Give 2 reasons Y GM wont cut and run from NASCAR .After GM posts $15.5B 2Q loss, 3rd-worst in its history

Question

GM posted record sales in Europe, and revenue outside North America rose by $1.7 billion to $20.8 billion, but North American revenues fell by nearly $10 billion to $19.8 billion as sales in the region fell 20 percent

So why would would they throw more money at NASCAR when its not working

Answer 1

Money and more Money...They need to have the publicity...They cannot afford to lose this...All the cars run the same chevy blocks!!!!!!!Toyota,ford and mopar!!!!

Answer 2

1. The marketing helps GM tremendously.

2. The profit they make from NASCAR.

Answer 3

Companies have different funds set up for different projects. If the project is funded, and closing it really wouldn't impact the firm's cash flows, they'll leave it alone. It's a form of advertising for them, too. They must absolutely ADORE Smoke.

Don't believe all the numbers you read. The accounting for profits/losses/net income in these giant corporations is so complicated and on the edge of illegality that I couldn't begin to explain it.

They probably pay the CEO more than is in the NASCAR fund, and get more bang for the buck from NASCAR. Don't worry, if it would help the bottom line, they'd cut it in a heartbeat. (emiller1, you've got it right!)

Answer 4

Because racecar drivers love cereal

Answer 5

1. Suzuki

and

2. Hyundai

are not ready to fill the void if they depart

yet.

Answer 6

GM spends pennies on NASCAR compared to their main business of running a car company.  NASCAR is cheap advertising for all 4 companies involved.

Most of those losses were write downs for reorganizing.  They bailed out Delphi (again) and American Axle, had to deal with the American Axle strike shutting down 30+ GM plants for 3 months , the UAW striking at any GM plant that was making money so they could get GM to bail out American Axle, buy outs for thousands of over paid UAW people.

Everybody had a bad 2nd quarter in the US market.  Truck sales tanked.  Even Japanese companies had massive sales loses and lost money.

Answer 7

Get over it, Toyota fan!!! It doesn't take a genius to figure out that the struggling U.S. economy along with rising fuel costs are driving vehicle sales to a new low here in the States. SO WHAT if they lost some money last quarter. The money they spend in DOMINATING NASCAR (yeah, that's right, get over yourself) isn't even a DROP in the bucket of what they still have to spend.Besides, they have already announced that they will CUT BACK on spending in NASCAR next season.

If you are so dead-set against seeing U.S. auto manufacturers compete in a U.S. racing series, you are more than welcome to search abroad.

Answer 8

OK,,,now I get it.  You and all your id's are pre-occupied with GM because you work for them, correct?  I am sorry to hear you are losing your job.  But do you seriously think if they cut back on NASCAR support that you would still have your job?  I don't think so.  Sorry.

#1JRFan

Answer 9

It will not be their choice  If they have to reoranize which would be better than folding  Goverment will make them cut out all un necessary spending annd a majority if not all funding to NASCAR is history. For Nascars best interest it be better if they sold to Toyota or who ever and with a influx of cash Chevy may be able to keep funding racing

Answer 10

Research shows it works for sales.

Answer 11

lady mala is correct, when i worked at chryslers engineering center in the early 70's we were writing off cars three times that were used in testing. first they were used for emission testing, write off. then most went to endurance testing, write off. last but not least was impact testing. aside from this i am sure there are many other ways they fudge  the numbers.