The car-maker says it wants to achieve more cost savings and bring further cohesion to its advertising. However, the changes will not extend to its major markets - Britain, the US, France, Italy and Japan.
The reconfiguration follows a pitch to Mercedes senior managers. Grey also pitched in a competition hosted in Stuttgart. The BBDO team was led by its worldwide chief executive, Andrew Robertson. As a result, BBDO has been awarded the task of adapting the work of Jung von Matt for local markets.
The Hamburg-based agency, which won the Mercedes creative account in June, will be the lead shop for the German, Austrian and Swiss markets, as well setting the tone of the international communication.
"What's driving this is a recognition that, in terms of brand empathy, it does not match the likes of BMW and Audi," an industry source said. "Also, there is a cost issue."