• by Joe Mandese , January 13, 2005

Calling it one of the "largest and most comprehensive alliances in the entertainment industry," German automaker Volkswagen Thursday unveiled a branded entertainment agreement that will incorporate its cars and brand names into films, DVDs, theme parks and other entertainment properties developed by NBC Universal.

Terms of the deal were not disclosed, but Volkswagen said it would support the agreement through its "international marketing and promotional efforts," presumably including media buys on NBC Universal's TV outlets. Both companies said they plan to develop "mutual marketing programs."

Havas' MPG unit handles Volkswagen's media in the U.S., while Grey Worldwide's MediaCom handles it overseas. However, Volkswagen is rumored to be considering a worldwide consolidation at MediaCom.

"Product Placement and the movie industry are a growing factor in car promotion and Universal Studios is the most consistently successful movie studio in recent history," stated Volkswagen CEO Bernd Pischetsrieder.

The agreement includes product placement, as well as Volkswagen's "presence" at Universal film premieres and home entertainment releases, as well as the exploration of original TV programming and on-air film promotions.