San Francisco Agency Wins Isuzu Account : Advertising: The company, Goodby, Berlin & Silverstein, will open an office in L.A. and hire up to 30 people.

American Isuzu Motors on Friday parked the creative portion of its $92-million ad business at a San Francisco agency that will quickly open a Los Angeles office to design the auto maker’s new ad campaign.

The winning agency is Goodby, Berlin & Silverstein, a suddenly hot ad shop that is fast gaining national recognition for its creative flair. Within weeks, the agency will open a temporary office in West Los Angeles while it searches for a permanent Southland location. Upwards of 30 employees are expected to be hired from the Los Angeles market.

The agency selection by American Isuzu, based in City of Industry, comes at a critical time when both the advertising and automotive industries are in the doldrums. Some marketing experts see this selection as part of a continuing trend away from conventional automotive advertising.

With many major East Coast ad agencies already handling big auto clients, some smaller shops--mostly on the West Coast--are suddenly getting a shot at the car business. And the advertising they create may eventually change the look of all automotive advertising.

“These small agencies have something to prove,” said Jim Hillson, senior vice president at the Beverly Hills research firm Phase One. “It’s the David and Goliath story, and their creative work has to be better than the big boys.”

In just the past year, car makers have increasingly turned to smaller ad shops.

The difficult task at hand for Goodby Berlin will be to follow in Joe Isuzu’s footsteps. The ever-lying Joe Isuzu character was created by Isuzu’s former agency, the Los Angeles office of Della Femina McNamee. But Joe was banished from the car maker’s advertising nearly a year ago, when company executives realized that while people were laughing at their ads, they weren’t buying enough of their cars.

“From an awareness standpoint, Joe was very, very positive,” said Jerrold G. O’Connor, vice president of marketing at Isuzu. “But I’m not sure Joe built a lot of equity in the product. That’s what we’re looking for in the ‘90s.”

Although Isuzu was one of the few Asian auto makers to see vehicle sales--particularly trucks--improve last month, the company is still unhappy with the slow growth of its passenger car sales.

Isuzu had previously announced that its advertising time and space will be purchased by the New York media buying firm SFM Media Corp. The first campaign to be created by Goodby Berlin will hit the airwaves in spring of 1992.

Meanwhile, Goodby Berlin suddenly finds itself with its two largest clients based in the Southland. Earlier this year, the company walked off with the $25-million Carl’s Jr. ad business.

Andy Berlin, a founding partner of the firm, will be moving to Los Angeles to head up the office. But he said most of the office will be staffed out of Los Angeles.

“This is not a case of a San Francisco agency taking business away from Los Angeles,” he said. “We’re becoming more of a Los Angeles agency.”