by Bruce Simmons :
I know we've been told we're not in a recession, but during this non-recession we're being hit with a miserable housing market, stupid fuel prices, and everything else dependent on fuel prices and housing responding likewise. I guess we can call this an adjustment phase. Nothing new. It's just part of the cycle.
Unfortunately, part of that cycle in this economy is when major companies and brands (IE: Ford, Toyota, Dodge) reevaluate how they spend money or support marketing efforts. Now we can add GM to this list.
As the major car manufacturers respond to this economy, they've been laying off workers and other cost cutting measures. That includes how they're spending money on their racing support.
All levels of GM supported motorsports, including NASCAR, Sports Car Club of America, NHRA, USAC midgets/sprints and the American Le Mans Series are not immune and GM looks like they will be changing their "marketing footprint" in NASCAR and the other racing venues.
This makes a bit of logical sense. As they cut jobs and production to save money, they're dropping millions in research and development not to mention whatever they've spent baiting Tony Stewart under the Chevy logo again. Funding this kind of racing-support of championship caliber teams can cost GM up to $30 million a year and they support 12 teams right now.
Though it looks bleak, one aspect that is on the bright side of things is how NASCAR fans are the most diligent in recognizing and supporting NASCAR sponsors and NASCAR is still viewed as a good investment. The different entities just have to lean up the excess outflow of funds right now. In my mind, this means that if you're not housing a recent champion or hot commodity, you might find less help from your manufacturer and this probably means more outside investors in the individual teams. Sigh.
Source: http://www.theolympian.com
I know we've been told we're not in a recession, but during this non-recession we're being hit with a miserable housing market, stupid fuel prices, and everything else dependent on fuel prices and housing responding likewise. I guess we can call this an adjustment phase. Nothing new. It's just part of the cycle.
Unfortunately, part of that cycle in this economy is when major companies and brands (IE: Ford, Toyota, Dodge) reevaluate how they spend money or support marketing efforts. Now we can add GM to this list.
As the major car manufacturers respond to this economy, they've been laying off workers and other cost cutting measures. That includes how they're spending money on their racing support.
All levels of GM supported motorsports, including NASCAR, Sports Car Club of America, NHRA, USAC midgets/sprints and the American Le Mans Series are not immune and GM looks like they will be changing their "marketing footprint" in NASCAR and the other racing venues.
This makes a bit of logical sense. As they cut jobs and production to save money, they're dropping millions in research and development not to mention whatever they've spent baiting Tony Stewart under the Chevy logo again. Funding this kind of racing-support of championship caliber teams can cost GM up to $30 million a year and they support 12 teams right now.
Though it looks bleak, one aspect that is on the bright side of things is how NASCAR fans are the most diligent in recognizing and supporting NASCAR sponsors and NASCAR is still viewed as a good investment. The different entities just have to lean up the excess outflow of funds right now. In my mind, this means that if you're not housing a recent champion or hot commodity, you might find less help from your manufacturer and this probably means more outside investors in the individual teams. Sigh.
Source: http://www.theolympian.com
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