Wednesday, February 08, 2006

Editorial: NASCAR - Toyota partnership here to stay

Well, I promised something over a week ago. When I was writing this, I had to keep the subject racing oriented as opposed to something better presented on the financial page of the local newspaper. Instead, I want to present a few facts and get the point across that to NASCAR, it's about the dollar.

When Toyota made people start to whisper by entering in the Goody’s Dash Series, there was some leeway given as the V6 Toyota Celica entered fit the model of the series.

Again, when the Toyota Tundra came into the Craftsman Truck Series a few years ago, there were rumblings and questions of how Toyota would be able to compete against the big boys without an existing model motor equivalent to the push-rod V8’s mandated by the series. But again, Toyota proved them wrong by finishing second last year in the truck championship and winning 9 of the last 15 races, and will field a truck for defending champion Ted Musgrave.

Now with 2007 looming the new Camry looks to take the Nextel Cup series. They’re coming in with high-profile sponsors such as Red Bull as well. This brings me to my point. NASCAR is not a technology-development series like Formula 1 or the World Rally Championship. There’s nothing to prove technologically here - the spaceframes and pushrod motors are technology dating back nearly 40 years (though the technology used to squeeze every bit of speed out of those limits is state of the art).

The France family, General Motors, Ford, Daimler-Chrysler, and Toyota know that NASCAR is a MARKETING platform. The races are just as much three-hour long commercials as they are sporting events. No other sports league can claim that. Their marketing is between the action, NASCAR’s marketing is during the action, with “solo performances” thrown in occasionally.

So if you’re high atop your throne in Daytona and you look down, you’ll see:

· The #1 selling car in the U.S. is the Toyota Camry

· They’ve established long standing reputation with consumers as a quality brand

· While GM, Ford, and Daimler-Chrysler plants are closing, Toyota employs over 20,000 at 12 plants in the U.S., with plans for more

· Toyota will become the world’s largest auto manufacturer, overtaking General Motors because of GM's downsizing

· Toyota produces a full line of vehicles, from Trucks to family cars, sports cars, luxury vehicles (Lexus), etc. In other words, they hit all of NASCAR’s target markets and any other markets NASCAR wants to work in the future.

If a company is committed that deep in the U.S., then you know their marketing budget has to be HUGE. If you’re the France family wouldn’t you want a piece of that pie?

Now, just showing up with a car doesn’t imply success. If it’s a loser on the track, NASCAR marketing isn’t going to help a bit. Toyota isn’t going to run away with anything, NASCAR will make sure of that.

But you can darn well bet they aren’t going to let Toyota leave anytime soon, either.

-Jason

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