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Chrysler owes Ad Agency BBDO $58 million.

April 30, 2009

BREAKING : Ad Agency BBDO Detroit owned by Omnicom Group is owed $58 million in the bankruptcy document, that you can read here

It’s worth noting, when your second largest creditor is your ad agency, exactly what was Chrysler spending their money on… seriously… like this company spent everything they had on advertising… and nothing on R&D …. no wonder they are where they are… in bankruptcy.

They even listed Peter Arnell’s Peapod in the bankruptcy documents…. the POS golf cart… that will never get off the ground… especially now..

It is unlikely that advertising agency BBDO will receive the complete funds, if any, and to make matters worse it appears that BBDO might even lose the account as per the rumors on the street.

$58 million dollars… it’s enough cash to force all sorts of layoffs…. and those layoffs most likely will be expected. We are unsure if that is just their billable fees, or if that is hard dollars allocated out of the ad agency for media spends, as BBDO Detroit has not gotten back to us prior to this publishing. If it’s hard dollars allocated out of the agency, then the chances are the layoffs will be far more severe… and it’s our speculation that that is exactly what the bulk of the money is.. leaving BBDO holding the bag for Chrysler’s bankruptcy.

We actually expect Omnicom to go into the bailout line after this one.

grand-theft-auto-bailout-lg

Written by TheFounder · Filed Under Advertising Agency News 


Comments

  • http://www.tribbleagency.com/?p=4942 BBDO Minus Chrysler leaves very little | Tribble Ad Agency : The Advertising Agency of Record

    [...] EDIT: There is a part 2 to this, as Chrysler owes Ad Agency BBDO $58 million as per bankruptcy documents. [...]

  • http://www.tribbleagency.com/?p=5035 Obama cuts Chrysler’s advertising budget in half | Tribble Ad Agency : The Advertising Agency of Record

    [...] however the Obama auto-industry task force gave it only half that. This is to be expected, as we have reported earlier that Chrysler owes Ad Agency BBDO $58,000,000. Omnicom Group is listed as it’s second largest [...]

  • http://www.tribbleagency.com/?p=5055 GM notifies ad agencies they’re out of business | Tribble Ad Agency : The Advertising Agency of Record

    [...] auto industry spends massive amounts of money on Advertising, for example, in the Chrysler bankruptcy document they listed BBDO / Omnicom Group as their second largest creditor. This is high and above any other [...]

  • http://industry.bnet.com/advertising/10002205/ipgs-gm-bankruptcy-credit-line-explained/ IPG’s GM Bankruptcy Credit Line Explained | BNET Advertising Blog | BNET

    [...] Interpublic’s change to its credit availability if General Motors goes bankrupt is disconcerting, coming in the wake of news that Chrysler has left BBDO on the hook for $58 million. [...]

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