Will Dodges Exit From The Nascar Truck Series Create A
Will Dodges Exit From The Nascar Truck Series Create A Void?
Recent news that Dodge would no longer support the NASCAR Craftsman Truck Series is strongly suggesting that America’s number three automaker is seriously reconsidering every single one of its marketing and publicity ventures. The NASCAR exit shouldn’t come as a surprise to anyone in light of the automakers’ big losses and huge need to raise capital.
But Dodge’s departure from NASCAR does shine the light on what could be additional changes to the motorsports industry: cash strapped Ford and GM might also be looking at ways to trim nonessential expenses turning the Dodge void into a gaping hole one that could threaten NASCAR’s survival or at least its broad appeal.
Dodge’s parent Chrysler LLC hasn’t been a big player in the truck series of late supporting only one team Bobby Hamilton Racing. The automaker is well represented in both car series winning several races this year while accumulating numerous top ten finishes. Still even in auto racing Toyota GM and Ford dominate lavishing their teams and cars with cash in a bid to pull down more wins each year.
There is another matter which could create a gaping hole in the motorsports industry that no one is talking about yet. The Big 3 automakers General Motors Ford and Chrysler are pursuing what amounts to be a 50 billion lowinterest loan package from the federal government to help the automakers transition their product lines from trucks and SUVs to small cars.
That plan is working its way through Congress and is expected to gain widespread partisan support and end up on the president’s desk for his signature. Though President Bush hasn’t tipped his hand yet on whether he’ll approve the legislation or not the legislation could be delayed until the next president takes office in January 2009.
What isn’t known is what Congress will demand in return for low cost loans. Some analysts are speculating that Congress will require that the monies fund specific programs including hybrid vehicles and alternative powered engines and related technology. A handful of people are thinking that Congress may use the loan guaranty as a way to force the automakers to divest themselves of unrelated programs which conceivably could include NASCAR participation.
Regardless of the strings attached additional changes are coming which will shape the future of General Motors Ford and Chrysler LLC. A NASCAR truck series departure for Dodge may not sound like a big deal but it underscores the financial difficulties found in America’s auto industry and the political help needed to see the companies through these difficult times.
About the writer: Matthew C. Keegan is a freelance writer who resides in Cary North Carolina. Matt provides magazine web content and article writing services to clients all over the world serving the automotive human interest and business communities. Matthew Keegan Musings is his personal weblog.
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