Volkswagen hands Carat $5m brief

Carat secured the business ahead of three other agencies, incumbent Initiative Media, Ikon and OMD. Last year, Volkswagen switched its $5 million creative account from long-term partner Foster Nunn Loveder to DDB which reportedly won the business within hours of pitching. Carat's appointment was similarly speedy; it was signed up on the same day it pitched for the business.

Carat has also been shoring up its operation in the past month, launching a sponsorship, event marketing and hospitality division.

Volkswagen Group Australia national advertising manger, Duncan Harvey, said the changes to the Volkswagen roster were unrelated to the performance of previous incumbents. "Basically we're a new company in Australia and it is a Volkswagen policy to review the business so it was reviewed with no agenda, it wasn't because we didn't like the incumbents."

While Volkswagen cars have long been a feature on Australian roads, Volkswagen Group Australia did not premier until January 2001.

Prior to this, the cars were imported and distributed under the Inchcape brand.

Carat's assignment comes ahead of the likely rollout of a new Volkswagen line this year.

After years of absence, Volkswagen is testing the Skoda model for possible reintroduction under the Volkswagen umbrella.