The split with Batey occurred because "we are looking at a different way of doing things and this decision was made by the (DaimleChrysler Southeast Asia) marketing department, said Clara Ang, DaimlerChrysler Southeast Asia public relations manager.
Ang declined to comment further except to say that several agencies would be short-listed and that a key decision-maker would be Sharon Lee, DaimlerChrysler Southeast Asia head of strategic marketing.
Rod Pullen, Batey Group chief executive officer, said "even long-term relationships can hit difficulties".
"I consider us fortunate that we have worked for Mercedes-Benz in the past eight years and created work for them that has run locally, regionally and globally.
"While the chapter has closed with Mercedes-Benz Southeast Asia, we look forward to continuing to serve Mercedes-Benz through other relations in Asia, he added.
Batey still has the local Singapore account for Mercedes-Benz, while Batey Taipei and Batey Hong Kong work on Mercedes' local Taiwan and Northeast Asia regional accounts respectively.