• by Joe Mandese , January 12, 2005

Seeing some writing on the wall, Havas' MPG and Euro RSCG units Tuesday dropped out of the review for Intel's $300 million global media and advertising account. The loss, which the agency described as inevitable, is the latest blow to the French-based agency group, which has suffered a spate of losses, and which is rumored to be on the verge of losing the $500 million U.S. media buying account for Volkswagen as part of a global consolidation by the automaker.

"It has become increasingly clear that Intel's drive towards business transformation would inevitably lead to a change in agencies," the agency said in a curt statement released late Tuesday. " After much consideration, Euro RSCG decided its talent and resources would be better focused on our current clients and the high-profile new business competitions we are involved in."

Earlier this week, London-based Sunday Times reported that Volkswagen has already shifted media planning and buying from MPG to Grey Worldwide's MediaCom unit, though that review was not expected to be completed until the end of February. Volkswagen had previously split its $1.4 billion media account between MPG and MediaCom, with MediaCom handling buys outside the U.S. A consolidation with MediaCom would be noteworthy for several reasons, including the fact that it is poised to be merged into WPP Group, which handle's Ford Motor Co.'s advertising and media buying.

Despite the string of losses, Havas has not been without some high-profile wins. Last year, it won the global consolidation for Air France's advertising, and last month it picked up retail stock broker Charles Schwab's account.