Saatchis takes legal action over claimed ad fees for GM card

Saatchi & Saatchi is suing Vauxhall Motors for unpaid fees on advertising work for the car company’s credit facility, the GM card.

Saatchi & Saatchi is suing Vauxhall Motors for unpaid fees on

advertising work for the car company’s credit facility, the GM card.



The agency issued a writ on 24 October which relates to a deal forged in

1993 between the former Saatchis subsidiary, CME KHBB, and Vauxhall.

Saatchis claims Vauxhall pulled out of the deal unilaterally without

giving the required six months’ notice and is suing for unpaid retainer,

amounting to pounds 200,000.



A Saatchis spokesperson explained: ’We believe that Vauxhall has

clear-cut contractual obligations it has yet to fulfil. Regrettably, we

have had no alternative but to resort to legal action to protect the

agency’s commercial interests.’



Vauxhall has until Friday to either satisfy Saatchi’s claim or contest

proceedings. ’The matter is being handled by our lawyers,’ a Vauxhall

spokesperson said.



In 1996, KHBB changed its name to K Advertising, and earlier this year

it was folded into its Saatchi & Saatchi parent. It is understood that

Vauxhall terminated the agreement in May of this year, following a

decision to shift its promotional activity on its GM card below the

line, work that is now handled by GGT Direct Advertising. Vauxhall

declined to comment on the issue.



The latest dispute comes more than two years after Vauxhall’s bitter

wrangle with the direct marketing agency, WWAV Rapp Collins, in which

the car company demanded more than pounds 8 million from WWAV to cover

the costs of an aborted mailshot for its GM card. In turn, WWAV issued a

writ for pounds 2.5 million on outstanding fees.



The GM card rewards users with rebate points that can be used against

the cost of a new Vauxhall car.



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