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Fallon ad agency loses $200M Cadillac account

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Minneapolis ad agency Fallon and the iconic American luxury-car maker Cadillac have parted ways after a nearly three-year relationship, the Star Tribune reports.

The paper calls it a "stunning blow for Fallon" and notes that the agency once handled Porsche, BMW and resigned a Chrysler account to work with Cadillac and General Motors.

In a statement to the Star Tribune, Fallon CEO Mike Buchner said, “We are exceptionally proud of our Cadillac work and the phenomenal business results it achieved. The brand has momentum that it didn’t have when we took on the account almost three years ago and that will serve Cadillac well as it moves forward.”

But Strib reporter David Phelps also obtained an internal memo, in which Buchner writes, "This is an outcome we do not deserve, but a decision has been made."

Advertising Age has the full memo.

Fallon executives aren't talking, but some in the ad world have wondered if layoffs might be next.

Cadillac awarded its $200 million plus advertising account last week to a three-agency team from the Interpublic Group. The agencies, Detroit-based Campbell Ewald, Boston-based Hill Holiday and London-based Lowe, formed a hybrid agency called Rogue to handle the Cadillac account.

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