The wilting economy has impact on just about every facet of our lives. Fans of auto racing will not be excluded in this. General Motors, struggling to remain number one as the worlds auto producer has been looking at ways to stop the bleeding. Money spent in auto racing is on the table for scrutiny.
“Like all areas of the business, these areas have not gone without a certain level of scrutiny, and there will be modifications and changes in our promotional footprint in all of those areas,” Troy Clarke, president of GM North America, said Tuesday. “We’re not going to talk about the details today, and specifically NASCAR, but all those areas have been reviewed and will continue to be as we work these action plans through.”
Scott Cooper, vice president of communications for SMI, said nobody is panicking.
“We’ve seen bad times with the economy before, and we’ll likely see them again,” Cooper said Wednesday. “At the end of the day, we’ve still got a sport that pairs up well with the American car manufacturers. We believe the sport will continue to have tight relations with those manufacturers.”
NASCAR spokesman Ramsey Poston said GM’s news was not surprising.
“Obviously, we’re going to continue to speak to all the manufacturers on a regular basis,” Poston said. “But NASCAR has served them well, and they are getting a good return on their investment. And they know NASCAR has a huge audience and loyal fan base eager to buy their products.”
Sponsorships of specific race events and tracks are sure to be gone. How these cuts will impact teams is yet to be seen. Grumpy has read where GM’s Chevrolet division puts about $30 million per season into Hendrick Motorsports. Other Chevy teams like, RCR, DEI are sure to also be on the take from the General.
This development is not limited to teams and tracks tied to GM. Ford, Chrysler and even Toyota are suffering from slumping sales. Skyrocketing gas prices have dropped the bottom out of the lucrative truck and SUV sales. Buyers are moving to more thrifty compact cars and hybrids. The manufacturers cannot just make that kind of change overnight. Grumpy thinks they should have seen it coming when gas prices shot passed the $3.00 level.
For the fans, we are seeing with our own eyes the impact of the economy. TV cameras pan over the grandstands during race coverage. The empty seats are everywhere. People cannot or will not suffer the high fuel cost along with high ticket prices, extortion rates for track consessions and hotel rates that climb for the event weeks. The fans are speaking with their wallets. The NA$CAR circus comes to town with a license to print money. Perhaps those times are over. At least for now.
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