Isuzu Fires Ad Agency That Created ‘Joe Isuzu’ : Marketing: The decision is yet another blow to the Los Angeles office of Della Femina McNamee.

The advertising agency that made fast-fibbing Joe Isuzu a household word--and American Isuzu a household name--was abruptly fired Thursday by the Japanese car maker.

“I hope they call me tomorrow and say, ‘We were lying,’ ” said Jerry Della Femina, chairman of the New York agency Della Femina McNamee, whose Los Angeles office created Isuzu ads.

Isuzu’s decision has left Della Femina’s Los Angeles office reeling. Besides losing Isuzu’s $75-million ad business, it also lost the $25-million Carl’s Jr. account. Unless the office quickly lands another big automotive client, extensive layoffs--of 50 to 75 employees--are expected soon.

“We will probably be a smaller agency,” said Peter Stranger, president of the office. After finishing 1990 with one of the best years in its history, the office has lost its two biggest clients in less than six months.

In Los Angeles, bad news in the ad business is becoming all too familiar. The recession has forced several agencies to close over the past year--most recently Keye/Donna/Pearlstein. Because of a perceived drop in the quality of local advertising, the largest local ad competition handed out 40% fewer awards last month than the previous year. And earlier this week, Carl’s Jr. was so unimpressed with the quality of advertising produced by Los Angeles agencies that it toted its ad business to a San Francisco ad shop.

Della Femina has had the Isuzu account for 11 years.

City of Industry-based Isuzu did not name a new agency, but the company will be hard-pressed to find a Los Angeles agency that can handle a car account. Most of the big agencies in town already handle rival American or Japanese auto makers. Meanwhile, Della Femina is already chasing after new auto clients--including Suburu of America, which recently placed its account under review.

Industry executives said they were shocked at the sudden dismissal. Compared to a year ago, Isuzu sales are generally better than many other Japanese auto makers.

“Isuzu is not making the agency change as a reaction to falling sales. On the contrary, our sales, while not robust, are better than most industry statistics,” said E. F. Kern Jr., general manager, in a statement. “Our challenge is to ready the company for the market ahead, new products and new business opportunities.”

Kern said Isuzu will soon introduce a replacement model for the Trooper sport utility vehicle. That will be the initial assignment for the new agency.

Executives familiar with Isuzu say the company was not unhappy with its advertising, but it was displeased with a lack of strong strategic planning from the ad firm. Isuzu has recently undergone changes among its top marketing staff, and such moves often lead to agency reviews.

But some say the car company should never have given Joe Isuzu the boot. Although the ads he appeared in were criticized for not boosting sales, they were remembered by most who saw them. “In an environment where no one could tell one car ad from the next, Joe Isuzu stood out,” said Dave Vadehra, president of Video Storyboard Tests, a New York ad research firm.

Should the agency have ever stopped running its popular Joe Isuzu “liar” ads? Said Stranger: “I’ll be second guessing that decision for a long time.”