Audi Goes No Where Fast

Vroom goes the oil burner
For the past few years, no manufacturer has dominated an automobile racing series as Audi has done with the American Le Mans Series, or ALMS. More surprisingly, Audi accomplished this dominance through a race car powered by a V12 diesel engine. Yes, Audi’s power lies behind a fuel most Americans’ consider smelly and believe produces underpowered cars (see the Oldsmobile Delta 88).

Lost in the twaddle emanating from Consumer Reports’ branding survey came disheartening news for Audi’s attempts at creating a TT stable mate that burns diesel. No one in the sample considers Audi as superior in the Technology category. Specifically, blame Audi’s promotions efforts on American’s complete ignorance of Audi’s technological achievement compared toToyota Honda other automobile companies.

Generally, the Consumer Report survey calls into question whether automobile manufacturers generate value by sponsoring cars in racing series like ALMS, NASCAR, and the sundry open wheel racing circuits.

Automobile manufacturers sink millions into designing, testing, and building racing sleds. Ferrari spends upwards of $100 million in an attempt to dominate Formula 1 racing. Costs on that circuit have become so worrisome, that Formula 1 has implemented a freeze on engine developments. The European-based circuit has kicked around the idea of a spending cap similar to the National Football League’s.

Ferrari’s sponsorship effort does re-enforce Ferrari’s corporate identity as a builder of exotic, fast cars that offer superior handling with a splash of design. A Ferrari appears fast even when standing still. The effectiveness of Ferrari’s sponsorship cannot be called into question; although, the efficiency may appear questionable.

Toyota joined the ranks of Dodge, Chevrolet, and Ford as a supplier of racing sleds for NASCAR. The Japanese company found the going a little tough in its first year. Expect Toyota to fare better this year as it gains knowledge of how to design the proper car for NASCAR. Exactly how many additional Camrys did Toyota sell because of its NASCAR sponsorship?

Sales do not represent a good dependent measure when evaluating sponsorships. How many people especially among those who strongly identify themselves as NASCAR supporters changed their opinion about Toyota Camry? A change in consumers’ image does represent a good dependent measure when evaluating sponsorship.

A better styled Camry may reflect better money spent than throwing Toyota’s money down NASCAR’s sponsorship hole.

And, then, we have Audi. At last week’s North American International Auto Show in Detroit, Audi bowed its R8 concept car. The proposed vehicle claims a direct lineage to Audi’s ALMS sled as the concept car includes a modified version of the fast diesel engine.

If the past presents any guide to the future, most Americans will great the R8 with a yawn then ask to see a TT roadster. In the late 1980s and early 1990s, Toyota and then Honda dominated the CART open wheel series. The domination was not as a great as Audi’s in ALMS but it reflects comparable issues that Audi faces.

Toyota and Honda built superior racing sleds that featured many advanced technological features. Some of the features were transferred to passenger cars. Most research at the time showed Americans did not believe Toyotas and Hondas were anymore technological advanced or superior to Fords, Mercedes Benzs, etc. given Toyota’s and Honda’s dominance in CART.

Toyota and Honda committed a great deal of resources toward the sponsorship effort and had little to show for their expenditures. Consumers’ image of the two car companies did not change and sales were unaffected.

At Blipverts, as fans, we hope Audi and all the manufacturers remained committed to ALMS because we enjoy the racing featured in this series. As realists, we understand that this sponsorship may not represent an efficient allocation of company resources.