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In reponse to the global economic downturn, both Holden and Saab here in Australia are taking the knife to their corporate hospitality commitments.

This is big.

Saab’s involvement in horseracing in Australia is probably it’s biggest single marketing exercise. The Melbourne Cup is the biggest horserace in Australia and the final race available to qualify for The Cup is a race called the Saab Quality. It’s a huge event that sees my RSS feed full for two weeks with speculations about who’s going to run in “The Saab” etc.

Saab will also be cancelling their corporate hositality tent at the Melbourne Cup Carnival. They’ve been erecting this tent and hosting Melbourne’s movers and shakers for a number of years now. In November 2008 they moved back to the prestigious group of tents known as The Birdcage – the loftiest spot you can get.

Back in 2006 they changed their marquee every day of the four-day carnival to reflect a different season (to promote the four-seat, four-season Saab convertible). In 2007 they had a Saab Convertible encased in ice. This are big, costly events.

Saab will retain an affiliation with racing through being a vehicle sponsor for the Victorian Racing Club, but the days of copius amounts of free wine and cheese are over.

For Holden, the cuts go even deeper.

The biggest form of car racing here in Australia is the V8 Supercar series. It’s Holden vs Ford. One of the most storied rivalries in the country.

Holden will retain a factory team in the V8 Supercars, but they’re withdrawing all of their corporate hospitality at V8 Supercar race meetings, including the car race that stops the nation – Bathurst.

Saab’s situation here in Australia would be well known to you. They’re struggling in a big way.

Whay you mightn’t know is that Holden are also struggling. Holden are propped up by the fact that they make a large number of vehicles for overseas markets. These are primarily (maybe wholly) large RWD vehicles based on their prime seller here in Australia, the Commodore family sedan and wagon (and ute). Holden were going to supply the US with the Pontiac G8 Sport Truck, but that’s been cancelled. Their top selling car here in Australia, the Commodore, was recently beaten out for top spot in the sales charts by the Mazda 3 (and this after numerous beatings by the Toyota Corolla and HiLux).

For Holden, withdrawing in anyway from their main image-builder – V8 racing – is a big, big move.

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It just goes to show….all the fancy high-class marketing in the world won’t mean a think without a hot product.

Saab need those new products now.

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