Related Story:Struggling Motorola Restructures Agency Relationships
Handset Maker Close to Naming Ogilvy, MindShare to Lead 'Partnerships'
Carat's decision to resign the account was termed a "mutual parting" by CEO Sarah Fay. She declined further comment. But some executives familiar with the situation said the two sides had trouble reaching a contract because Motorola, under increasing pressures, had dropped its budget and the fees it was willing to pay to have the account serviced.
Carat handled offline and online planning, out of home and search.
Motorola CMO Casey Keller said last weekend that he is in the process of realigning agencies and is considering consolidating his media buying at MindShare.
The news comes as the marketer is reported to face another possible push by investor Carl Icahn to spin off Motorola's mobile-phone business. Its business-to-business operations have been successful. In May, Mr. Icahn unsuccessfully made a run at a seat on the board.
A Motorola spokeswoman did not respond to questions by deadline.
Carat's work for the Razr 2 launch included the making Motorola the first presenting sponsor and the first display advertiser to partner with Twitter, the mobile blogging service. The campaign also included ads on Facebook, MySpace as well as Yahoo, the New York Times and Wall Street Journal.