The business is currently split between Initiative and its sister Interpublic Group agency Universal McCann, with the former holding the £63m Vauxhall and £8m Daewoo accounts, and Universal managing Saab's £20m spend.
The motor giant is reviewing its media spend country by country, and the UK shortlist is being whittled down to two with a final decision due at the end of the month.
Sources confirmed that with GM bent on consolidation, it was decided that Universal would withdraw from the contest and help its sister agency with the pitch.
Others invited on to the shortlist include Starcom MediaVest, which handles the US account; ZenithOptimedia and Carat, which recently won the GM business in Germany, previously held by Universal. Universal continues to manage media spend in other countries, including France and Spain.
Vauxhall last held a UK media review in 1998 when Western Media, subsequently merged into Initiative, retained the account after a pitch. Last year, GM moved the Daewoo account out of Mediaedge:cia into Initiative, following its takeover of the motor company.
GM's UK ad agencies remain in place, with Vauxhall handled by Lowe and Delaney Lund Knox Warren & Partners. Lowe creates work for Saab and DFGW for Daewoo.
Universal and Initiative declined to comment.
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