Alex Meshkin » General Motors

NASCAR – Is it Still Stock Car Racing?

Alex Meshkin — Mon, 21 Jul 2008 17:36:09 +0000

On Friday, Wired published an article titled – The Car of Tomorrow Has an Extension Cord – a discussion of the future plug-in hybrids coming soon to your local car dealer showroom. This discussion further demonstrates the continued divide between NASCAR and all automakers.
The founding principle and most basic concept behind NASCAR was and is “stock car” racing; and the ability for carmakers to demonstrate their performance of a car that closely models a car in the local showroom. This principle is no longer applied in NASCAR and is one of the basic problems existing for carmakers today in justifying their marketing expenditures in NASCAR.
“Stock car” doesn’t mean “old” or antiquated but means the use of current technologies which are closely tied to their street car equivalents. The age old adage of “Win on Sunday and Buy on Monday” is no longer applicable in NASCAR – and is contributing to the eroding sales of the Big 3. Furthermore, the COT is alienating carmakers by further dividing marketing objectives of the carmakers and the value proposition of NASCAR.
The future of carmakers exists in plug-in hybrids – the combination of battery power and biofuels. According to Wired; it all starts in 2010. General Motors (GM) promises to have the Chevrolet Volt rolling into showrooms by then. Toyota says it will roll out a small fleet of plug-in Prius hybrids to see how they do. Volkswagen has similar plans for its plug-in Golf. And Fisker Automotive hopes to have a few dozen pricey Karma sedans in driveways within 18 months. Ford and others are moving more slowly, aiming for 2012 and beyond.
It may surprise some to learn that widespread adoption of plug-in hybrids isn’t in the distant future and may be in consideration for your next car. According to Mike Omotoso of J.D. Power & Associates “…we could see critical mass by 2015.”
NASCAR has a real opportunity for leadership – and can provide automotive manufacturers a real marketing platform that demonstrates alternative energy as performance cars – that are viable, affordable and energy efficient – and return NASCAR to its roots as “stock car” racing at its best.

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Update: GM Cutting Back on NASCAR Spending

Alex Meshkin — Thu, 17 Jul 2008 21:31:47 +0000

According to the Associated Press (AP) today, General Motors officially announced their first round of motorsports spending cuts. Troubled General Motors has notified two racetracks that operate NASCAR events that their current contracts will not be renewed as part of an overall $10 billion cost-cutting program.
Speedway Motorsports Inc., which owns eight tracks that hold NASCAR events, already has been told GM will not renew contracts at two tracks — New Hampshire Motor Speedway and Bristol Motor Speedway.

Scott Cooper, vice president of communications for SMI, said nobody is panicking.

We’ve seen bad times with the economy before, and we’ll likely see them again, Cooper said Wednesday. At the end of the day, we’ve still got a sport that pairs up well with the American car manufacturers. We believe the sport will continue to have tight relations with those manufacturers.

Read the whole article at ap.google.com

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Cost-Cutting at GM Racing – NASCAR a Branding Problem?

Alex Meshkin — Wed, 16 Jul 2008 16:27:38 +0000

The day is fast approaching when the automotive manufacturers are going to reign in their motorsports budgets to reflect the current state of the automotive industry. The fundamental issue with NASCAR as a branding tool for the car companies is that it fails to demonstrate the future product portfolio and demands for “green” vehicles.
Even though financial uncertainty for the Big 3 car companies is really nothing new – surging fuel prices have disproportionally affected the U.S. carmakers vs. their foreign counterparts. This is because of their reliance on profits from the sale of light-trucks and SUVs. In May, GM saw a 37% decline in light truck and SUV sales; and subsequently its share of the overall U.S. market dropped below 20%, a new low for the automotive giant that in 1980 had 45% of the U.S. market.
Over the past couple of years, as the trends of high fuel prices and the decrease in light truck and SUV sales became a reality – NASCAR adopted rules and policies to further alienate the automotive manufacturers from the sport. Instead of embracing alternative energy branding or a “green” platform – the recent implementation Car of Tomorrow (COT) – is nothing more than an antiquated “led sled” and continues a branding platform that labels the U.S. carmakers as gas guzzlers.
Some may ask, but isn’t racing and “green” technology or fuel efficiency an immediate dichotomy? The simple answer is NO – at least it doesn’t need to be.
I am the last person to believe that Ethanol fuel is the answer to our energy crisis or believe it will be the long-term solution for consumers and carmakers alike. However; one must recognize the success of Honda and their racing program in the Indy Racing League (IRL) – the IndyCar Series.
Back in 2006, the Indy Racing League (IRL) and IndyCar Series adopted the use of Ethanol fuel instead of traditional gasoline to provide Honda (their sole engine provider and automotive manufacturer) a marketing platform to appeal to the growing consumer demographic interested in alternative energy sources and “green” technology. When you compare recent sales results of Honda versus GM, Ford, Chrysler and Toyota – you must see the correlation between their brand positioning and the motorsports platform of the IndyCar Series. As of May 2008, Honda is now selling more cars than Chrysler.

Last week, GM racing director Mark Kent said that every level of motorsports that GM supports-from the giant stock-car racing series NASCAR to the grassroots Sports Car Club of America-is being evaluated. “Racing is not exempt (from cuts),” Kent said last week. Troy Clarke, president of GM North America, added: Motorsports “have not gone without scrutiny. I’m not going to get into specifics about NASCAR. But there will be modifications-changes in our marketing footprint-in this area.”
You must wonder – why is NASCAR asleep at the wheel? Over the past decade, NASCAR has developed a phenomenal market platform for all types of companies – but without the financial and marketing support of the carmakers – NASCAR teams can’t afford to operate.
The time is now for NASCAR to embrace tomorrow’s future – alternative energy and fuel efficiency branding is required for the long-term viability of the sport as a marketing platform for the automotive manufacturers.

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