Chevrolet ad agency to cut 100 jobs

NEW YORK -- Chevrolet advertising agency Campbell-Ewald will dismiss as many as 100 employees as the auto retailer cuts costs, executives familiar with the matter said. 

The move, which would reduce staff by less than 10%, is due to drastic budget reductions at the General Motors division and the departure of other accounts, the executives said.  

Mark Benner, a spokesman for the agency in suburban Detroit, declined to confirm the figures, citing a policy to not comment on "forced adjustments due to scaled-down client work." He noted that "all businesses are magnificently challenged by our economy, and that affects our business as well." 

As of January of this year, the shop employed about 1,300 individuals, Benner said. 

A Chevrolet spokesman declined to comment on 2009 budget cuts and their impact on Campbell-Ewald.  

U.S. sales at Chevrolet, GM’s best-selling brand, have dropped 20 percent this year through November. Earlier in the year, record gasoline prices curbed demand for big SUVs and pickups such as the Silverado. Now the global credit crunch is reducing industrywide sales to levels not seen in a quarter century.  

Campbell-Ewald, owned by Interpublic Group, had revenues of nearly $240 million in 2007, according to Advertising Age statistics. It is one of several ad agencies that will be dealt a blow if the U.S. government decides not to bail out GM and Chrysler LLC. The two Detroit automakers have the biggest need for immediate cash. 

Some automotive accounts have fled the agency in recent years. This summer, Michelin North America moved its account to Omnicom Group’s TBWA without a review. That followed Campbell-Ewald’s loss of GM’s AC Delco.