December 22nd, 2008 
T.C. What if the big three don’t get the bailout? What if the big three do get the bailout?
What if the big three go bankrupt? What if the big three don’t go bankrupt?
What if the big three pull out of NASCAR? What if the big three don’t pull out of NASCAR?
In any case, what does it all mean for our beloved sport? Let’s see…
In the last few weeks, I’ve seen and heard it all. As we sit right now, both the U.S. and Canadian governments have pledged funds to float Chrysler and GM. So the first line of questions has been answered. Now, whether or not they will get more bailout money beyond this initial round, we’ll have to wait to find out. But for now, they are sticking around.
The questions surrounding our sport now turn to what all this means for NASCAR’s factory support. GM, Chrysler, and Ford have all already announced cutbacks to their NASCAR spending, but none have pulled out completely… Yet.
I’m not usually one for “what if” because it’s really pointless. But for the sake of argument and this blog post, lets say it; What if they all pulled out?
Let’s get one thing straight right away. The landscape of NASCAR would most definitely change without these companies involved. I’ve seen it estimated that combined the automakers spend somewhere between $120 and $140 million annually on competition and marketing efforts. An overnight evaporation of that level of involvement would be very significant. But would it break the sport? Absolutely not.
Teams have survived factory pullouts before, they could definitely do it again. I believe this because the business model of teams has changed drastically since even the last pullout. Teams don’t rely on factory money to survive; the corporate sponsors now foot the majority of the bill. They use much of the factory support to aid in research and development for the racecars. This happens through engineering efforts, testing, and things like wind tunnel time. Without that backing, these activities would just be curtailed.
Would it mean more job losses? I definitely think so. Engineering and testing staffs would be the hardest hit. They are the folks who work hand-in-hand with the people from the manufacturers.
The question then becomes, would most fans really notice a difference on track? You know, I really don’t think so. Teams would pretty much be limited to what information they currently have on file and what they could obtain in their shops and during race weekends. The teams may not make such large leaps in terms of competition gains, but they would still progress. The haves would still be the haves, and the have-nots would still be the have-nots. The have-nots may even be able to make some gains on the big boys.
Now, do I really see a complete exit by the American automakers coming? I really don’t. Even if they don’t offer engineering help, and the Richmond race ceases to be the “Chevy Rock & Roll 400,” the manufacturers would still be involved, even if only a little. They would still toss the teams a little dough just to keep them running Ford Fusion, Chevrolet Impala, and Dodge Charger decals on their cars.
I think what some people don’t understand about car companies being involved in motorsports is that it isn’t a charity or hobby for them. They do it because it helps them sell more cars. If it didn’t, they would have gotten out a long time ago. There is actual, real, and tangible value in being involved.
Looking to the future, the American automakers have a monumental hole to dig themselves out of. They have a lot of problems to fix. But when it comes right down to it, the only way for these companies to continue is to sell more cars. And when selling, you need to be able to reach your customer. Guess what NASCAR fans are? They are the automakers’ core customers.
Do you really think they are going to turn their backs on that kind of access? I think not.
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You’re right… I don’t think fans would notice a change on the track. Maybe if the fan has a background in engines, mechanics and can distinguish between the fine numbers, but if they’re like me and I can’t even change the oil in my truck, then nope, won’t notice.
Maybe the automakers, and NASCAR, should get away from 1950′s technology. It time to move on NASCAR, as much as I hate to say it.
Ryan, I agree with you, but I also understand why NASCAR has not moved on to the computer age, It is much easier to control horepower using a carb over fuel injection. Right now nascar dictates what jets to use or they mandate restrictor plates at the larger tracks. It is also much cheaper than fuel injection.
#2 The big 3,,, who’s missing?? Yes Toyota. If the big three were to pull out, all of the Toyota teams would still have all of their Mfg support, So what would happen is just what Jack Roush said a year ago. The sprint cup would become the Toyota series. Teams would run for who ever is going to support them, It has happened before and it will happen again if the big 3 were to pull out of NASCAR. I think the impact would be much larger than anyone knows.
Compared to Honda’s pullout from F-1 (where they were spending over $900M a year on ONE TEAM!) and Subaru’s sudden departure from WRC, a pull out by the NASCAR auto manufacturers would hurt, but not kill too many NASCAR teams.
The auto companies have always been invoved in auto racing. Sometimes it was a lot of involvement sometimes very little.
Jack Roush, bleeds Ford blue, and Rick Hendrick started out with Star Chevrolet and both men learned from the old “win on sunday, sell on monday”
The racing will always be there,in some form, thats for sure.
Great post
Steve: The Toyota issue is something I definitely thought about when writing this post, but I wanted to focus on the Big Three. I have to believe that if it came to Ford, GM, and Chrysler pulling out, NASCAR would step in and limit Toyota’s involvement. Having only one manufacturer involved doesn’t work for the sport. It’s either all or nothing here. You can’t have a handful of teams getting extra help, when its not available to the others. And NASCAR, Toyota, and the fans don’t want to see 43 Camrys running.
Rest assured, if GM and Chrysler (and perhaps Ford later) pinched the funding and R&D funnel to teams, NASCAR would not waste any time soliciting more than just Toyota (Honda, Hyundai, Kia, Audi…) to come on board. Remember, race teams don’t sponsor their sponsors. That would be foolish. That leads to Ryan’s technology comment. Toyota only came into a push-rod V8 racing world to reap the advertising week in and week out w/ “bill board” exposure. The others might just be playing the waiting game until NASCAR is forced to update to overhead cam, fuel injected engines showcased in what they actually sell on Monday. The time may be ripe for the picking.
Let’s be honest here: How many NASCAR fans go out and buy a Fusion (Taurus, uh Ford 500?), Monte Carlo, Charger, or Camry because they saw “that” car (especially now w/ COT quadruplets) win on Sunday (or Sat night)??? Those front wheel drive, fuel injected, overhead cam, “4” door sedans are not tops on my list to buy as I leave the track after a thrilling day of racing. Probably not too many for that reason, but if the BIG three were MIA….no doubt it would be a case of “out of sight, out of mind”. Unless you talking about your grandparents (just some), or those who don’t even know the names Petty and Earnhardt.
I think in terms of selling cars, while winning on Sunday may not sell those specific models on Monday, that doesn’t mean the involvement doesn’t sell cars. I saw an interview with a Toyota executive in which he was quoted as saying Toyota wasn’t in NASCAR to sell Camrys. They were in NASCAR to sell Tundras. The Camry is already the best selling car in America. But those truck buying NASCAR fans had been fiercely American brand loyal before. They saw an opportunity to try and gain ground for their truck sales.
So while automaker involvement may not specifically push those models used in competition, it does benefit the other models. Ford, GM, and Chrysler all push their entire lines at races, not just their racecar.
I am by no means a Toyota fan! However,why should they be penalized by NASCAR because Ford,GM,and Chrysler are narrow minded in their development theory?
Like a child that has gone astray,you don’t penalize His siblings for His behavior. Don’t limit the others involvement!
I’m a life long Dodge fan,I was psyched when they came back. However,I am disappointed in their performance.
The cliche’ of “Win on Sunday,Sell on Monday” went away back in the mid ’9o’s when some braintrust at NASCAR decided to add “headlights.”
There’s something fundamental that I don’t understand here. Why is everyone in denial that GM and Chrysler will, beyond a shadow of a doubt, disappear? Both companies have balance sheets in the tens of billions of dollars of negative equity. Both companies’ finance arms are bankrupt and can’t even floorplan dealer inventories, much less finance consumer purchases. All this is happening during the beginning of the Second Great Depression. Make no mistake, neither GM nor Chrysler will survive until spring 2009. The question then becomes one of what GM and Chrysler teams will do. Will NASCAR even allow teams to compete with brands that no longer exist? These are the questions that should be asked. Now.
Come to think of it, maybe NASCAR had a crystal ball when they developed the COT. Aside from a varying quarter window and different headlight and grill stickers (neither affecting performance characteristics) any manufacturers engine (uhhh block and heads?) can be dropped in any chassis in a matter of hours (ok maybe a day). Robby Gordon has tatsted every manufacture to date. Now Toyota. Think he builds all new cars with the flavor of the month. Naw!
As stupid as the COT looks, and as much of a slug it appears to be (ask Jeff Gordon his opinion), perhaps that very element may be what pulls NASCAR through this tough economic time. Heck, NASCAR took a page from the production car industry. Make the same car for 6 companies. Just put different stickers on them. Don’t you feel better knowing that you’ve been driving a version of the COT for 3-4 decades!
If you look at the nose on the Chargers they are actually made to accommodate the Avenger decals,err I mean grill!!!
TC Back in the 70′s – 80′s when there was no mfg support everything with Cup ran very smoothly equal car counts by mfg, Ford was the first to step back into NASCAR with the Wood Bros JR Johnson and so on, the following year the feild was Ford heavy, then GM stepped back into the support program and the balanced it self out less Chrysler. This was back when The King was running a Pontiac. I guess my point being that back then a majority of the teams ran to the Mfg who was giving support and moneys. If NASCAR were to loose the Big Three or any part of the big three, they would need to limit the amount of support the remaining mfg could provide to the teams running that product. So yes we agree. The last thing I want to see in NASCAR is the Toyota Cup, Honda and so on. I come from a dealership back round for the past 30 years and have never owned an import vehicle. I know the American Mfg can and do build vehicle as good if not better than the imports. So yea I have a huge bias. I promote supporting the big 3 by buying American. As far as I am concerned it’s the right thing to do in this day and age. We went through this type of problem in the early 80′s and survived. I know we can and will do it again. And to Bill Wison I would be willing to bet you the big three will be in NASCAR for many years to come. it least the big two. Thank you