Is the end nigh???

[Bimmerhead]

Reports this morning out of the USA suggest that GM will run out of cash by very early 2009, barring the US Government bailing out yet another bastion of the free enterprise economy. Either way, it seems unlikely that GM will be in any position to support motor racing come 2009. If they run out of money, the result is obvious. If the Government bails them out the chances of spending the public purse on racing seems unlikely. Added to the bad news is one major analyst recommending a strong sell on GM stock and setting a price target for their shares of $US0.00!!!!!!!

And on our side of the world, did anybody see anything in the Oz Government's proposed support package for our vehicle industry that was remotely positive for the future of racing?? I didn't think so..........

[Green Hornet]

You don't need manufacturers' support to go motor racing - even at V8 Supercar level - just a car.

[mountainstar]

Well last month for some manufacturers in the USA their sales were off 50% off of last October 2007, which is an outright slaughter. Even GM had added some workers and shifts on this summer for certain cars which now they've had to cut again. So no one is buying right now. Every single manufacturer is getting hammered in the USA.

The whole reason we got in this mess was loans being given to any screwball with a heartbeat, now it's swung the other way and it's difficult for many to get credit.

[Bimmerhead]

Originally Posted by Green Hornet

You don't need manufacturers' support to go motor racing - even at V8 Supercar level - just a car.

That's true, but on both the red and blue side we see leading teams who are essentially factory outfits......pull the manufacturer money from the likes of HRT and it'll leave a BIG hole in some top team's budgets that will be very difficult to plug in the current economic climate.

[Chris - Melb]

Also, the money spent by manufacturers on homologation new models for V8 Supercar cannot be underestimated. Providing of course GM and Ford survive and there will be future new models of Commodore and Falcon!

I know it's a slightly different scenario, but Super Tourers in Australia died a quick death once the 'manufacturers' left the series.

I think V8 Supercar is stronger than that and will probably survive in some form.

[eduardo1]

There are a host of reasons why Super Touring died in Australia. Part of which is that it only ever had one, true, manufacturer team - Volvo. BMW and Audi provided varying degrees of assistance and then pulled the plug.

It died mostly because it was not as popular as V8s and was nearly as expensive to run.

I agree that V8s will survive, but that the category will change markedly over the next 5 years.

[Peter Mallett]

It may well be for the best. Returning to a more "economic" make up, where individual prep shops build the cars without Manufacturer support may be the way forward. As with the world in general (aptly described by Bimmerhead) reality has to bite. However having only just witnessed my first event, it had better not cease!

[cavvy]

Originally Posted by Green Hornet

You don't need manufacturers' support to go motor racing - even at V8 Supercar level - just a car.

Hello !!!

If you bought the Whincup car & entered for the next meeting, do you seriously think you would get a start ... no, not the licence issue .. how much do you pay for that peice of paper? $2mil maybe?

Fair dinkum ...