With widespread economic hardship crippling communities across the globe, 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 are heavily dependent on sponsorship from major corporations and auto 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 remain competitive and stay in business.
Declining sales have forced automakers to cut the vast majority of non-critical spending and investment. Several professional racing teams, particularly within NASCAR, have some form of sponsorship agreement with a major automobile manufacturer. Most of these companies, particularly in the United States, don’t feel like they’re getting 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 do not represent their production offerings that consumers may encounter. off track. The only characteristic that identifies a 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 reduce costs without completely reducing their participation in racing. In most cases, sponsors feel that professional racing organizations have placed an 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 hosted at Toyota’s Fuji Speedway in 2010. Due to their recent posting of record losses amid low sales figures, Toyota recently announced they had no choice but to cancel plans to host the event at Fuji. A Fuji Speedway spokesperson 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 that Honda would have stepped up and taken over hosting duties at its Suzuka Speedway to salvage next year’s Japanese Grand Prix.