NASCAR Pulls Back in Tough Times

NASCAR and the Detroit Three have followed different paths for decades. While the automakers fought to survive, NASCAR thrived, growing to become America’s No. 1-attended sport, now broadcast in 150 countries and more than 30 languages.

Now, however, the economic downturn has become an equal-opportunity burden, and even NASCAR is feeling the burn. According to The Washington Post, automakers and other sponsors are pulling the rug out from under NASCAR, putting teams and races into jeopardy.

Detroit’s automakers have typically invested heavily in NASCAR, providing direct payments; technical and marketing expertise; title sponsorships to races; and equipment and fleet vehicles to teams. GM alone is rumored to have spent $120 million-$140 million a year at the peak of the racing franchise. The automakers’ chief reasoning was to reach the coveted NASCAR fan, who is considered more brand-loyal than fans of other sports.

Since NASCAR has relied more heavily on its sponsors to function than other sports have, the likely effects could include some team mergers and possibly fewer competitors in races. The Sears Craftsman Truck Series will lose big, with Dodge, Ford and Sears Craftsman pulling out of the series. So, apparently, NASCAR’s Truck Series is looking for a new title sponsor. Anyone interested?

Big Three Automakers’ Woes Affect NASCAR’s Economy (Washington Post)