Vauxhall to split Lowe's £55m creative budget

Lowe's relationship with Vauxhall has been dealt a severe blow with the announcement that the car client is on the look-out for a second agency to share its £55 million account.

Vauxhall, the UK's sixth-largest advertiser, is searching for a second roster agency through the AAR to work with Lowe. A shortlist of agencies has already been drawn up.

Dean Barrett, the marketing director of Vauxhall, said: "We have decided to look for another agency to support Lowe, which will remain in place as our lead agency."

The news follows Vauxhall's change in advertising strategy after Lowe's ads starring Griff Rhys-Jones failed to deliver sufficient sales. The campaign was pulled in April last year. Patrick Dunster, the head of advertising at Vauxhall, was unhappy with the campaign's performance.

Dunster said: "This is the beginning of a brand repositioning. We felt it was sensible to have another agency on the roster looking at this."

"The decision in no way reflects any dissatisfaction with the agency," Barrett insisted. "However, bearing in mind the volume of work and new projects which we are undertaking, we feel that it is only sensible to set up a roster of agencies to call on."

However, Vauxhall's major projects for this year consist only of the relaunch of the Vectra, for which Lowe has already created the campaign, and a repositioning of the Corsa model toward the youth market.

Chris Thomas, Lowe's chief executive, stated: "As Vauxhall's lead agency and long-time partner, we look forward to continuing to create the kind of advertising that will cut through in this crowded market."

It is not the first time Vauxhall, the UK's second-biggest car maker, has split its UK account: Lowe shared the business with Rainey Kelly Campbell Roalfe, which handled the Astra brand, until that agency was bought by the Ford network, Young & Rubicam, three years ago.

Vauxhall's decision will not affect media buying through Initiative Media, or retail advertising through Lowe Broadway.

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