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
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