The red jackets are back.

For five days, teams from Austria, Switzerland, Germany and Canada are in the Yukon taking part in a series of challenges that might some ludicrous to the outside eye, especially with temperatures dipping well below -40 this week across most of the territory.

Those participating in the Fulda Challenge Extreme Arctic Winter Adventure have already dropped tires out of a helicopter and skijored with an SUV.

Today, the seven teams are in Dawson City, where it hit -50 C overnight, taking part in a snowshoe race and sawing competition.

They will then drive back to Whitehorse to inch their way down a rope stretched across Miles Canyon.

This is the 12th year the Fulda Challenge has taken place in the Yukon. It's considered a major marketing tool for both Fulda, a major German tire company, and the territory.

The Yukon government provides Fulda with $150,000 in a marketing agreement. That's the same amount the government gives to the Yukon Quest sled dog race every year for the same purpose.

Along with the seven teams, crew members, doctors, mountain rescue specialists and marketing gurus, those who travelled from Europe include a handful of foreign journalists who will take their stories back home for publication once the event is over.

According to a YTG press release, in 2011, the Fulda Challenge generated more than $6.1 million in media coverage.

Fulda spends an estimated $1 million locally every year on things like equipment rentals, accommodations, food and transportation.

Kia Motors sponsored the vehicles for this year's race. The business gave Fulda 22 brand new black, Kia Sportage and Sorento SUVs.

The vehicles were shipped to the Yukon from Ontario this past fall and lined up on display outside the Westmark Whitehorse Hotel at the end of last week.

Tourism and Culture Minister Mike Nixon was at the challenge's opening event at the Whitehorse Information Centre on Friday morning.

"After watching that, I'm prepared to put in my own team,” Nixon joked after the screening of a promotional video for the event.

Nixon said the government is happy to provide support to the event because it gives the territory exceptional media coverage.

"On behalf of the Government of Yukon, I would like to welcome contestants, delegates, foreign journalists and event organizers to the territory.

"This year marks the 12th season Fulda and Yukon have partnered on a unique marketing opportunity, which provides Yukon with great media and branding value in German-speaking Europe, raising the awareness of the territory as a travel destination.”

Each year, the Yukon receives approximately 10,000 German-speaking European visitors, the largest overseas tourism market for the territory, government statistics suggest.

Rainer Landwehr, the group managing director of Goodyear-Dunlop Germany, told the group of foreigners that the Yukon's land mass is as big as Austria, Switzerland and Germany combined.

"If you want to encounter loneliness and isolation, you will now have the chance,” he told the group Friday, though it was hard to believe judging by just how many people are involved in the event.

Landwehr told locals that German children are raised on the stories of Jack London.

"Germans love the Yukon,” he said.

"For us, the Fulda Challenge has developed not only into a unique winter adventure event, but also into an effective marketing tool and a great testing ground for our tires.

"The Fulda Challenge highlights absolute motivation, performance, endurance and reliability of participants and equipment, all accomplished in Yukon's fantastic landscapes.”

Participants include a world-kick boxing champion and an Ironman champion, as well as a team made up of two popular German TV personalities.

The Canadian team is made up of Calgarians Ryan Smith and Chantal MacKenzie.

Smith, who plays rugby for Team Canada, told reporters after the opening event he has no idea what to expect.

Although Calgary has experienced a warm winter, Smith said he still knows how to dress for the cold.

"But it's not like we've been locking ourselves in walk-in freezers for practice,” he joked.

The Fulda Challenge will return to Whitehorse tomorrow for the rope-crossing event and a winning ceremony at the Westmark.

The winning team will receive a few golden nuggets from Dawson.