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Could a denial of a government bailout for automakers spell doom for NASCAR?
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Executives from General Motors, Chrysler and Ford will return to Congress Tuesday to present plans for a recovery and again ask for a financial bailout.
Some economists are predicting that should the automakers fail there will be a ripple affect across the entire American financial landscape.
But published reports suggest that NASCAR, which heavily relies on the Big Three for sponsorship marketing and team support, could be in trouble if the bailout is denied as well.
The television partners have already approached the sanctioning body in an attempt to find ways to cut costs.
According to Fox News, the sport could be set back "30 years" if the Big Three went bankrupt and pulled all their cars and sponsorships. Late last month GM ended its endorsement deal with golf superstar Tiger Woods, in part to save money. Ford had earlier announced their intention to withdraw factory support from the Truck Series in 2009.
"We're optimistic that Congress will help support the automakers and help them get through this very difficult time," Andrew Giangola, Director of Business Communications for NASCAR, told Fox News. "It would affect NASCAR if the manufacturers were not with us. It would [be] very strange to watch NASCAR and not see Chevy and Ford and Dodge racing around the track."
But not all may be as dark as it seems. In an article from Charlotte Examiner Caleb Howe, Dr. Larry DeGaris of Sponsorship Research & Strategy is quoted from a Fox news article, as saying he’s confident that at the very least Ford and Chevy will maintain good relationships with NASCAR. "NASCAR fans know who the sponsors are and they appreciate them and they act on it.”
According to figures released by NASCAR, the fan base totals some 70 million people with a diverse demographic and fans that are well known for their intense brand loyalty. That makes the sport hard to overlook when it comes to marketing.
"That's all the more reason to maintain a visible presence at NASCAR," DeGaris said. "I don't think it would be a good idea for them to throw in the towel."
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