Jaguar calls £40m global pitch

The review is further bad news for Y&R, following the $300m Burger King and Kraft Foods losses.

Ann Fudge, the head of Y&R Brands, is under increasing pressure following the news that Jaguar is reviewing its £40 million global ad account.

The announcement comes just weeks after Y&R was dropped from the Kraft Foods roster following a global review. The network was already reeling from Burger King's decision to move its $300 million US advertising account after less than a year.

Fudge, piquantly, is a former president of Kraft's beverages and desserts division.

The Jaguar rethink comes as the beleaguered car manufacturer is forced to confront falling sales figures.

Recently, Jaguar took the controversial decision to cease production at its spiritual home, the Browns Lane plant in Coventry.

The review is part of a wider assessment of Jaguar's marketing relationships, and also includes its below-the-line advertising, which is handled by Y&R's direct marketing arm, Wunderman.

It is part of Jaguar's parent company Ford's consolidation within WPP networks.

However, media planning and buying, which is currently shared by MindShare and Mediaedge:cia, is not part of the process.

Y&R has held the global account for the past six years since winning a pitch against its parent company WPP's J. Walter Thompson and Ogilvy & Mather networks.

JWT's office in Irvine, California, is the lead agency on the business.

Jaguar spends £17 million in the UK on advertising by Rainey Kelly Campbell Roalfe/Y&R.

The car-maker has seen its market share dwindle in recent years - 122,000 Jaguar cars were sold worldwide in 2003, compared with its rivals Audi, BMW and Mercedes-Benz, which each sold more than one million units.

According to the Society of Motor Manufacturers and Traders, the figures represented a 1.7 per cent drop in sales from 2002 for Jaguar, while BMW and Audi saw their figures rise by 10 per cent and 8 per cent respectively.

The review, which is being led from the US, will be overseen by Jaguar Cars' managing director, Bibiana Boerio, who was appointed in July after a year-long stint as its director of strategy and finance for international operations.

A Jaguar spokesman said: "Jaguar can confirm that the contract for its global advertising is in review." He added that Jaguar hopes to make an appointment by March 2005. Y&R confirmed it intends to repitch. However, a shortlist for the pitch has not been revealed, as Jaguar has yet to appoint a consultancy to supervise proceedings.