The company that handles General Motors' media buying is replacing its CEO, say executives familiar with the matter.
GM said in March it was putting its media account into review. GM Mediaworks of Warren, Mich., a unit of Interpublic Group of Cos. of New York, has the account.
Mediaworks CEO Rick Sirvaitis was not part of the company's pitch to GM last month to keep the largest media account in the United States. Executives say they expect Mediaworks Managing Director John Miles to take the company's helm.
GM spent $2.51 billion last year to advertise in major U.S. media, according to TNS Media Intelligence.
Mediaworks negotiates advertising rates with broadcast, print and interactive media and buys most GM ads.
Publicis Groupe is competing with Interpublic for GM's media-buying business.
Publicis of Paris operates GM Planworks, which plans the mix of advertising for GM brands in various media. Planworks of Detroit is a unit of Starcom MediaVest Group of Chicago.
A GM spokeswoman said GM is likely to complete its review this month. Executives say GM expects it can cut its media-buying costs and get lower TV advertising rates.
GM's purchasing arm has gained more authority in marketing matters as GM has accelerated its cost-cutting efforts. Generally, the lowest-cost bidder wins GM's business if all other aspects of the bids are close.
GM Mediaworks and GM Planworks have feuded periodically since GM consolidated its planning account at Planworks in late 2000. GM denies that the two companies' operations have not meshed.
Critics have panned GM for giving responsibilities for media buying and planning to separate holding companies.
GM has said it wants a system of checks and balances.