Sell on Sunday, Sell on Monday

The Detroit Three have had a long-standing history of involvement in motorsports. However the old adage of “Win on Sunday, Sell on Monday” is changing to adapt to recent economic conditions. Historically Ford and the others have had the luxury of chalking up most of their expenses related to motorsports support as marketing. More recently, as budgets have dwindled, the companies have realized participating in racing may be a small profit center. New York Times’ Jeff Garrett reports that manufacturers such as Ford have begun to put pricetags on factory-configured race cars that in the past would have been given to a driver or team under a sponsorship agreement. Ford, for instance, in 2008 produced 50 Cobra Jet Mustangs in “Drag Pack” form. The vehicles were stripped down versions of the production vehicles, however designated at ‘for off-road use only.’ At a price-tag of $69,000 they generated a decent margin, and sold out quickly. Furthermore, they also accomplished the marketing objectives as the vehicles are definitely ogled over by Mustang fans.

While this specific change in cost management may not be the saving grace for Detroit’s Big Three, any ‘fat cutting’ is certainly a move in the right direction.

Read the entire New York Times editorial here.