VW Troubled By NBC Uni Deal

Volkswagen AG's new Touareg 2 might snatch thestatement. “Universal has facilitated many
limelight near the end of “The Bourne Ultimatum,”successful collaborations between VW and
the Universal Pictures' upcoming film. In the movie, thefilmmakers, resulting most recently in significant
Touareg is involved in a nerve-racking major chaseintegration into 'The Bourne Ultimatum.'“
scene where it flaunted its enviable performance.“In the first two years of the relationship, VW has
As for “Bourne,” VW is basing the introductionleveraged 'King Kong' and 'The Bourne Ultimatum' to
of its updated Touareg 2 model on the film, with acreate significant global marketing campaigns. An
multimillion-dollar campaign including TV, print and onlineaverage of one global campaign a year, especially at
ads. This is to bolster enhanced Volkswagen Touaregthe beginning of such a large alliance, is, in our opinion, a
parts incorporated in the redesigned sport utility.fantastic track record,” was added to the
But the automaker’s executives are dismayed withstatement.
the overall marketing partnership that the companyVW expects to spend roughly $40 million over the
entered with NBC Universal in May 2005. Thethree-year deal. But sources said that the automaker
“Bourne,” which will be shown August 3, is thehas the option to extend the term for two years.
eleventh movie placement for VW. But according toBiswurm said that VW has not decided whether it will
company sources, the film is only the second that hasexercise its option to extend the contract for a full five
met the German automaker’s expectations. Theyears. “That decision hasn't been made yet,” he
other film, “Knocked Up,” a comedy set to arrivesaid. “I think the problem is a systemic studio
in theaters June 1, also is commended by VW.weakness, and Universal has done a number of things
Sources said that all the other placements VW hasrecently to address those weaknesses.”
had in Universal films have not been sufficiently“Some of the films discussed in the second year of
memorable or significant. “The placements we'vethe contract are still being produced, and Year 3 is still
had so far are not up to the standard we hadahead of us, so we really only have the first contract
expected when getting into this deal,” said Martinyear to make our judgments on at the moment,”
Biswurm, the international entertainment marketingBiswurm added.
manager at Volkswagen.Despite the fact that the automaker is dismayed with
Meanwhile, Universal said that it is “proud” tothe results of the deal, VW at least believes it did not
have “successfully placed” 21 VW-brandoverpay for what it has received so far from the pact.
vehicles in 17 Universal, Focus and Rogue films totalingUniversal declined to give terms of the alliance.
$990 million in global box-office in the first two years of“What we've spent so far is commensurate with
the companies' alliance. “VW has been integratedwhat we've received and what we expect to receive
into 56 Universal premieres and events and has had abased on films in the pipeline,” Biswurm said.
brand presence on nearly 40 million Universal, Focus“Until recently, the placements have been marginal.
and Rogue DVDs globally,” the film outfit said in aThat weakness is a cause for our disappointment.