Filed under: Competitive strategy, Ford Motor (F), General Motors (GM), Marketing and advertising
NASCAR may be a good place to test engines, but the three U.S. car-makers all maintain budgets for the wild races which top $100 million each. A Chrysler executive quoted by Reuters explained the love affair by saying that “there are still 75 (million) to 80 million NASCAR fans out there … and being in the vehicle business, this is exactly the types of folks we want to be speaking to.”
For companies like General Motors Corp. (NYSE: GM) and Ford Motor Co. (NYSE: F) who count on middle America and pickup buyers for most of their sales, the venue is probably priceless. It is notable the the more successful Japanese manufacturers tend to keep a lower profile. While GM’s U.S. market share is 25% overall in the domestic market, the automobile company says that number is closer to 40% among NASCAR fans.
It is, in almost every way, an example of what’s wrong with Detroit. The companies love marketing to themselves. With their market shares at the lowest level in years, they’re probably already down to their core customers bases. Rolling out pickups for the “good old boy”segment of the market doesn’t do them much good.
They should be trying to win over people who own a Prius.
Douglas A. McIntyre is an editor at 247wallst.com.
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