Attrell Hyundai

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Rekindle your passion with cars that set your heart racing - March 21, 2009

Sponsorship important to new vehicle sales

There's always been a strong connection between sports car racing and the new car industry.

Automobile manufacturers recognize the benefits of supporting various car racing events (and teams) to promote brand awareness and to increase sales at new car dealerships.

This connection was first realized in Europe in the early 20th century. By the mid-1950s, the Big Three (General Motors, Chrysler and Ford) began to include car racing promotions as part of their marketing and branding efforts.

In his book, Sports Car Racing & Rallying in Canada (1951-1991), author David A. Charters writes: "By the mid-1950s, the Big Three adopted a slogan `Race on Sunday, sell on Monday.' That expression has since become a catch phrase within the auto industry."

Charters recounts a story about a car race that took place in Florida in 1975. The race was won on a Saturday by a driver named Ed Leavens, who drove an MG. Two days later, on Monday, Toronto-area new car dealers sold 13 MGs.

The following year, a winter rally race was won by an Austin A-40, which resulted in a 45 per cent jump in Austin sales within the next month.

Today, sponsorship of car racing by automobile manufacturers has grown to hundreds of millions of dollars per year.

In light of the worldwide recession, many automakers are reviewing their annual racing budgets. This is understandable, given that precise data linking car racing sponsorship with new car sales and customer retention is tenuous at best.

Still, from what I'm hearing in the industry, car racing sponsorship remains relatively strong at the corporate and dealership levels.

In Canada, one race series that has generated a lot of corporate, dealership and fan support of late is the Castrol Canadian Touring Car Championship (CTCC), Presented by Toyo Tires. The CTCC is Canada's premier touring car series, featuring two categories - Super Touring Class and Touring Class.

In just two years, as a professional race series in Canada, CTCC has shown impressive gains in driver participation, corporate sponsorship and fan support. The races attract drivers from across Canada and the U.S., and attendance is expected to top 250,000 this season.

As a lifelong racing fanatic (and frequent race car driver), I'll be competing as a driver for the Hyundai Genesis Coupe Racing Team, Laps for Kids this season.

The Genesis Racing Team will raise funds and awareness for TAD, the charitable arm of the Toronto Automobile Dealers' Association.

These funds will be distributed to three charities that facilitate organ donation and transplantation: the Trillium Gift of Life Network, Sick Kids hospital, and Ronald McDonald House.

Many automobile manufacturers have shown support for the CTCC. These include Lexus, Honda, Acura, Mazda, Subaru, Chevrolet, BMW, Mini, Saab and Nissan.

The cars that race in the CTCC series are close to stock vehicles - sedans with rear- or front-wheel drive. These vehicles (minus the modifications) can be found in dealership showrooms throughout Canada. These fast-paced races allow spectators to see modified versions of showroom cars perform in actual races. The enthusiasm among drivers, sponsors and spectators is infectious.

Last year, one Ottawa-area dealer hosted a barbecue to coincide with a CTCC race event at the Calabogie Motorsports Park. The festival drew more than 100 race enthusiasts. The week following the event, sales at that dealership jumped 17 per cent!

It's easy for consumers to feel their passion for automobiles dim during these difficult economic times. But car racing provides a great opportunity for consumers to rekindle that passion, with racing events that are closely aligned with new car dealerships, automobile manufacturers and car lovers.