I've been on hols for a week, and have decided to come back and pick up where I left off, with something gentle and uncontraversial.
With the global economy looking downwards, and car makers feeling the additional pressures of rising oil prices and environmental concerns, might the car makers feel the need to pull of out of racing in order to save money.
Of particular concern must be Chevrolet. Chevy's parent company, General Motors, made a loss of $15.5 Billion (for those of you who judge amounts by the number of zeros it's $15,000,000,000) in the three-months up to June, as well as a whopping 20% sales drop in the US. General Motors is huge. It owns several marques in the US (although many have been consigned to history) as well as makers all over the world - Vauxhall in the UK, Opel on mainland Europe, Holden in Australia as well as many others and smaller stakes in related companies. Aside from the US sales drop quite what the loss figure relates to - only US holdings - or worldwide is unknown, but either way it's a lot of money.
While a chunk of the lost money has been explained away as "one-time charges" - such as the $3.3billion used to buyout the contracts of 19,000 hourly workers made redundant in June - the total of these one-time charges is $9.1billion, but even taking away these amount the remaining $6Billion is a huge amount.
Of course GM's loss is not the only such report in the car makers section. Ford reported a 54% sales drop in SUVs and a18% drop in vans and trucks (far out-weighing the 8% gain in car sales). Toyota's picture is less positive than Ford's with car sales falling buy 8%, SUVs by 32% and "light" trucks by 33%.
Across the board there are massive losses being made, of course these results are not limited to those marques racing in NASCAR.
The economy is always going effect any sport - high gas prices stop fans travelling, high ticket prices mean fans don't want to travel and bad business results will affect the willingness of companies to sponsor teams and events - something we have undeniably seen the results of in NASCAR.
Now given the massive expenditure that furnishing NASCAR teams must be, and the loss, more or less, of the 'win on Sunday, sell on Monday' ethos, might the owners (or accountants) of these car makers see NASCAR as a cost it can easily cut?
This might be a good idea to see the auto makers bow out. The cost of racing has escilated to a point that it is absurd. Then you have NASCAR gouging the sponsors as well as the fans.
Time to get back to our roots in racing. Certainly not the high dollar corporate fiasco it is now. I for one have found the local racing ( circle, drag, and road)to be more reasonable and more exciting.
jbroomy
The domestic manufacturers are already decreassing their commitment to competitive racing. As each of 'em are now having to bite the bullet. Say nothing of which they're at the edge overlooking a financial precipice.
See my post as titled below. Just click on the link (site) to view in its entirety.
I'll look forward to reading your comment as and when you're ready.
You Needn't Worry Your Enjoyment Of Sports'll Be Here Tomorrow. site
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redfordfan
That's dependent as what defines as long term? GM, Ford and Chrysler are in a considerable mess. And about the only hope that they've got may well be a bailout from the Federal Government. So as to your optimism I do believe it's ill advized and mistimed.
Ford claims to get a 400% return on what it spends in marketing in NASCAR. That number seems low when you consider all the hours of free advertising they enjoy whenever a Ford car or logo is shown on TV.
The manufacturers may have to tighten their belts, but I doubt a 400% return on investment and hours of free advertising will be among the first to go.
The car makers, no names, will pull out of all there local events before leaving winning teams in Nascar. what is the right answer? Tell the oil company to share a lil of those record after record profits....Lol..Like that would happen.
If they were to pull out, you know the teams would race. The sponsors could all leave, and the true racer will still race. TV could stop showing the races and they will still race. Me as a fan will still be a fan. Just means like the old days Teams and drivers will have to work mon-fri and race the weekends.
hanahan If you believe anything that Ford has to say concerning its investments and business strategy then I've got an acreage of land I'd like to introduce you to in outer Siberia.
We'll continue to see a slow and steady incremental decrease by all of the major domestic manufacturers whilst the economy is in disarray. It stands to reason that you'll cut your budget where necessary. And if it means layoffs , the shuttering of production plants and then your commitment to competitive racing then that's how it'll have to be. It's not as if any of these manufacturers are awash with cash as it is. Each of 'em are sitting on piles of debt and burning through what little cash they do have at an unprecedented rate.
Ask GM what it's like to burn through $8bn inside six months ? When you've got nothing to show for it at the end of the day !
I always want to write something witty here, but my wit is always confused with something worse ------------- ------------- ----NASCAR and Auto Racing in general mostly here, but I get distracted by shiny sporting objects as well and give them an airing too---------- ------------- -----Pastimes include rooting for the underdog and trying to fathom why Golf is considered a sport-------- ------------- ---
Send Lawyers, Guns and Money.
