WIESBADEN, Germany - HMS & Carat here has retained the E158.5 million PSA/Peugeot-Citroen advertising account in Germany.
The account had been in jeopardy after Carat International was appointed last month to handle rival French automaker Renault across Europe from the beginning of next year.
But now, after weeks of negotiations, PSA has agreed to delete from its contract a non-compete clause that would have prevented the media agency from handling the E170 million German Renault business.
For its part, Renault is reported to be unconcerned about Carat's tenure of other car accounts.
PSA appointed Carat in Germany in early 1999. Its contract runs until December 3, 2001.
French car companies are heavy advertisers in Germany. Together, PSA and Renault have a 10.7 percent share of the German new-car market.
Meanwhile, Carat is also involved with a third car account: Serviceplan's media arm, Media-Plus, with whom it has a working relationship, handles BMW.