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Goodby and McCann Form New Agency to Handle Chevy in Global Creative Consolidation

Commonwealth is a 50/50 joint venture
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Agencies at two rival holding companies have become partners in a new company, Commonwealth, formed to work on Chevrolet's global account. Omnicom’s Goodby, Silverstein & Partners, San Francisco, and Interpublic’s McCann Erickson Worldwide, N.Y., have signed on to the 50/50 joint venture after a creative review to consolidate the global business for the General Motors brand.

In the review launched last autumn, GM roster shops Omnicom, Interpublic, Publicis Groupe and Cheil Worldwide put forth proposals to the auto marketer.

Chevrolet, GM’s largest brand, previously worked with 70 global agencies. The creation of the new Detroit-based Commonwealth agency follows the recent selection of Carat as GM’s agency for media planning and buying.

“These agency consolidations are expected to create about $2 billion in savings over the next five years, with a portion used to take advantage of key global marketing opportunities and strengthen the focus on our global Chevrolet brand, and a portion hitting the bottom line," GM global cmo Joel Ewanick said in a statement.

GS&P has been since 2010 the lead creative agency on Chevrolet in the U.S.—the brand’s largest market—  and is behind the "Chevy Runs Deep" strategy. McCann Worldwide has overseen the brand in many global markets including Mexico, Canada, Brazil, India, Japan, China and Latin America (Brazil and China are just behind the U.S. as Chevy's largest markets). Commonwealth will now handle creative in most global regions except for China, India and Uzbekistan, where marketing efforts will continue to be handled by agencies that have been working on the brand in those countries.

Commonwealth will be managed by an eight-person global advisory board, with assignments handled through global hubs in Detroit, Milan, Mumbai and Sao Paulo. The agency's board includes GS&P co-founder Jeff Goodby who is Commonwealth’s creative chairman; Linus Karlsson, McCann’s chairman, chief creative officer of N.Y. and London; Washington Olivetto, chairman at WMcCann Brazil and CCO McCann Worldgroup Latin America; and Prasoon Joshi, president, McCann Worldgroup South Asia.