Cup teams fear Detroit's woes could trickle down

CHARLOTTE, N.C.

Ford lost $8.7 billion in its most recent quarter.

General Motors nearly doubled that, announcing Friday that it lost $15.5 billion in the past three months.

Chrysler, which operates Dodge, saw its U.S. sales fall 22 percent in the first half of 2008, compared to the same period last year.

It's numbers like those that create concern among NASCAR Sprint Cup teams. Some have even begun making contingency plans in case the Detroit companies roll back their long-standing support.

Cup teams rely on manufacturers for financial and technical support that totals more than $100 million per car company, according to a recent USA Today report. Without such support, many small and midsize teams would face struggles far greater than they now experience. Larger teams would be less likely to be as affected because they have more resources, widening the competition gap.

Toyota teams don't have as much to worry about. While Toyota also faces declining sales, its financial standing is stronger than that of its competitors.

"The team owners, I would be a little nervous about the position that the car companies are in to be able to provide the resources to develop technology" for racing, said ESPN analyst Andy Petree, a former Cup car owner.

All three Detroit manufacturers have given no indication that they'll leave NASCAR. Sprint Cup racing remains the country's top motor-sports series in terms of attendance and TV ratings, and it's hard to ignore all those consumers. But with losses mounting, each car manufacturer is expected to reassess how much money it puts into each program.

"We still see racing as a significant return on our investment, and that's why we're still in it," said Doug Hervey, North American Operations Manager for Ford Racing Technology. "We're still in the planning stages for the future, but as it looks right now we'll be in the sport."

Questions have been raised about General Motors. When company officials announced plans last month to cut $10 billion in costs, its motor-sports program was mentioned. In the Cup series, GM backs Hendrick Motorsports, Richard Childress Racing and Dale Earnhardt Inc., among others. With Tony Stewart becoming part owner of a Chevrolet team next year, it's likely his team would see increased support from GM. The company wouldn't want see a two-time series champ fail with its cars in his stable.

But what General Motors does will be based as much on the fans as the drivers.

"We race to win, so if you're going to be there, you've got to do it properly," said Terry Dolan, manager of Chevy Racing. "The audience that is there has to care about the involvement, and we need to get a return on our investment.

"If we can successfully answer those questions, that puts us in a pretty good position. Keep in mind, we've got a business to run. It's all about selling cars and trucks."

Mike Delahanty, senior manager of Dodge's motor-sports programs, said nothing has changed from Dodge's perspective, but he acknowledged "that everything is getting scrutinized."

Dodge officials promoted a one-team approach among its competitors at the beginning of the season. The company encouraged its teams to have that philosophy when the manufacturer returned to the Cup series in 2001, but teams had drifted apart through the years. Delahanty said teams are sharing more now.

"They see what is happening," Delahanty said of the economic woes, "and they're planning for maybe (they) don't have as much discretionary stuff."

Mark McArdle, director of competition for Gillett Evernham Motorsports, already has done that.

"You're certainly having to look at scenarios that 12 or 24 months ago wouldn't have even occurred to you," he said. "This is not the first time I've been through it in my 30 years. I'd have to say that we're headed for a time that is as tough as it has ever been, but, no, we're not there yet."

Ford's Hervey admitted his staff has become "leaner," but that just means "we have to work smarter.

"We've deployed our resources in the appropriate manner to the teams that we see fit, based on the need," he said, noting how the company helped Roush Fenway Racing improve its Car of Tomorrow program last year. "Right now, I can say we're providing as much support as (teams) can handle."

Life without manufacturer support is not easy, as Bill Davis Racing crew chief Tommy Baldwin knows. He was there when Dodge accused the team of helping Toyota develop equipment. The company pulled its support and sued the team.

The agreement between Dodge and Bill Davis Racing that was to have run from 2000-05 was worth more than $20 million to the team in sponsorship and payment for development work. The contract called for Dodge to provide engines, body parts and accessories. Without that support, the team struggled.

"You've just got to watch your p's and q's," Baldwin said of having limited or no manufacturer support. "Maybe you don't hire as many people or maybe you don't buy as many tires during a test. Man, not having manufacturer support is pretty tough in this

age."