Cuts at GM may affect its spending on NASCAR
MOTOR RACING
The series, which is already struggling in a sluggish economy, is nervously awaiting the auto company's decisions on sponsorships.
A few years after NASCAR was founded in 1947, a General Motors executive named Charles Wilson uttered the memorable line that "what was good for our country was good for General Motors, and vice versa."
But what's good for GM today might not be good for NASCAR. As NASCAR's Sprint Cup Series arrives for the Pepsi 500 on Sunday at Auto Club Speedway in Fontana, the sluggish economy already is making it tough for the series, race teams and tracks to attract all the corporate sponsors to help pay their bills.
GM is reeling from huge financial losses and the giant automaker plans to slash annual spending by $10 billion. Its support of NASCAR and other auto racing is not exempt from possible cuts.
GM's slump added to economic problems now buffeting NASCAR stock-car racing, the IndyCar Series, the NHRA drag-racing circuit and smaller niche circuits such as sports-car racing.
The tough economic times, combined with high gas prices, also are keeping many fans from attending races. That's causing problems not only for the series and teams, but for the top two operators of U.S. race tracks, International Speedway Corp. -- whose properties include the Fontana venue -- and Speedway Motorsports Inc.
In addition, two other major U.S. automakers, Ford and Chrysler (Dodge), are struggling as well and reportedly are weighing whether to cut back their motor sports activities.
"The Detroit manufacturers have been dissecting their involvement in NASCAR with a fervor not seen since, well, ever," Peter M. De Lorenzo, a former auto advertising executive, recently wrote on his website Autoextremist.com.
Three of the top Cup teams -- Hendrick Motorsports, Richard Childress Racing and Dale Earnhardt Inc. -- race Chevrolets. Roush Fenway Racing is the leading Ford team, Joe Gibbs Racing is the top Toyota team and Gillett Evernham Motorsports and Penske Racing head the Dodge teams.
GM hasn't provided details as yet. "We're in a very early stage of evaluating all of our marketing initiatives and I just can't elaborate" on what might get scaled back, said Terry Dolan, Chevy's racing manager.
While GM evaluates what to cut, some in NASCAR are growing more anxious.
"It concerns me," said Elliott Sadler, who drives the No. 19 Dodge for Gillett Evernham. "Everybody's scared because they don't know where it's going." While GM won't divulge what it spends on NASCAR annually, some within the NASCAR community put the figure at $120 million to $140 million.
