This is a big deal to the folks in Boston who have nurtured VW's current image. Hopefully VW won't stint the creativity 
seen so clearly from Mini's campaigns. I'm looking forward to this! 
VW replaces ad agency with Mini's firm
By Jamie LaReau
Automotive News / September 06, 2005
DETROIT -- Volkswagen is replacing longtime advertising agency Arnold Worldwide with Crispin Porter + Bogusky of Miami. Crispin Porter is known for its work on BMW's Mini account.
Crispin Porter will take charge of all advertising and marketing for the VW brand account, effective Dec. 5. Crispin Porter resigned the Mini account on Tuesday, effective in 90 days, said Jeff Hicks, CEO and partner of the agency.
Boston-based Arnold has been VW's ad agency for 10 years, said Ron Lawner, Arnold's chairman and chief creative officer. He said the agency received a call from Volkswagen of America Executive Vice President Len Hunt, who heads the VW brand, this morning terminating the relationship.
"I was surprised," Lawner said. "That account meant an awful lot to this agency. It's very traumatic."
Hunt said it was a difficult call to make after a 10-year partnership. "I stressed how happy we've been with them but that we wanted to go in a new direction," he said.
That new direction includes redirecting advertising dollars away from traditional TV and print toward more viral, event-driven and online advertising, Hunt said.
"We've begun to realize the world's changed a little bit," he said. "Today, it's not so much about communication with people; it's about connecting with them."
A call to BMW of North America LLC was not returned this morning.
In a statement to the press, Hunt said VW needs to take "bold steps to turn this business around in the U.S. and Canada" and is reviewing all aspects of the business. VW's U.S. sales have struggled this year. The brand's August U.S. sales inched up 1.6 percent compared with August 2004. U.S. sales for the first eight months of the year, however, are down 19.1 percent, compared with the year-ago period.
"With the addition of CP&B on our team, we'll now be equipped to maximize our marketing efforts," Hunt said.
VW's director of brand innovation, Kerri Martin, had been Mini's marketing communication manager until March 15 when VWoA hired her. Hunt said Martin did influence the decision to replace Arnold. He said she worked with Crispin Porter when she was at Mini and believes the agency is good at the grass-roots kind of marketing that VW wants to shift to.
Lawner said Martin probably wanted the change.
"It happens in our business," he said. "The car market is not great, but the saddest part, besides working for a brand for a decade that I loved, was that we have so many creative new campaigns coming out for the Passat and the Beetle."
Crispin Porter's Hicks said Martin wasn't the sole driver for the move.
"We did work with her, but if you talk to VW, it's a decision that was taken by the entire VW team," Hicks said. Crispin Porter worked with Mini for five years and launched the brand in the United States.
Hicks said VW has been known for strong advertising. But, he said, the effort to turn Volkswagen around is attractive.
"VW is in a transition period, and we like to get involved in brands that are in the middle of a turnaround," Hicks said. "Spiritually, this agency loves a challenge."
VWoA spent $417 million on advertising last year, according to TNS Media Intelligence, a company that gathers information on advertising and marketing. Mini spent about $22 million in advertising last year.
Lawner was not sure of VWoA's reasons for ending the relationship. He said: "I don't know what reason they would terminate a relationship with one of the best ad agencies in the business." He is confident another car manufacturer will contact Arnold. "We've broken new ground with VW," he joked, "And now we're available."
