With apologies to the thousands of American automobile manufacturers whose careers are on the line, the news out of Washington this week will likely change NASCAR as we know it.
The idea a few months ago of one or more manufacturers pulling out of NASCAR seemed to be popular only among doomsayers. Now, if you read or listen to automobile insiders, it will take a financial miracle to keep not one, but two of NASCAR’s three American manufacturers from leaving the sport.
The Obama administration told Chrysler that it will get no more bailout money and has 30 days to get its financial matters in order. Again, barring a miracle, Chrysler (and NASCAR manufacturer Dodge) will be handed over to a bankruptcy judge next month. All NASCAR contracts will be voided, meaning the already-struggling Dodge teams will be put even further behind.
The General Motors story is nearly as sobering. After being turned down for $17 billion in aid, the manufacturer was given until June 1 to eliminate billions of dollars in costs. While no one expects Cheverolet to go under, parent company GM also is likely headed to bankruptcy, though only to reorganize, not liquidate.
Either way, it’s nearly impossible to believe any reorginazation would include NASCAR support as it currently is, estimated at $140 million annually. Ford already has cut its support dramatically after suffering a reported $14.6 billion loss in 2008, and even Toyota, which lost $1.6 billion last year, has indicated that it will not expand its NASCAR support.
Chevrolet has been a staple of NASCAR racing, especially in its boom years. Hendrick Motorsports, Richard Childress Motorsports and, before the switch to Toyota, Joe Gibbs Racing, have won multiple championships with the bow-tie group. Rick Hendrick is the most powerful owner in NASCAR and owner of several GM dealerships.
Prior to the start of the season, he addressed the financial struggles of the manufacturers, but even an insider such as Hendrick could not have foreseen what’s happened since.
“It would be hard to imagine NASCAR without Chevrolet or Ford,” Hendrick said in Janurary. “Stock car racing and Chevrolet have gone hand in hand for decades. Obviously, it’s a partnership that’s worked or it wouldn’t have lasted this long. Times are tough, but they’ve been tough before.”
Whatever the problems in Detroit are — antique management ideas, unions that carry too much power, or a general lack of vision — they are problems that won’t be solved in the next few months. What is clear is that, unless the economy turns around and banks start lending money and Americans start spending it, purchasing a new car is a luxury most people can’t afford.
Though Sprint Cup drivers would prefer to talk about racing, they know what’s going on.
“My biggest issue about all of that is just getting the economy moving so people can buy cars again,” RCR’s Jeff Burton said Friday as the series hit Texas. “I know that it’s a difficult time, but I believe that they will come back, but it’s going to take a while.”
So, what happens if the worst-case scenario plays out and NASCAR teams are left without manufacturer support? The guess here is that it will not only survive, but it might even get better in the future because of it.
The COT, I believe, was developed in part because of this possibility. The cars are already nearly identical, which lessens the ability for manufacturers to market Sprint Cup cars as “stock.” Sure, Dale Earnhardt Jr. drives what is called a Chevy Impala SS, but there isn’t a thing about that car that looks like the stock version.
NASCAR has a choice. It can either seek outside support, say from Honda or, dare we mention it, Volkswagon, and make NASCAR a truly international entity. Sure, it would alienate hardcore fans at a time when NASCAR officials are trying to keep them happy. But, let’s be honest here, the opportunuty to gain millions of fans in Europe or Asia at the expense of losing some locally is a no-brainer for NASCAR.
The other option would be to limit the amount of manufacturer support, which would make it more financially feasible for those in America and outside to get in. What would be wrong with eight or 10 manufacturers in the sport? The more the merrier, right?
The bottom line is this: significant changes are coming to NASCAR very soon. The question is what will NASCAR and its teams do about it?
Lindsey Young is a sports writer at the Chattanooga Times Free Press who started work at the Chattanooga News-Free Press 24 years ago. He covers the Northwest Georgia prep beat and NASCAR. Lindsey’s hometown is Ringgold, Ga., and he graduated from Lakeview-Fort Oglethorpe High School. He received an associate’s degree from Dalton Junior College (now Dalton State) and a bachelor’s degree in communications from UTC. He has won several writing awards, including two Tennessee Sports ...
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