter holding launched in March of this year.
We hear C-E CEO Bill Ludwig has announced the news to the Velocity staff and GM informed the dealers. According to Adweek, Velocity handles Chevy dealer business (worth $200m according to spies) spanning 3,000 dealers in 105 markets. We’re checking with Velocity on this, but suffice to say, it’s been somewhat of a rough patch heading into the holidays for the C-E camp, having endured major layoffs earlier this month already.
Update: Well, in an interesting turn of events, we received this statement and we’re checking with Velocity on the validity of it:
“Effective April 1, 2011, Velocity Marketing will become Agency 720 and operate under the Omnicom organization. U.S. International Media will support Agency 720 for Chevy LMA media buying responsibilities. Dan Fletcher is the Chief Executive Officer of Agency 720, and many of the Velocity employees you work with today will transition to Agency 720.
Chevrolet made the announcement this morning to all of the LMA presidents. So, it’s business as usual, and we will continue to support the Chevy LMAs and Velocity Marketing through March 31, then Agency 720 beginning April 1 with the same intensity and passion as we have for the past two years.”