Thinking The Unthinkable - Pulling out of NASCAR

[Klaus]

Thinking The Unthinkable.

Detroit. It has come to our attention that serious discussions are taking place for the first time in the conference rooms of one domestic manufacturer in particular on a subject heretofore unthinkable in Detroit. The subject? Pulling out of NASCAR. Yes, it has been mentioned before, and I have predicted it for months now - ever since the announcement was made that Toyota would be buying its way into the France family circus - but we have confirmation that not only are the discussions taking place, they're so far down the road that a timetable for a pullout has been created, taking into account the end dates of existing contracts with individual racing teams currently aligned with this particular manufacturer.

The fact that it has finally come to this is no real surprise. Several years ago, we pieced together evidence that each of the Detroit-based car companies were spending in the neighborhood of $140 million each, annually, on their NASCAR endeavors. That figure accounts for engineering and wind-tunnel work, direct payments to the teams, personal services contracts with the drivers, promotional programs, race sponsorships, advertising, etc., etc. In the Big Picture of things, when multinational companies are spending double that amount for the "privilege" of competing in Formula 1, that would seem like no big deal, but taking into account the factors that matter most to the Detroit car companies right now, that dollar figure is a very big deal.

And what are those factors? Beyond the obvious pressures being generated by Detroit's dire financial straits, one thing in particular is driving these "pulling out of NASCAR" discussions to critical levels - and that is NASCAR's full-on push and investment in its much-hyped "Car of Tomorrow." The COT is NASCAR's new "spec" car, and it takes NASCAR's template philosophy to its logical conclusions. The COT could easily be called a "NASCAR Special" or whatever the marketing name that the hype-masters in Daytona Beach will want to call it, because any connection to what the manufacturers are producing has been well and truly broken. I contend, of course, that the connection was broken long ago, but the Detroit manufacturers have been clinging to a shred of a connection and amusing themselves with the annual massaging of their various models' grille openings, nose shapes and headlight decals.

Until now, anyway.

Now, the realization has finally sunk in for one manufacturer, apparently, and taking everything into account and putting everything on the table, there's no longer the blind allegiance to NASCAR at this company, which is a seismic shift if you know anything about this town's slavish devotion to all things NASCAR on and off for the last 50 years.

NASCAR has been living large off the Detroit car companies' cash trough for so long now that they don't even care anymore, as all sense of reality left the NASCAR offices in Daytona Beach and New York long ago. The NASCAR attitude goes something like this: If a Detroit manufacturer drops out, it's "whatever" - because Toyota is stepping up to the plate. And if another manufacturer drops out, no worries, because eventually we'll just market our own NASCAR "Specials" and then we won't have to pay any manufacturer rights fees ever again.

But for one particular Detroit manufacturer it's no longer "whatever" - and messing with the sanctity of the NASCAR budget is no longer unthinkable - it's very real, very calculated and very imminent.

This Detroit manufacturer has decided that if it competes in motorsports in the future, it will only compete in three basic areas: 1. In production-based racing series that by rule and specification retain more than a passing resemblance to the cars they sell and the competitors they compete against in showrooms. 2. "Technical" efforts, in other words, engine programs for open-wheel and prototype racing series, but stopping short of Formula 1. And 3. Developing an effort to compete for the overall victory at Le Mans. Any other efforts, grass-roots racing, drag racing, etc., would be covered as the need and budget allow.

This particular manufacturer has finally come to the stark realization that their NASCAR involvement has done more for NASCAR than anything else. NASCAR exists for its benefit and profitability first and foremost - everything else is secondary to that fundamental premise. The relentless hype of NASCAR and its sponsors by NASCAR itself and its enablers at the TV networks has resulted in dramatically diminished returns for the participating manufacturers - and pretending that NASCAR's popularity has done wonders for these car companies in the showrooms amounts to the Big Lie. The fact of the matter is that the increase in the popularity of NASCAR over the last ten years has seen a corresponding decrease in the participating domestic manufacturers sales fortunes. And there's not one NASCAR-sponsored survey that can possibly suggest otherwise, no matter how hard they try to "cook" the numbers.

Immersed in a battle for the hearts and minds of American consumers, this manufacturer has finally taken the blinders off and decided that the blind devotion to all things NASCAR has run its course and now must come to a stop.

In other words, the $140 million that was previously earmarked for NASCAR, will be put to very good use.

Stay tuned, because we'll have more on this story in the coming weeks.


http://www.autoextremist.com/page3.shtml#fumes

[PARAGON]

I like me some NASCAR but I completely agree with this. There are parameters that could be laid that each car has to follow to maintain competition but allow the manufacturers keep the originality of their car's appearance.

Who even knows or cares what car anyone drives these days.

[Mrs.ssippi]

I heart the JR!!!!!!!!!!!!!!!!!

GM has to consider this tough decision if NASCAR sponsership is not helping sales. Porsche a few years ago took similar measures and since has delivered record sales and profits for shareholders. Of course the purists were critical of slashed racing budgets and the development of an SUV (Cayene), but the excellent financial results to follow impressed all in the industry.

S.

[usetosellhummer]

I bought a 06 Charger and could give a rats ass if it was or was not in Nascar. It means nothing anymore. It is not about the cars anymore becase it is not stock car racing. it is a million dollar space frame with some shaped sheet metal. Get out of Nascar GM and work on saving the auto div.

[Klaus]

The State of Racing.

Peter and Bud are right on the money about NASCAR; what was once a compelling spectacle and an excuse to drink a few cold beers on Sunday afternoon has become as predictable, slick, and generic as the Target advertising insert in the newspaper. NASCAR’s apparent goal of appealing to everyone, everywhere, has totally eclipsed its roots in honest (and occasionally dishonest) racing, fascinating characters, and regional appeal. A large majority of the drivers seem to be clones of one another, and even their back-flipping, trash-talking, and on-track crashup derby antics can’t make me care one way or the other. Does anyone doubt Cale Yarborough could whip half the field simultaneously in a bar fight? He’s only 67.

In my opinion, NASCAR has hidden its red neck under its Sparco collar. No more Southern 500 on Labor Day. Two-wide funeral processions (no passing, please) at Talladega. “Factory” teams with identical template bodies, instead of unique specials from competing shops. No more Smokey Yunicks. Does anybody really need to see Bon Jovi perform before the Daytona 500? Just give us the flyover and crank ‘em up, please. Remarkably, NASCAR fans are the ones who usually poor mouth all other forms of racing, and love to poke fun at the Euroweenies in F1 and ALMS.

Speaking of the alternatives, I am excited to see renewed interest in the various ALMS classes from Porsche, BMW, Ferrari, and now Acura and Lexus. F1 is as exciting as it’s been since the late ‘90s. There’s even optimism about reuniting the ChampCar and IRL camps for a true American open wheel series. It’s a great time to be a motorsports fan, unless you think NASCAR is the only game in town.

Rob Evans
Greenville, SC

NASCAR.

The sad truth is that you guys are correct about the "bill of goods" relating to what the NASCAR nation has become. As a long time fan since the 60's, I am deeply saddened by what has happened to what was once the most competitive racing series going. When you consider that years ago you could only catch a snippet of a two week old race on the wide world of sports to the absolute overkill which now permeates the airwaves, you can clearly see that the marketing guys run NASCAR, not the racing guys. And I can only shake my head in disgust as the car of tomorrow rears it's hideous form and makes bland racing even more dull.

I predict that as the trendy new fans get bored with this and move on to the next thing, NASCAR will have lost the true racing fan to another series. Bill France must be turning over in his grave.

Juergen Drengk
Livonia, Michigan

No more cars for NASCAR!

I couldn't agree more with every word you wrote clearly expessing what a lot of us have been thinking for years! NASCAR ceased being relevant to Detroit manufacturers many moons ago when it stopped using the cars we can all buy as a starting point for their logo-motion fest. With domestic automakers as cash strapped as they are - it's a wonder they ALL haven't drop-kicked NASCAR into the round file. Hey GM: imagine what you could do with all that dough to advertise some of the great new products you actually build instead of writing big checks to plaster your logos on androgynous blobs driving in circles touting home improvements and hard-ons? Hey Ford: can you measure how many people bought a Fusion because they recognized the grill painted on your parade float? Here's a hint: Look how NASCAR sent Taurus sales through the roof in the last five years. And finally, Hey DaimlerChrysler: You designed the 300, Charger, and the breathtaking Challenger show car with a name that instantly conveys power & prestige and instills "gotta have" in people all over the country - but it wasn't NASCAR, it was HEMI.

Thank you Dr. Bud!

Rick Sand
Boynton Beach, FL


More on NASCAR.

To Dr Bud, you are so right. One time, years ago I was in the infield of Daytona Intl Speedway, and my buddy Ron Keselowski disgustedly said, "if France could charge the sea gulls for landing on his property, he would." That sums up NASCAR.

Bob Kowal
GPW, MI

http://www.autoextremist.com/mill.shtml#mill

[KenP]

It dodn't say which manufacturer. Could be Dodge. They were absent for a while and now some teams are still running the Intrepid and not the Magnum.

BTW, can't wait for the Black #8!!!

[Mrs.ssippi]

Originally posted by KenP:
It dodn't say which manufacturer. Could be Dodge. They were absent for a while and now some teams are still running the Intrepid and not the Magnum.

BTW, can't wait for the Black #8!!!

I heart the #8!

[Klaus]

More comments:

Dr. Bud & the NASCAR Nation.

All I can say is, AMEN, brother! You hit the proverbial nail right on the head with your articulate column this week. Count me in as one of the "hundreds of thousands" of people like you that has had it with NASCAR.

D.G.
Roswell, GA

NASCAR?

You guys are absolutely right about the current state of NASCAR. I used to love watching Richard Petty and others driving cars that you might see on the street. Now, sadly the fans of NASCAR are only drawn by all the pretty colors. They won't miss the presence of the Detroit manufacturers because the new cars will still have lots of pretty colors.

Bill in OKC

Exactly how I feel...

Just finished the Road Kill column about NASCAR Nation. YES! Exactly why I’m soon to be an ex-NASCAR fan! I was a fan before the boom, and what I see now is not the NASCAR I used to love. When Mark Martin hangs it up, I’m gone. From the “Car of Tomorrow” (wtf kind of name is that anyway?), to the snotty little brats they market as The Young Guns, I’ve had enough of NASCAR. You know what? There’s a dirt stock car track right here in my hometown. There’s a nice 1/8 mile drag strip. And, there’s a decent little quarter midget track. I think all my hard-earned dollars will now go to support the local drivers out there doing what they do out of love for the sport.

I think they could use it more than the France family.

Count me as one NASCAR fan who thinks you got it absolutely right. Thanks!

Tony Spivey
Illinois

http://www.autoextremist.com/mill.shtml#mill

[DDWH]

Tiz sad.....I quit watching stock car racing when Richard Petty retired...

I won't miss the GM sponsorship of NASCAR. Put the money into the Hummer division instead.

S.

[Klaus]

The NASCAR "pull-out" frenzy continues.

Detroit. Several Internet sites picked up our story about the potential possibility of one of the Detroit automakers pulling out of NASCAR, which set off shock waves in NASCAR Nation. Autoweek even weighed into the fray (while intentionally not identifying us) by contacting representatives from the Detroit Three's NASCAR programs, and they all denied having any knowledge of the fact that any discussions of this type were even going on. Which is true, because they wouldn't know. These discussions are ongoing and are confined at the very top of one of the companies - and the people currently involved in the stewardship of this particular company's NASCAR program are specifically being kept out of the loop for fear they are too close to the NASCAR solar system and can't be objective on the issue. That's why it's business as usual for the people assigned to the company's NASCAR program, because even preliminary knowledge or the hint of these kinds of discussions taking place would cause tremendous problems. But the discussions are real - and they're dead serious.

The NASCAR love-fest seems to have run its course with this one particular automaker. One high-level executive who understandably refused to have his identity revealed had this to say, "There's a growing feeling that the popularity of NASCAR is having less and less benefit for us when it comes down to what we need to accomplish in the marketplace. It remains a promotional and entertainment vehicle for our dealers, but that's about it. The timing of these discussions is not the greatest because outsiders will think we've come to this point because of the imminent arrival of Toyota in the series, but that has nothing to do with it...at all."

It's no secret that NASCAR's booming popularity with the television networks hungry for original programming and with advertisers on an endless quest for the "hot" thing has yielded huge profits for the France family-run empire in Daytona Beach. But NASCAR "boom" hasn't exactly done much for Detroit's prospects in the market, and there seems to be a feeling in Detroit that the automakers' participation is viewed as a "given" by NASCAR instead of something that has to be courted and catered to.

"We get the fact that it's a personality-driven series, that's not exactly news," the executive added. "But we sense that there's an attitude at NASCAR that our participation is automatic. That we wouldn't dream of pulling out because the visibility of the series is too great and we'd be missing out on too much if we did. But in reality, what once was an absolute 'no-brainer' in terms of us signing up for it, year after year...has recently come under considerable question and fire."

NASCAR is insisting that its infamous "Car of Tomorrow" will have more brand identification, not less. That remains to be seen, but what else would they say? When asked about that, the executive commented, "Some of our people tell us that, too, but that's irrelevant. We're spending a ton of money in NASCAR and other than reading about the big TV viewing numbers, we're just getting less and less for our investment. We need to connect potential customers with our products, that's the bottom line. We need to get the people who don't even consider our products to give them a serious look. And the question right now for us is this: Is NASCAR the best way to do that? That answer used to be a slam-dunk 'yes.' Not anymore."

I've said this before, and I'll say it again, but NASCAR doesn't need the major manufacturers' involvement. They have boxed themselves into a corner by creating a "spec" series that in reality has little connection to the NASCAR of old, where the Ford vs. Chevy vs. Dodge vs. Plymouth vs. Pontiac battles generated rabid fan support and set family loyalties for generations. That's history now. Would people really care if it became a Toyota vs. Honda vs. Hyundai series? How about an all-Toyota-branded series? The old-school NASCAR fans who still cling to the notion that NASCAR is still what it once was would care, but how many others would? NASCAR would be wise to move to the "NASCAR Special" branding of their cars, before the manufacturers make the decision for them.

I wrote a controversial column last year about the NASCAR "Bubble" and how it will reach Detroit and the boardrooms of corporate America soon enough. Now, more than ever, I firmly believe that the oversaturation of NASCAR is contributing to the growing malaise in Detroit and to the burgeoning belief that the domestic manufacturers are getting lost in the cacophony of the endless ad messages, the relentless selling of "the show" and everything else associated with the constant marketing barrage that NASCAR has become. Detroit is looking for ways to make new inroads in the marketplace. To their credit, they're looking for answers, ideas and solutions outside the usual avenues they have pursued for the last 35 years - and their traditional entanglement with NASCAR is looming as one area that will be (and should be) seriously reevaluated.

http://www.autoextremist.com/page3.shtml