VCCP has lost Hyundai’s £12m UK advertising business to M&C Saatchi. The South Korean car manufacturer has widen the remit of M&C Saatchi which already holds the pan-European account.
The agency will now work with Hyundai’s in-house advertising division Innocean.
According to VCCP, the decision was driven by Hyundai’s need to deliver increased cost efficiencies across Europe.
VCCP won the UK business in 2004 following a competitive pitch against Abbott Mead Vickers.BBDO.
Hyundai appointed M&C Saatchi earlier this year to its roster after awarding the agency the £25m pan-European launch of the car company’s i10 model. The agency created a television campaign to support its launch across major European markets including the UK.
Hyundai has traditionally struggled to compete with the larger car manufacturers. The company is one of the sponsors for the FIFA World Cup series.