Impact of Auto Industry crisis on NASCAR

Anoyne have any thoughts to share on this?

The longer the delay on the bailout, the more problems GM run into, and now they are shutting all factories for at least a month.

Compound this with the financial problems elsewhere (12 cars may be without sponsors when the Daytona 500 comes around) and where can NASCAR go for help?

If the US Auto industry dies, would other manufactures join with Toyota to field different rides? Would Toyota be the only maker of all cars? Would Toyota even remain in the sport?

Furthermore, should Honda and Nissan step in with teams, would the NASCAR fanbase even support a sport with no american car manufactures?

I'm sure no one knows the answers yet, but it's something to consider, especially for fans of the sport. Also I have to wonder what a NASCAR restructuring/failure would have on the Charlotte economy.

 

So it looks like the US Auto industry has gotten a reprieve to the tune of $17 bil. How will Congress and the US Taxpayers react to GM funding NASCAR teams this year?

Does it bother anyone here that their tax money might be spent supporting NASCAR teams?

 

Yes.

I think the Ford's should have to sell the Lions too.

 

Ford hasn't taken any bailout money to my knowledge...yet.

 

On the surface it does bother me, but I read an article somewhere that made a good point about that. If you're going to dig yourself out, you've got to sell cars. NASCAR fans are VERY brand loyal, and are more interested in cars than the rest of the general public. So in the long run (and I'd be more pissed about giving money to these companies and having them not think of the long run) it would be better business to keep up their NASCAR program and make cuts elsewhere.

 

There's no doubt that NASCAR supplies a lot of jobs, that's one of the main reasons this topic interests me. I don't have the slightest interest in NASCAR, but I do in the Charlotte community, and NASCAR failing would have a huge impact locally I imagine.

As you said, NASCAR fans have been historically loyal, which also made me question the viability of an international NASCAR should Detroit fail. Are they loyal or are they nationalistic? Or both? I think the introduction of Toyota into the sport went better than anticipated, but admittedly I didn't follow it all that closely.

One thing is for sure, with the way NASCAR and it's minor leagues depend on American cars, they had a huge stake in the Detroit bailout. I haven't heard much conversation on their involvement though.

 

NASCAR is bleeding jobs right now. By the start of next season the count should be over 1,000 layoffs. It's also looking like there won't be enough sponsorships to go around.

Fans might not have any choice but to accept foreign cars in NASCAR. I think that if the big 3 fail, then they'd be more accepting of Honda, Nissan etc coming in. If the big 3 pull out and don't go under, I don't see NASCAR fans ever forgiving them.

 

I hadn't even thought about that option. If the Big 3 kill NASCAR it could be even worse financially for them, very good point.

 

The teams do no get as much hard product anymore.

The COT has elminated the sheet metal cost.

They do get the R & D engineers time.

That is negoiated within the companies when they apply for their budget.

They ALWAYS go way over in their asking price to get what they want.


The core people in th ecompanies still believe in

"Win on Sunday, SELL on Monday".....

so the competition will still be there..


The ticket prices need to come down,

and they need a good guy-bad guy deal..that is a timeless recipe

 

There was a good segment on Outside the Lines this morning about this subject. To me it's kind of a microcosm of all sports, only less transparent due to the sponsors (car manufactures) direct influence on the product. Corporate sponsorship though has to be affecting every major league. It will be interesting to watch all those luxury boxes in the NBA over next season and beyond and see how many are still selling.