Chrysler won't suspend NASCAR program, will reduce funding
A rubber bullet has been dodged: NASCAR can still count on sponsorship dollars and involvement provided by the Detroit 3. Chrysler has stated that it will reduce the funds that flow from its taps into NASCAR, but won't leave the sport. As far as marketing and advertising goes, the "stock cars" still pay. Mike Acavitti, who runs the motorsports program at Dodge, said "We have to get our expenses in line with our revenues," but also said that "We're not going to pull out. We are going to throttle back. NASCAR is not exempt from anything else that we do to market and promote vehicles."
Chrysler is cutting back 30% on its NASCAR spend, but will still honor its current contracts. Ford has said it's reducing its NASCAR fund by 20%, and GM says that it, too, will be doling out a smaller NASCAR allowance and letting track sponsorships lapse to go along with its getting out of the Yankees business. Even Toyota plans to spend less on NASCAR. No matter what, though, NASCAR isn't going anywhere -- after all, even if all of the car companies and all of the other sponsors left, the guys in the overalls could always race, you know... stock cars.
[source: Reuters via Speedzzter]
Reader Comments (Page 1 of 2)
DC 8:09PM (12/18/2008)
Not really good news, but expected. NASCAR shall go on!
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Mobius_1 8:13PM (12/18/2008)
meh, Scalextric is more interesting.
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Ian 8:18PM (12/18/2008)
Chrysler of all companies should be pulling out. They have NO MONEY to be spending on this.
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AZZO45b 11:40PM (12/18/2008)
Takes $$$ to break CONTRACTS!!! The money is SPENT. It was from advert & promo budgets....
...Like it or not Dodge's NASCAR efforts promote the brand & the SRT line that still moves product (most SRT models don't have fire sale discounts)
catgirlshyla 8:22PM (12/18/2008)
Call me when either NASCAR decides to race real production cars, or Toyota brings out a 700BHP RWD Camry.
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Mr Cool 9:09PM (12/18/2008)
^THIS
DC 10:31PM (12/18/2008)
Not to nitpick, but that would have to be a RWD Camry with nearly 900 hp, not "just" 700.
catgirlshyla 5:15AM (12/19/2008)
Even Better!! Gates of Heaven, here I come!!
KAveh 8:59PM (12/18/2008)
If Chrysler is tens of billions in the red, why the hell are they still running teams in NASCAR? So with the goverement giving them money, we are paying for the NASCAR. So, people can't complain when there kids schools are under funded, because that money is going to NASCAR. If you don't like it, write to the Goverement.
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AZZO45b 11:47PM (12/18/2008)
In case you missed it Uncle Sam has given Chrysler NOTHING to this point.
Right now GM & Chrysler are asking for the $$$, but all of the Big 3 have scaled back motorsports involvement. Takes $$$ to break contracts, so CHEAPER to race on.
Citi Group HAS RECEIVED 40 BILLION is Uncle Sam's money... they are the presenting sponsor of the Rose Bowl & other New Years Day games. Where is your outrage of Citi getting perks of NCCA football on taxpayer money?
Holden Miecranc 9:05PM (12/18/2008)
For a manufacturer, NASCAR is still pretty cheap advertising. If Chryslers' research shows that they are moving product as a direct result of their NASCAR involvement, should they stop to appease those who dislike NASCAR or know little about the ROI of their NASCAR related expenses?
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VP 9:20PM (12/18/2008)
Amen. Thank you for at least one poster recognizing that NASCAR is a form of advertising for all four companies involved. Do you guys really want these companies to stop advertising just because they are in trouble? The nascar demographic is one of the most reliable groups for all of Big Three. Should they suddenly cede even this market to the foreign competition. Sponsoring NASCAR teams has always been about advertising. Every time Jimmie Johnson is on a late night talk show he is talking about a chevy. Studies have consistently shown nascar is a great value for these companies.
Zippy The Chimp 11:08PM (12/18/2008)
Maybe manufacturers are bailing on WRC, ALMS and other forms of racing because so few actually watch those series, no matter how good they may be, while NASCAR, like it or not, actually helps move product.
It's called advertising you morons. Of course, I'm not surprised by comments posted by the uninformed, as the majority of posts on autoblog are by people whose comments belie the knowledge they profess to hold.
Medstu 11:38PM (12/18/2008)
@Zippy
Youre the uninformed idiot for thinking the entire world has nothing better to do than watch people make left turns. LeMans, WRC, F1 all have much higher viewership than Nascar. The reason companies have been pulling out of these racing series is that it actually takes money to stay on the cutting edge, Nascar tech is still mid 60's at best.
Harry Ariola 9:38AM (12/19/2008)
Medstu,
Your bias against and and lack of knowledge of NASCAR is showing. If you actually knew something about NASCAR, you would know that in the mid-60's teams weren't spending vast amounts of time in wind tunnels to try and eke out even the slightest aero edge over their competition, there were no 7 post shaker rigs in use and there weren't entire shops within race teams that do nothing but build shock absorbers in effort to gain a handling advantage. Furhtermore, going one decade beyond your mid-60's reference, in the mid- 70's teams were getting roughly 450 HP out of small blocks, now they are getting 750+ while running at 9200 RPM. That doesn't sound like mid-60's tech to me, that sounds like somebody who doesn't like NASCAR and will use a condescending stereotype to try and make their point- facts be damned.
Bottomline, if manufacturers were getting a return on their money on those other "superior" forms of racing, they wouldn't be abandoning them. If manufacturers are not getting a return on their investment, that means a) there's not enough of a fan base to support the manufacturers expense or b) there is a fan base, but they do not support the manufacturers in those series by actually buying their product.
This isn't about one's preference for one form of racing over another, it is about money. NASCAR generates money for the manufacturers involved in it and obviously the other series don't. Next time, get some facts about which you speak, that way no one will know how unknowledgeable you really are when you try to express your vast intellect of the business of motorsports.
Enrique 9:19PM (12/18/2008)
Maybe... JUUUUUUUST maybe we will see less "stock car" racing on Speed TV....
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AZZO45b 12:01AM (12/19/2008)
You will regardless...
...Nationwide Series teams have been laying people off in droves (no sponsors, mergers, sh*t economy). GM, Ford, & Chrysler already slashed budgets or outright QUIT supporting Craftsman Truck Series teams.
That equals less NASCAR on SPEED... you have your wish (& its not even Xmas)
Virtuous 9:41PM (12/18/2008)
As a condition of accepting government funds GM and Chrysler should be forced to immediately suspend all racing activities, especially NASCAR.
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AZZO45b 11:56PM (12/18/2008)
Then perhaps Congress will pay the buyout clauses in GM & Chrysler NASCAR contracts??? Join the real world & offer realistic solutions... not "feel-good" PR stunts, designed to have the clueless public think "their money" is being properly managed.
Wall St. gets a 700 BILLION + "blank check" & the auto industry has to perform circus tricks to get 15 BILLION in bridge LOANS??????? PLEASE
Virtuous 9:43PM (12/18/2008)
As a condition of accepting government funds GM and Chrysler should be forced to immediately suspend all racing activities, especially NASCAR.
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