01 October 1997

CORDIANT SUBSIDIARY CMB KHBB has issued a writ against Vauxhall Motors for non-payment of £207,000 it claims is owing. The agency was hired in 1993 by Vauxhall on a fee basis to help launch the new GM Card. Initially, the fee was £50,000 monthly but was later reduced to £26k and then, under a new agreement reached last February, to £17k. However, in May this year, Vauxhall fired CMB KHBB and refused to make any further monthly payments, despite the agency’s contention that they are contractually due. Says Cordiant: ‘We believe Vauxhall has clear-cut contractual obligations it has yet to fulfil. Regrettably we have had no alternative but to resort to legal action to protect the agency’s commercial interests.’ Vauxhall was less voluble: ‘The matter is being handled by our lawyers’, it said.