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MediaVest Restructures GM Ops

GM is restructuring its $2 billion account with Publicis’ Starcom MediaVest Group in an effort to streamline costs and reduce expenses.

GM has also pulled planning and buying chores for GM’s local dealers; those duties will go to Martin Retail Group (another Publicis shop) and Velocity (a unit of Campbell-Ewald), writes Adweek. GM’s dealer associations spent $190 on measured media in the first six months of 2008, down 42 percent from the same period a year ago, per Nielsen Monitor-Plus, as auto sales have slipped significantly.

SMG plans to cut the approximately 100 people working on the local dealer business, as well as close to 50 others working on the GM account, sources say, for a total reduction of between 5 percent and 10 percent of the staff involved on the account. The changes were agreed upon by SMG and GM, and took place without a review.

Earlier this year, the GM planning and buying account was absorbed by SMG after 8 years as a separate entity know as GM Planworks.