Skip to main content VideoAudio Sign UpLearn MoreDemo Sign UpLearn MoreDemo Sign UpLearn MoreDemo Sign UpLearn MoreDemo
Headlines
See More:
Eagles or Patriots?
Garage Pass
NASCAR Today
See more: Pictures | Audio | Video
Credit: Autostock
Credit: Autostock

Don't underestimate value of manufacturers

By Marty Smith, Turner Sports Interactive June 5, 2003
3:03 PM EDT (1903 GMT)

In the Winston Cup Series, where money changes hands quicker than the common cold in a kindergarten classroom, multi-million dollar sponsorships are the flashy quarterback and manufacturer support is the overlooked offensive guard.

Marty Smith
Marty Smith

Folks readily recognize the importance of the huge financial investments made by the Budweisers, Lowe's, Havolines and DEWALTs of the world.

But until a manufacturer terminates its support of a team -- as DaimlerChrysler did two weeks ago by abruptly severing its ties with Bill Davis Racing -- the monetary contributions of Dodge, Ford, Chevrolet and Pontiac often go unnoticed.

I'll be honest, I never paid much mind to manufacturer support. Give a team an engine block, a front clip and a stack of headlight stickers and call me in the off-season, right? Not exactly. Matter of fact, not at all.

Folks, this is a much bigger deal than you may realize.

According to a high-ranking member of a General Motors team, Winston Cup Series owners receive an average of $2-3 million per year, per team, from their respective manufacturers.

 EMAIL
Email Marty Smith
 

By that standard, Jack Roush will bank no less than $10 million from Ford Motor Company this year, and possibly as much as $15 million.

This funding is used for wind tunnel time and other research and development work, engine blocks and parts, sheet metal, hoods, trunks, deck lids, technical support and company vehicles for various team employees.

Quick fact: wind tunnel testing alone costs some $10,000 per hour.

Obviously, Bill Davis would rather not pay that out-of-pocket. Hence, he's fighting in court Dodge's allegation that he breached his contract with them.

Davis says allegations that he assisted Toyota in preparation for its NASCAR debut are false, and released the following statement Wednesday evening explaining his team's surprise at Dodge's intent to end their relationship.

Bill Davis
Bill Davis

"Bill Davis Racing is surprised by the decision of DaimlerChrysler's notification to terminate their agreement with Bill Davis Racing and to file suit alleging that Bill Davis Racing has breached its agreement with DaimlerChrysler.

Bill Davis Racing firmly believes that it has not breached the DaimlerChrysler agreement and that there is no justifiable reason for DaimlerChrysler asserting a claim that it has breached such an agreement.

Bill Davis Racing is confident that it will prevail in the litigation and that the court will agree that is has not breached its agreement with DaimlerChrysler.

Bill Davis Racing will continue racing the Dodge Intrepid in NASCAR's Winston Cup Series."

Essentially, Davis says he's done nothing wrong. Maybe not, but recent reports claim Dodge has substantial grounds for its decision.

According an Associated Press report published June 3, Dodge's lawsuit against Davis claims BDR employees built a Toyota Tundra with a Dodge engine, placed several Bill Davis Racing Co. decals on it and took the vehicle to a wind tunnel test in Marietta, Ga., claiming to be Toyota representatives.

The AP report also said that Dodge claims Davis secured a license for business at a location in High Point, N.C., with signage on the building reading "Tundra Race Truck Center."

Dodge estimated Davis had already spent some 50 to 60 percent of the factory backing they gave him, and that they seek to recoup the unspent portion.

If the above allegations are accurate, I don't blame them. I'd want it all back, especially considering that the Craftsman Truck Series is Dodge's baby, the very foundation on which their return to racing prominence is constructed.

Since joining the Winston Cup Series as an owner in 1993, Davis has fielded every make currently on the circuit. He debuted with Ford and driver Bobby Labonte, then moved to Chevrolet and Pontiac before Dodge brought his two-car program on for their 2001 return to NASCAR.

By joining Dodge, Davis received substantial factory backing and was granted access to confidential information, technology and planning, the importance of which are vast. That's one of the biggest lures to Toyota. The Japanese automaker is expected to dole out an astronomical budget to its teams in the future.

"Manufacturer branding and performance has become more and more important -- the technology that we share within our manufacturer and the financial support are very important to our teams," said Jay Frye, general manager for MB2/MBV Motorsports.

"It's the base that we're built on. Primary sponsors and associate sponsors and other income streams are building blocks, but the manufacturer is the constant base of your program."

Losing that base would hinder any team, regardless their rank, but could potentially hobble a program that's already behind. Currently, BDR drivers Ward Burton and Kenny Wallace rank 25th and 28th, respectively, in the championship point standings.

Neither driver has a top-five finish in 2003 and they've combined for just three top-10s.

Three top-10s in 26 starts? Seems to me Davis has plenty to worry about in his current program without the added load of dabbling in others.

Marty Smith is NASCAR.com's Senior Writer. His column appears each Thursday.

The opinions expressed are solely of the writer.

Superstore
AUCTIONS