IPG takes Lowe man to court over loss of Mercedes business

The bitter divorce between Mercedes-Benz and the Interpublic Group is heading for the courts, after IPG issued a writ against the former account man who ran the dollars 125 million business at its Lowe & Partners/SMS agency in New York.

The bitter divorce between Mercedes-Benz and the Interpublic Group

is heading for the courts, after IPG issued a writ against the former

account man who ran the dollars 125 million business at its Lowe &

Partners/SMS agency in New York.



Marvin Sloves, the co-chairman of Lowe who retired at the end of last

year, stands accused of using his influence with Mercedes to persuade

the car maker to review its account out of the agency. The business was

this week awarded to Omnicom’s Merkley Newman Harty.



IPG claims that Sloves ’began to assist Daimler-Benz to take its

business away from IPG and place it with an agency with which Sloves has

established a relationship’, according to the lawsuit, quoted in The

Wall Street Journal. Sloves has denied the charges.



US reports say Lowe recognised that Sloves’ influence over the Mercedes

account was dangerously powerful, and that it was reluctant to move him

off the business as he reached retirement age. Sloves was made a

consultant on the account late last year.



Mercedes began the review last month, citing problems with Lowe’s

management and potential account conflicts.



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