Cordiant faces new Hyundai blow
TROUBLED marketing services group Cordiant is tipped to lose its key $130 million (£92 million) account for Hyundai cars in North America after a review by the motor manufacturer.
The South Korean car account is a crucial part of Cordiant's worldwide operation. It handles the business in more than 20 countries.
Last week, Cordiant's Bates agency lost the mediabuying part of the Hyundai account to rival British media group Aegis. Now Cordiant sources suggest it is resigned to losing the creative account as well.
A Bates executive said: 'There is some internal politics going on at Hyundai and we don't think we will keep it.'
Cordiant has issued a series of profit warnings. It is trying to renegotiate the terms of a $400 million bank loan facility and more than 1,000 staff have been laid off in the past year.
Michael Bungey, Cordiant's chief executive, said: 'Hyundai is a significant client for us across the world. But the creative account is split in the US between the factory account, which is up for review, and Hyundai dealers' accounts, which are not.
'Our work has been very successful. Hyundai now has a 2.5% share of the US car market from zero when we started.'
