With widespread economic hardship crippling communities across the planet, it’s hard to find any facet of the sports and entertainment industry that hasn’t been negatively impacted in some way. The world of auto racing in particular has undoubtedly felt the crisis caused by the global recession. Almost all racing teams and events rely heavily on sponsorship from major corporations and automobile manufacturers. Most of these companies and sponsors have drastically reduced the amount of money they are willing to spend on their racing teams as they furiously cut expenses to stay competitive and stay in business.
The decline in sales has forced automakers to cut the vast majority of non-critical spending and investments. Several professional racing teams, particularly within NASCAR, have some sort of sponsorship deal with a major automaker. Most of these companies, particularly in the United States, do not feel that they are receiving a valuable return on their racing investments. As standard engine types with identical chassis and similar body styles continue to proliferate in professional racing, most major automakers fear that the vehicles seen on the track may not represent their production offerings that consumers can find. off the track. The only feature that identifies the race car with a sponsor is usually the decals and logos placed on every square inch of the exterior. Many companies are now looking to share sponsorship deals with other companies to cut costs without completely reducing their participation in the races. In most cases, sponsors feel that professional racing organizations have put the emphasis on creating famous superstar drivers rather than promoting the cars they race.
Major international racing events have also been affected by the global economic downturn. The Japanese Grand Prix has alternate hosting duties between Honda and Toyota. It was scheduled to be held at Toyota’s Fuji Speedway in 2010. Due to their recent posting of record losses amid poor sales figures, Toyota recently announced that they had no choice but to cancel plans to host the event in Fuji. A Fuji Speedway spokesman has said they are not sure if another facility will be willing to host the race. Options to hold the event in another country are being explored, but it appears Honda may have stepped up and taken over host duties at its Suzuka Speedway to save next year’s Japanese Grand Prix.