Chrysler said it “will not renew” the contract of social-media agency New Media Strategies for the remainder of 2011 following an incident yesterday in which a staffer tweeted from the @ChryslerAutos account “I find it ironic that Detroit is known as the #motorcity and yet no one here knows how to fucking drive.”

On NMS’ website, CEO Peter Snyder posted a statement: “New Media Strategies regrets this unfortunate incident. It certainly doesn’t accurately reflect the overall high-quality work we have produced for Chrysler. We respect their decision and will work with them to ensure an effective transition of this business going forward.”

Chrysler would not make an executive available for further comment, but in its communications blog today, Chrysler Communications staffer Ed Garsten wrote: “Why were we so sensitive? That commercial featuring the Chrysler 200, Eminem and the city of Detroit wasn’t just an act of salesmanship.

“This company is committed to promoting Detroit and its hard-working people. The reaction to that commercial, the catchphrase ‘Imported from Detroit,’ and the overall positive messages it sent has been volcanic.”

[story via: AdAge]