TWO AGENCIES FOR VOLVO CARS

Volvo Car Corporation has now selected the advertising agencies that will drive the Volvo brand name into the new millennium in the passenger car sector. Forsman & Bodenfors, a Swedish agency based in Göteborg, and an American agency, MVBMS in New York, will have joint responsibility for strategic coordination of Volvo's passenger car advertising throughout the world.

"Following a thorough review, we have decided to have two agencies cooperating globally, says Knut Simonsson Senior Vice President Marketing at Volvo Car Corporation. Forsman & Bodenfors and MVBMS (Messner Vetere Berger McNamee Schmetterer) both know Volvo well and have demonstrated that they understand our strategies and can interpret our strong brand identity in a proper manner.

The decision to go from having nearly ten agencies to two lead agencies means that Volvo Car Corporation is now taking a tighter grip on the interpretation of its advertising. The basic feeling will be the same, even though there will be room for variations in different markets and different cultures. That is why Volvo Car Corporation will continue to work with local agencies in Europe.

"Just as with the design of cars, our communications must have a distinctive approach that sets us apart from competitors, Knut Simonsson says.

Forsman & Bodenfors and MVBMS will globally supervise Volvo Car Corporation's future marketing communications. MVBMS will focus on the North American market, while Forsman &Bodenfors will focus on marketing communications in Europe.

"In a world of reduced product differentiation, the profile of a brand name is becoming increasingly important, according to Knut Simonsson. The brand name's "DNA" should be part of the customer's total perception of the company including product, service and distribution. Our external communications are both a symbol and a driving force in creating this distinctive DNA. Today's decision to appoint two leading agencies is therefore an important and natural step."