Can Nascar survive in 2009?

Nascar LogoInteresting topic headline right?  Well, those of you that say”absolutely Nascar will survive,” be prepared for a dose of reality.

I live in the Detroit metroplex and have done so for the last 20 years.  I follow what goes on at General Motors, Ford, and Chrysler.  The local newspapers, TV and radio stations have stories on the Big 3 daily in good times and definitely now in bad times.  And one thing I can tell you, it is not BS that Chrysler could be out of business within a handful of months along with General Motors.

What those idiot people in the U.S. Senate and House of Representatives heard the last several days is the absolute truth.  Sales are on a big decline, but not because the car companies don’t make cars that Americans want to buy, but that the credit market isn’t giving loans to anyone.  Hard to buy a car with no money isn’t it.

So let’s say Chrysler and GM file bankruptcy.  Anyone think the millions of dollars they pour into Nascar is going to stay around?  Nope, it’s gone, and with it lots of financial help to a lot of teams, especially on the GM side.

Can those teams survive without money from the Big 3 and the engineering help they also give? 

In the Dodge camp, Penske Racing will survive, they’d just switch to Toyota.  I can tell you for a fact though, that they are watching every nickel they spend in all of their racing endeavours very closely and are trying to stay away from laying off personnel.  Gillette-Evernham?  That comes down to how much money does Mr. Gillette want to throw at the situation.  Petty Enterprises?  Probably down to one car, if they somehow stay afloat.

In the GM family, Hendrick and Childress can survive, but probably would have to cut some more personnel.  Stewart-Haas?  Major blow to Tony’s efforts at building that team.  DEI?  That group is in trouble already and merging with Ganassi, while should be economy of scale, might not be enough. 

Those are the big players, the small teams, they might not survive, or only show up for Daytona and a handful of races in the season.

Ford, because they have only 8 cars and have restructuredtheir efforts, should be okay, but no question that the Wood Brothers are on the brink of closing shop.  Whose to say however, Ford couldn’t go belly-up?

I haven’t mentioned Toyota, because they are okay, AT THE MOMENT!  Their November sales dropped more than Fords and they spend like drunken sailors in Nascar.  (No offense meant to drunken sailors.)

However, I’m sure back in Japan they are beginning to eye cutting back on the huge outflow of money.  I think you’ll see Toyota cut back to funding and helping only a couple of teams in the Nascar Camping World Series possibly at some point this season.

So what does this all mean?  It means Nascar needs to start helping to subsidize teams with the billions they’ve pulled out of the sport in the last decade.  Purses that teams take home from each race don’t even cover the basic costs of the weekend.  They lose money just by racing!

Nascar needs to have a marketing department that works with teams of all sizes to help acquire sponsorship of any kind.  One race deals, three race deals, whatever they can get for these guys and gals.

What Nascar has to realize, just like Congress should with the LOANS NOT BAILOUTS the Big 3 are asking for is that they are all in this together, and they must work together for a common goal of allowing Nascar and the thousands that rely on it for their livelihood and their racing enjoyment to survive.

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2 Comments

  1. […] Can Nascar survive in 2009? « Exhaustfumes’s Blog archives, auto-racing, calendar, categories, congress, december-2008, doctor500-word, loans, […]

  2. […] Can Nascar survive in 2009? […]


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