Champ Car Rant

 In General

Originally published 6/10/04 (re-edited)

A Champ Car Blog

by Ed Donath

Cairo, NY -- The legendary name of General Tso has become nearly as synonymous with tasty chicken as that of Colonel Sanders.  However, another legendary military character -- General Motors -- is working on beefing up his auto product recipes.

Recently, GM made a surprising announcement regarding future marketing of 2005-and-beyond Cadillac models in, of all places, China.  With China’s emergence as the world’s third largest auto market (behind the USA and Japan) in which, by the year 2020, some 20 million vehicles will be sold annually, China’s huge bicycle-riding population appears to be heading rapidly toward a highly motorized culture similar to our own.

That our Detroit-based General anticipates success with three upscale Cadillac models (the CTS high-performance luxury sedan, the SRX luxury crossover and the Corvette-based XLR roadster) in addition to the Chevy and Buick-based models it is already marketing in China also validates reports of that nation's changeover to a consumer economy.

But before we make the quantum-leap assumption that yuppie Chinese car guys with discretionary spending money burning holes in their pockets are ripe enough to pick for a Champ Car street race around the new Caddy factory in Shanghai, we must first allow the Chinese car culture to mature a bit.

Asian racecar drivers, sponsors, and engine/chassis technologists are still at the point where they require careful nurturing. Meanwhile, however, as we witness the ongoing increase of multi-national auto companies’ involvement with the Chinese people, the Champ Car Company and its teams must be prepared to quickly seize any of the economic opportunities that may present themselves in China. 

In our ever-widening world economy, companies like Cadillac -- especially if GM continues emphasizing performance oriented products in China and other emerging markets -- should consider a financially sound Champ Car World Series to be an excellent marketing partner. But they may not if Champ Car fails to place the highest priority on acquiring a multiplicity of automakers’ engines ASAP.

Doesn't OWRS’ stated business plan revolve around cooperative efforts with national and municipal governments around the globe? This is a  realistic goal that should be pursued before it’s too late. 

With hoped-for future events on every inhabited continent, Champ Car’s ability to feature dominant automotive brands from various global regions would not only add an important element to stimulate fan interest, it would also help to create many of the super important cross-marketing opportunities that every international sport requires.

This related story reports that General Motors' aggressive policy will pit it against Europe's leading producer, Volkswagen, in the Chinese market.  VW currently enjoys a 33% market share and sells more cars in China than in its home market, Germany. Ford also recently announced a new $1 billion investment, DaimlerChrysler signed a $1.23 billion deal, and Toyota, Nissan, Honda, and Hyundai have announced $10 billion in new China investments.

It is foolish and parochial to ignore the fact that similar carmaker battles will be fought by the General and others in South America, Europe, Mexico, Australia, and Asia where the Champ Car World Series ultimately hopes to achieve success. Additionally, automotive sub-industry marketers that would ride the coattails of engine manufacturers could help fill the sponsorship void that resulted from international tobacco product advertising bans.

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