Serving as an illustration of how the failure of the Detroit Three could impact other areas of the economy, Campbell-Ewald – Chevrolet ’s ad agency – announced that it will be cutting up to 100 jobs. The job cuts are a direct result of General Motors’ reduced spending.
According to Automotive News, Campbell-Ewald employed about 1,300 workers as of January 2008, with the most recent cuts accounting for less than 10 percent of the agency’s staff.
Although Campbell-Ewald is owned by Interpublic Group, which generated nearly $240 million in revenue last year, the failure of either Chrysler or GM would be catastrophic to the ad agency. Over the past few years Campbell-Ewald has lost accounts with Michelin and AC Delco, leaving the company more susceptible to downturns in the Big Three’s operations.
Depending on which study you read, the failure of one or two of the Detroit Three would lead to the loss of between 1.5 million and 3 million jobs, with companies like Campbell-Ewald bearing a significant brunt of those losses.
