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Volvo Cars is close to awarding its dollars 50 million pan-European

advertising account to Messner Vetere Berger McNammee Schmetterer/Euro

RSCG.

The move will give the agency, which is based in New York, lead global

agency status for the Volvo account.

A formal appointment is expected as early as this week, prompting

sources in London to question the future of Euro RSCG Wnek Gosper’s

relationship with PSA. The agency handles the advertising for Peugeot

and Citroen in the UK.

’The big question is how PSA will react to this,’ a source at a roster

agency said. ’It’s one thing to have an agency working in the States on

work that will run around the world, but Volvo is increasingly going up

against PSA’s cars. If Messner does not have agencies in other markets

it will have to use the resources of existing agencies in the network

and that’s a conflict issue.’

Messner Vetere already handles North America, while other Euro RSCG

agencies handle the account in Australia and some parts of Asia.

Brett Gosper, Euro RSCG’s chief executive, has denied that the network’s

relationship with Volvo will cause problems for PSA.

’Euro RSCG is a PSA network in Europe. Messner is not setting up a

network in Europe to handle Volvo and neither will it be using the

existing one.

All parties know the importance of the relationships involved,’ he

said.

The review was sparked in April when Volvo began talks with a number of

European networks about finding a new agency to drive creative for all

future pan-European car launches. The aim is to give the company a more

unified presence in the world’s largest markets.

The previous launch, for the V70, was handled by the Gothenburg-based

Forsman & Bodenfors, which had resigned the international account in

March this year. It will continue to handle the business on a local

level.

Abbott Mead Vickers BBDO handles the pounds 24 million Volvo account in

the UK. The appointment is not thought to affect that relationship.