The View from Here: The Business of NASCAR

With recent difficult economic times for the big three automakers, they should consider scaling back their marketing support invested in NASCAR. With the automakers, particularly General Motors, struggling to survive, some might question their longtime relationship with NASCAR. The overall objective for General Motors and others to invest the bundles of money they do into the racing giant is to sell vehicles. There was a time when a race took place on Sunday and fans would walk into the dealership Monday to purchase the same vehicle they saw speeding around the track. Four-door sedans that you can find at the airport rental counter have replaced all the days of the Chevrolet Monte Carlo, Ford Thunderbird, and even the Plymouth Superbird. The only thing that is common between the NASCAR Impala and the one you find on the showroom floor is the nameplate. The vehicles for purchase are far from your 700 hp NASCAR mandated Car of Tomorrow common template you see circling the track. Those days are long over.

So if NASCAR is supported by corporate dollars, then what happens when the corporations are running out of dollars to spend? General Motors and others will be sure to scale back their investment in NASCAR, but I would not suspect a full pullout because in my eyes that would be the end of NASCAR. To remain competitive, the big three automakers would have to remain supportive. There are still many fans who are brand loyal versus following a particular driver. Therefore, it is important for the big three manufacturers to be represented and to dedicate the engineering dollars that support the teams so they can remain competitive on the track.
And that’s the view from here.
AS