As a result, industry sources predict DDB will shutter its Beijing office and interactive arm DDBi in Beijing this month once the loss of the account is confirmed. It is understood that the car manufacturer did not call for a pitch, but decided to expand its long-standing ties with Grey, which grew from working with the group's media agency MediaCom.
Industry sources also said that Grey had undertaken ad hoc work on developing Volkswagen's communications strategy in the past two years. Grey declined to comment on the realignment. Volkswagen's Beijing operation deals mainly with the marque's imported brands, and is separate from the car-maker's Shanghai joint venture with Shanghai Automotive Industry Corporation, which produces the Santana and Polo.
Sources said they would not be surprised if DDB closed its Beijing office, adding that the agency did not have major corporate clients to sustain its operations. A media chief added that DDB's departure was symptomatic of the difficulties in operating in Beijing, a market overshadowed by Shanghai. "If you run a decent operation in China, it had better be in Shanghai."
