GM to cut motorsports sponsorships

[doh]

http://www.reuters.com/article/marke...0080715?rpc=44

General Motors Corp.will reduce spending on motorsports sponsorships as it cuts costs in an attempt to survive a sharp decline in industry sales, a top executive for the U.S. automaker said on Tuesday.

"There are some elements of motorsports that are very effective means of promotion and communication with certain customer segments. The ones that are less are the ones that will be ... scaled back," GM North America President Troy Clarke said at a news conference.

"It will be gradual, by and large, because we have contractual relationships or support relationships that we'll begin to wind down where that is appropriate," he added.

GM said Tuesday it will cut overall costs by $10 billion, suspend its stock dividend and sell up to $4 billion in assets. The restructuring was forced by high gas prices, the shift away from trucks and SUVs, the weakest U.S. auto sales in a decade and growing investor doubts about the Detroit automaker's ability to weather the downturn.

While Clarke declined to provide details about the planned cuts, GM spends millions of dollars annually with the National Association for Stock Car Auto Racing (NASCAR), the National Hot Rod Association, the American Le Mans Series and other groups.

NASCAR is most at risk because GM spends so heavily on the stock car racing organization's three leagues, involving cars and pickup trucks, analysts said.

GM spends about $120 million to $140 million a year on NASCAR, including sponsorships and promotions, advertising, and payments to teams and drivers, according to Peter DeLorenzo, publisher of website Autoextremist.com.

"The promotional aspect of their involvement with NASCAR is going to be the thing that comes under severe scrutiny," he said. "There are certain people, especially within GM, who have been licking their chops to get at the NASCAR budget."

After track sponsorships and promotions, U.S. automakers likely will move to trim national advertising related to NASCAR before finally possibly cutting back on spending for the teams and NASCAR's three leagues, DeLorenzo said.

NASCAR officials have watched the struggles of GM and the other U.S. automakers closely, but said their sport offers sponsors a great way to reach its more than 75 million fans.

"Attendance has held up well even amid the rising costs of traveling to races," spokesman Andrew Giangola said. "(TV) ratings have increased this season. NASCAR continues to have the most Fortune 500 involvement of any sport."

GM's Clarke said the automaker spends a large amount on motorsports, but "any good manager can go in and get 10 or 12 percent of something" in spending cuts.

[NfamousZ24]

I wouldn't look at NASCAR cuts.

But more of SCCA and Drifting cuts. lulz Drifting

[JerryL]

Originally Posted by NfamousZ24

I wouldn't look at NASCAR cuts.

But more of SCCA and Drifting cuts. lulz Drifting

Not much money to be saved in SCCA and drifting. More likely in NHRA, Offroad, and IMSA...then the dreaded ALMS Corvette Racing team which should survive, because it has world wide impact.

Lot's of fat in NASCAR with the truck series, etc.

[sigma]

NASCAR should have been significantly decreased a LONG time ago. There is no reason for GM to keep spending this much on those teams especially since NASCAR is moving to the "Car of Tomorrow" eliminating all differences between the cars on the tracks.

[RamJet502]

I hate to say it but NASCAR is dying, let Toyota have the mess.

[Black04GTO]

Originally Posted by sigma

NASCAR should have been significantly decreased a LONG time ago. There is no reason for GM to keep spending this much on those teams especially since NASCAR is moving to the "Car of Tomorrow" eliminating all differences between the cars on the tracks.

I agree 100%. The days of "win on Sunday, sell on Monday" are long gone...along with the Monte Carlo SS.

[88Fiero]

Originally Posted by RamJet502

I hate to say it but NASCAR is dying, let Toyota have the mess.

I dont follow it anymore. It just isnt like it used to be.

[SS3]

Originally Posted by NfamousZ24

I wouldn't look at NASCAR cuts.

But more of SCCA and Drifting cuts. lulz Drifting

Millions and millions spent on NASCAR did ZERO for the Chevy Monte Carlo - it died. NASCAR is not cost effective, especially in the current climate.

[mjd1001]

Originally Posted by 88Fiero

I dont follow it anymore. It just isnt like it used to be.

Sadly, I agree. I'll watch Daytona and Talledega, some short tracks, but that is it. The 1.5-2.0 mile tracks are boring...the cars just spread out, with 10+ car lengths between all of them for most of the race and drive around in circles.

I'm only speaking for myself, but if Nascar wanted me to watch more races..get rid of some of the events at Michigan, Pocono, Atlanta, California, Vegas, etc...and build more short tracks like Bristol or Drafting superspeedways like Daytona or Talledega.

[Hunid Racks]

Originally Posted by RamJet502

I hate to say it but NASCAR is dying, let Toyota have the mess.

I agree 1000%

[XCR440SP]

Originally Posted by NfamousZ24

I wouldn't look at NASCAR cuts.

But more of SCCA and Drifting cuts. lulz Drifting

I see it the opposite, Nascar is bigger, but it costs MUCH more and % does not return investment like the smaller series (go to a race and look at all the Hondas that never have raced nascar). Drifting, Rally, and other smaller divisions have higher customer loyalty than the big name stuff. Open wheel doesn't have the brand recognition to be very succesfull. The road racing (IMSA, ALMS, SCCA, etc) have brand recognition and loyalty, but BMW, Porsche, and even Mazda have the big following there and its going to be a tough nut to crack except for Corvette and thats not what GM needs to move, it needs it main stream vehicles to have recognition. Also some series have something to offer in return for the production cars, I'm betting the Le Mans effort has wonders for Production Corvette performance and durability. Nascar can't say that, unless GM's going back to carberators and 4 speeds, and using Ford 9" axles, not much to be learned.

Think of the recognition GM could achieve if they quit Nascar and spent 1/2 the money at local tracks, they'd be able to blanket the country and the local crowds that go to the small local events are also the ones that become brand loyal due to racing.

[Slowrider5]

AutoExtremist called this one.

http://www.autoextremist.com/fumes1/?currentPage=2

He'll probably be bragging about it this Wednesday too.

[sigma]

Originally Posted by SS3

Millions and millions spent on NASCAR did ZERO for the Chevy Monte Carlo - it died. NASCAR is not cost effective, especially in the current climate.

I'm sure the fact that the Monte Carlo was hideous had absolutely nothing to do with the fact that it NEVER sold well. A better case study would be with the Impala, which is GM's current car in the NASCAR series and you'd be hard pressed to argue that all of that money has helped the Impala at all.

[minnfang]

Originally Posted by sigma

I'm sure the fact that the Monte Carlo was hideous had absolutely nothing to do with the fact that it NEVER sold well. A better case study would be with the Impala, which is GM's current car in the NASCAR series and you'd be hard pressed to argue that all of that money has helped the Impala at all.

I'm guessing that NASCAR driven brand loyalty has sold a lot more Chevy trucks than Impalas.

[ScottS]

Originally Posted by NfamousZ24

I wouldn't look at NASCAR cuts.

But more of SCCA and Drifting cuts. lulz Drifting

Do you think Nascar sold more Monte Carlos in the last ten years than SCCA autocross and SCCA Spec Miata sold Miatas? I don't.

Grassroots is where it's at. Those are the people actually buying cars because of racing. You think Mazda hasn't learned anything useful for its production cars from sponsoring that?