• Ad Age, Friday, December 7, 2007 12 PM

Regional General Motors dealer ad groups will once again pick their own creative or media agencies in a "back-to-the-future scenario," as Brent Dewar, vp-field sales, service and parts for GM in North America, describes it. GM's goal is more effective advertising at the local level.

GM eliminated dealer ad groups in 1999 only to re-form them in 2000. While participation was voluntary, the local marketing groups, or LMGs, had to use GM's national agencies and the automaker controlled the accounts. Under the new system, the agencies will report to the dealer groups--a move that should give the retailers more flexibility in their markets, Dewar says.

The dealers will have two options: Stay with the incumbents or select a new shop. Dewar said the dealer groups, however, will have to fund customized work from any new agencies themselves. But the national shops will still provide creative in a "tool box" at no extra cost to dealer groups that decide to hire another agency.

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