General Motors, the world’s largest automaker plans to save about $2 billion the next five years by centralizing global advertising for its Chevrolet brand.
The U.S. based automaker said Tuesday that Goodby, Silverstein and Partners will join with New York-based McCann Erickson Worldwide to form a new company to handle most of Chevy’s ads.
“This is the first time that two large marketing communications holding companies have come together to form a single company,” Joel Ewanick, GM’s chief marketing officer, said in the statement.
“Commonwealth will be based right here in Detroit, and its only focus will be on strengthening and growing Chevrolet into an iconic global brand.”
Before the change, Chevy had 70 agencies worldwide. Commonwealth will handle advertising in all markets but China, India and Uzbekistan, where GM has joint ventures, the company said.
GM also has picked Carat as the agency that will buy television time and other media across the globe.
GM hopes to use part of the savings to boost Chevy marketing, but some will go to bottom-line profits.
Shares of General Motors Co., which owns the Chevrolet brand, fell 13 cents to $25.45 in afternoon trading. Interpublic shares rose 9 cents to $11.62. Omnicom shares fell 4 cents to $50.96.