GM Could Make Motorsports Sponsorship Cuts, Including NASCAR
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General Motors Reevaluating Its
Involvement In NASCAR |
General Motors execs yesterday amid another round of cost-cutting measures warned that "nothing at GM is off-limits -- including its high-profile NASCAR program," according to Mike Brudenell of the DETROIT FREE PRESS. GM Racing Dir Mark Kent said that "every level of motorsports that GM supports ... is being evaluated." GM competes in NASCAR, the NHRA, USAC, the American Le Mans Series and the Sports Car Club of America. GM North America President Troy Clarke said, "I'm not going to get into specifics about NASCAR. But there will be modifications -- changes in our marketing footprint -- in [motorsports]." Brudenell notes funding a championship-winning team like Hendrick Motorsports "costs GM at least $30[M] a year." Ford Racing PR Manager Kevin Kennedy: "There's no change at this point to our Cup team support. Marketing programs (at Ford) across the board have been cut, and racing in general is part of that. Yes, Ford Racing is looking for a lot more efficiencies. Efficient and scrappy is what we want to be." Dodge has long-term contracts with NASCAR teams and tracks, including Las Vegas Motor Speedway, Dover Int'l Speedway, Talladega Superspeedway and Darlington Raceway, and Dodge Motorsports Senior Manager Mike Delahanty said that "in view of the tough economy, Dodge was in a 'wait-and-see' position in regards to motorsports." Toyota Motorsports Manager Les Unger said the company is "currently reviewing plans we had in place for the entire 2008 season." Unger: "Relative to other sports, NASCAR is still the place to be, but with the increase in gas prices, the drop in the housing market and layoffs, we all have to take a very close look at our budgets" (DETROIT FREE PRESS, 7/16).
TIES THAT DO NOT BIND: BRANDWEEK's Steve Miller noted GM has already "started pulling back from some of its sports ties." Cadillac has "opted out as a sponsor of the Masters golf tournament," and GM also said that it "would not ... renew its $1[B] sponsorship" of the USOC after the Beijing Games. The motorsports cutbacks "are significant, considering GM, and particularly Chevrolet, have been involved with auto racing since the mid '60s." Autoextremist.com Editor Peter DeLorenzo said that the "predicted decrease in racing spend overall could account for 20% of an annual motorsports budget that was nearly $100[M]" (BRANDWEEK.com, 7/15).
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