Kia Motor America parted with agency Goldberg Moser O'Neill, San Francisco. Dick Macedo, exec VP-marketing and sales, said that while Goldberg--the car company's first and only agency--has helped grow the brand, Kia now has decided to move to another shop for "business reasons.'' He cited the need for "strategy development resources'' for launching three new models in the next 12 months, including the abilility to handle dealers. Kia is in the process of negotiating with another agency for the account, Mr. Macedo said. Media spending is in the $75 million range, but fees are considerably lower than the once-standard 15% commission, said Fred Goldberg, chairman of Goldberg Moser O'Neill. Mr. Goldberg said his agency and Kia only last Friday had signed a contract covering 1999 because they were bogged down in talks over fees.
Copyright November 1999, Crain Communications Inc.