It is time for Detroit to pull its products and sponsorship dollars out of NASCAR. Toyota (TM) may be able to afford the marketing luxury, but Ford (F), Chevy, and Chrysler cannot. Chevy as 14 cars, Ford 7, Dodge 7, and Toyota 9 cars on the circuit at any given time.
Fox Sports reports that it cost $20 million to $25 million to operate a team. The driver can cost another $10 million. Chrysler said late last year the it would reduce its NASCAR budget by 30%. Chrysler, moving out of Chapter 11, should not be spending a dime of taxpayer money to race. The same holds true for GM.
Forbes recently reported that NASCAR television ratings are down 21% from their 2005 peak.
Most of the manufacturers with NASCAR programs have made some cuts, but the near-collapse of Detroit should be an excuse to zero out racing budgets. Industry reports says that GM and Ford spent as much as $100 million a year on their NASCAR programs at their peaks, while Chrysler was closer to $50 million.
Do NASCAR sponsorships sell cars? That is hard to say. Do they sell $100 million worth of cars? In the current economy, it is unlikely. And, to the taxpayers supporting Detroit, it looks bad.
Douglas A. McIntyre
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
