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.
