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Euro RSCG/Fuel is to set up a London headquarters with approximately 20 staff to help service the $100 million global Jaguar account.

Euro RSCG/Fuel won the account last week, seeing off competition at the final stage from a WPP effort comprising JWT and Berlin Cameron/Red Cell.

London's M&C Saatchi and Leagas Delaney, and Kirshenbaum Bond & Partners in New York, were eliminated at an earlier stage.

Euro RSCG/Fuel will service the account from New York and London. The network has handled Ford's Volvo account from its Amsterdam agency, MVBMS.

Jaguar was said to be impressed with the network's work on Volvo and the decision to set up a London office for Euro RSCG/Fuel sidesteps conflict with Euro RSCG's French car brands, Peugeot and Citroen.

The appointment of Euro RSCG/Fuel closes the chapter on Young & Rubicam's four-year relationship with Jaguar; the car brand dropped the incumbent from the pitchlist in February 2005.

The brand had spent £17 million through Rainey Kelly Campbell Roalfe/Y&R in the UK annually.

Jim Heekin, Euro RSCG Worldwide's chief executive, commented: "We are excited to be working with Jaguar, one of the world's most renowned automotive icons. We look forward to leveraging its power and prestige by capturing the imagination of existing and potential buyers."

Ford, which bought Jaguar for £860 million in 1989, is reported to be investing £500 million in the brand to help fight heavy losses brought on by over-investment in product development and disappointing sales. Jaguar has also suffered from the weak dollar; the US accounts for around half of all sales. Global sales have been in decline since 2002 and last September Jaguar shut down its Browns Lane factory in Coventry, one of its three UK plants, resulting in the loss of 1,150 jobs.

Jaguar is preparing to unveil two new models. The Advanced Lightweight Coupe, which made its debut at the North American International Auto Show in Detroit, is a replacement for the Jaguar XK. It is also working on a replacement for the S-type.

MindShare continues to handle media for the account.