CRC: SUBARU RALLY TEAM CANADA 'RETIRES' AFTER '04

NOVEMBER 23, 2004: MISSISSAUGA, ON - After 12 years of competition in the Canadian Rally Championship Series, where Subaru has won the Canadian Manufacturers’ Championship for the past five consecutive years and six times in total, Subaru Canada Inc. has decided that it will not compete in the 2005 season.



According to Brian Hyland, director, sponsorships and distribution for Subaru Canada, Inc., “There were a lot of factors that led to this decision. Subaru invested a great deal of money and much effort in the series over the past six years while we were the title sponsor. We also tried to assist the sanctioning body, the Canadian Association of Rallysport (CARS) in every way we could to make this a more viable proposition for sponsors, event organizers and competitors alike.”



Subaru has sponsored or presented the championship series along with Yokohama from 1998 until 2003. This year Subaru was the primary financial contributor to the series because Yokohama decided not to continue its association with CARS after the 2003 season. “Because there was no other major sponsor this year, Subaru’s costs increased dramatically,” Hyland said. “Along with the costs associated with running the team, it became nearly prohibitive, but Subaru would have continued if there had been a solid marketing plan in place for 2005 from CARS that included additional sponsors.”



One of Subaru’s concerns had been the series’ lack of a professional marketing approach. In 2003, CARS made an effort to put together a marketing company to promote the National series, but it did not last the full year. For 2004, Subaru insisted that a solid marketing plan had to be developed in order for it to continue. Subaru worked in conjunction with Jud Buchanan and Keith Townsend, who formed Rally Development Group (RDG), a marketing and promotions company. Its goal was to work with all of the individual rally event organizers to increase the professionalism and overall image of the series and to bring more sponsors into the series.



In January of this year, RDG and CARS entered into a five-year marketing and broadcast rights agreement. RDG took over marketing of the series and CARS continued to look after all the regulatory aspects of the sport. “We knew Buchanan and Townsend from both rallying and other business associations,” Hyland explained. Buchanan was the former motorsport manager for Yokohama Tires and Operations manager for CASCAR, while Townsend has been the organizer of the Rally of the Tall Pines for a number of years. “We were really shocked when CARS terminated its agreement with RDG, especially after all the positive comments from competitors and organizers about the great things that they had seen happen in 2004 and the fact that RDG was in final negotiations to bringing another major sponsor on board for the 2005 season.



“I spoke with both CARS and ASN-Canada FIA about the situation. They reviewed the situation with RDG, but the difficulties could not be resolved. Without a strong marketing approach to the series, it doesn’t make sense for Subaru to continue to put money into it. We need to see a return on our investment.”



The withdrawal from the sponsorship and the decision to not field a team for the 2005 season does not mean that Subaru’s 13-year association with rallying in Canada will end. Hyland said, “We will continue to be involved with the sport but to what extent, we can’t currently say. We will definitely be there with a contingency programme for all the Subarus currently competing.”



Subaru has won the most Manufacturers’ titles in the series history. It has won multiple championships in many of the series classes, eight overall Canadian Drivers Championships, as well as many North American Rally Cup Championships.