Steve Waid: NASCAR needs support from auto manufacturers
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 There have been times when it was overt – even domineering – and other times when it was withdrawn following disputes with the sanctioning body.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.
