Steve Waid: NASCAR needs support from auto manufacturers

By Steve Waid
Monday, May 18, 2009

COMMENTARY

One major automobile company, Chrysler, is in bankruptcy protection and it is widely speculated that General Motors could seek protection as well.

For most of its existence, NASCAR, and its teams, have relied on support from the powers in Detroit. There have been times when it was overt – even domineering – and other times when it was withdrawn following disputes with the sanctioning body.

Once, Detroit’s “Big Three” – Chrysler, Ford and General Motors – developed special cars, exotic engines and even hired drivers for select teams in an effort to be the best in NASCAR. They held significant power in stock-car racing.

They wanted to win races.

The goal was, of course, to sell passenger cars. The adage was that if a manufacturer’s car could win on Sunday, it would be sold on Monday. Detroit believed it because, at the time, it was true.

Over the years factory support has become far less overt – OK, maybe not. But it continues to be an important part of NASCAR and a lifeblood for its teams.

But now it’s not a dispute with NASCAR that threatens support from one, and perhaps two, of the major manufacturers. It’s the economy.

Chrysler and GM have requested, and received, federal bailout money. Ford has taken no money from the federal government nor has Toyota.

Chrysler has said that it will continue its commitment to its NASCAR Dodge teams despite its filing.

Roger Penske, who fields Dodges for Kurt Busch, David Stremme and Sam Hornish Jr. – and owns several Dodge dealerships – said he was contacted by Chrysler and told the company denies reports it will pull its support after this season.

But it might have no recourse.

An article in Automotive News said that Chrysler wanted to spend $134 million in advertising and marketing, which includes its spending in NASCAR, over the nine weeks it is expected to be in bankruptcy protection. That was a significantly reduced amount from what it had previously spent.

But it’s not in control. The U.S. Treasury’s auto industry task force is – and it allotted Chrysler half that amount.

So it follows that if GM also files for protection, the funds it might request for advertising and marketing could ultimately be severely reduced.

One wouldn’t think the U.S. Treasury’s auto industry task force would do anything other than what it has already done to Chrysler.

Penske has been quoted as saying that if Chrysler gets needed capital and becomes a smaller company it will be more viable, and motorsports will become a marketing opportunity.

His team and Richard Petty Motorsports can only hope so. Otherwise, there may be some major issues to face.

There could be a manufacturer change for some teams if the federal government imposes budget constraints that prevent Chrysler, and possibly GM, from funding teams in NASCAR.

However, it seems likely Ford and Toyota might not be able to afford the absorption of additional NASCAR teams.

I certainly don’t understand the workings of the federal government, bankruptcy laws or how either might be manipulated in regard to the manufacturers and NASCAR.

This is only to say that what has been reported could mean NASCAR’s Chrysler teams, and possibly its GM teams, might face an uncertain future.

The words “cautiously optimistic” have been spoken when it comes to Chrysler’s future in NASCAR. No doubt they will be heard again if GM indeed encounters a similar situation.

NASCAR Chief Executive Officer Brian France said he is confident both manufacturers will remain active in stock-car racing.

Hopefully, that will be the case.

Comments

15 responses to "Steve Waid: NASCAR needs support from auto manufacturers". Post a Comment.
  1. 1
    Kyle Newton said:
    May 18, 2009 at 8:46 AM

    Good I don't like Ford anyway!

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  2. 2
    Worm Dirt said:
    May 18, 2009 at 1:50 PM

    Make no mistake about it. Chevy AND Dodge's days are numbered in Nascar. It is a done deal!!!! Over! Gone! See ya..... wouldn't want to be ya! I mean, think about it. It's their own fault for selling their souls and giving control to the federal government. ALREADY, they have cut Chrylers advertising budget IN HALF!! Bwa ha ha ha! Are you kidding me???? People in DC who have NEVER run a business in their lives think that cutting advertising IN HALF is the first step to prosperity. Holy ______! These federal clowns can't even run congress. Has anybody been to the Post Office lately? the DMV? Oh man.... It's sad. Maybe, long-term this will actually be a good thing. Maybe, a certain segment of society that follows racing closer than they follow the tyranny going on in DC, will FINALLY wake up when the government takes their beloved Chevy's out of Nascar. WAKE UP!

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  3. 3
    Michael Daly said:
    May 18, 2009 at 2:32 PM

    Worm Dirt, on what do you base the premise that Chevy and Dodge will be forced to disband their NASCAR programs? That government is trying to nationalize them is true enough, but the Obama regime is losing all of its policy battles, plus the market is far stronger than people give it credit for. Racing has consistently proven its worth for auto manufacturers in their advertising.

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  4. 4
    Worm Dirt said:
    May 18, 2009 at 3:32 PM

    Michael, I base it on the proven time-tested indisputable fact that governments are parasites and NOT profit-makers. Governments do NOT create wealth. They only know how to CONFISCATE it. Seriously, do you think that even though some of the "best" business minds in the auto industry have been unable to make these companies work YET somehow someway the government (who can't even turn a profit with the Post Office) has the business-sense to turn them around and start raking in profits??? Don't hold your breath. AND, aren't the "policy battles" you speak of irrelevant? Does a "car czar" have a policy battle with anyone? Or is it whatever he says goes... End of story? Like stupidly slashing Chrysler's ad budget in half. And while I could easily see these types of government policies forcing GM and Chrysler to make the tough decision to pull out of Nascar, even if that fails to happen...... the FACT that the bumbling stumbling clumsy Leviathan politically-bound-to-the-unions US government is now guiding the ship, is a sure-fire recipe for FAILURE. They are gone one way or the other. And believe it or not, there are actually people out there with PRINCIPLES that will refuse to buy products from GM or Chrysler because of what they are helping do to our country. A LEGITIMATE bankrupcy and the free-market was their only hope. But.... sadly, that ship has sailed.

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  5. 5
    bill thompson said:
    May 18, 2009 at 5:17 PM

    greed will bring down gm and chrysler.we should quit giving them money!!!! heck let FORD run them, at least they;re still viable!

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  6. 6
    Teddy Bear said:
    May 19, 2009 at 12:52 AM

    Not nearly as much as the automakers need Nascar's support.

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  7. 7
    Robert Wingert said:
    May 19, 2009 at 9:47 AM

    We don't need Chevy and Dodge in Nascar. Just because without them there would have been no Nascar to begin with. So lets get rid of them and add Honda and Nissan. Move all the races from the south and run in out west where most of the Asian population lives. Lets go back to the good old days when we street raced our souped up 1967 4 cylinder toyota against the then hot 1966 Honda. Wow those were the days. toyota did so much for Nascar racing, winning all those championships. Can't you all remember when Dale SR, Darrel Waltrip, Buddy Baker, etc. jumped out of their toyota's in victory lane.

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  8. 8
    bill thompson said:
    May 19, 2009 at 10:09 AM

    LOL

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  9. 9
    Robert Wingert said:
    May 19, 2009 at 10:12 AM

    The fact is Nascar sold itself out to toyota and now they will pay the price with more and more races not sold out, lower TV ratings etc. Wormdirt can say all he wants about his dislike for Chevy and Dodge, but the truth be known Nascar can't run it's progam with two manufactures. So Nascar fans get ready for Ford, toyota, and honda.

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  10. 10
    Art Sheeler said:
    May 19, 2009 at 10:22 AM

    I have driven Ford for 52 years, tried a Mazda in 1969.The motor dropped out at 40,000 miles. I would not be caught dead in foreign auto. We need to support north American automobiles. It's scarey whats happening. I am Canadian and GM is fighting with the union to take a cut or the government won't help them out. Scarey isn't it,when the government says you must take a cut in pay and they squander money like it's going out of style eh?

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  11. 11
    Art Sheeler said:
    May 19, 2009 at 10:31 AM

    One other thing, Nascar the auto industy an ALL OF US need to support North American automakers, then the profits from North American autos stays in North America.

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  12. 12
    Robert Wingert said:
    May 19, 2009 at 12:45 PM

    Well said Art... Couldn't agree with you more. We are talking about Stock Car Racing and toyota never made to this day a stock car anyone would race, yet they are invited into Nascar. I'm a Chevy man, but if they fold the next car I purchase will be a Ford. toyota has 34,366 American employees of which 32% are minorities, while 84% of Americans are white. They call it diversity, while I call it cheap labor.

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  13. 13
    Worm Dirt said:
    May 19, 2009 at 12:59 PM

    Art, I wholeheartedly disagree. I mean, why exactly should we start supporting them NOW??? Seriously, if people wanted to buy their cars TO BEGIN WITH, then they wouldn't be in this situation right?. So..... why, after all of this new nonsense, should we suddenly start to give them our hard earned money????!? Now that they are in bed with the federal government...... staying afloat on confiscated tax-payer money.... and on and on??? And I also find it HILARIOUS that you are suddenly shocked and find it "scary" at the way the federal government is wielding it's power. Sounds to me like you are only "scared" because it is being done to affect the union. Well, I have a question..... What about the "pay-cut" they force on every single american in the form of taxation to spend on this type of evil???? Does that "scare" you???? Or what if the unions had been given a RAISE and some more ridiculous benefitswith our money...... would you have been outraged or would you have continued to keep quiet? Hmmmmm.......

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  14. 14
    Robert Wingert said:
    May 19, 2009 at 1:11 PM

    We are the government. You should be happy wormdirt as you own a major stake in AGI, Citi, Bank of America. You never mention those bailouts just GM that bad company who employees union members. The best fire dept in the country are union members, as is the best police dept.

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  15. 15
    Worm Dirt said:
    May 19, 2009 at 1:28 PM

    Wingert, Hmmmmm..... I wonder if this being a RACING website has anything to do with why we discuss CAR company bailouts more than banks or insurance companies???? I am AGAINST those as well. Anyway, as much as I'd like to set the record straight on my opinions of ANY bailout and on unions.....well....let's just say that..... After the last two sentences of your #12 comment, I just feel sleezy even wasting my time with someone like you. But, listen close for a minute..... I have one last thing to say..... and you probably won't fully understand it....... but I really have to get this off of my chest.......... here goes......... I AM ASHAMED TO BE YOUR COUNTRYMAN.

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