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Racing to Win
GM is the world’s largest vehicle manufacturer and one of the most successful competitors in the worldwide arena of motorsports. GM is in racing to win on the track – and to win in the marketplace. Racing is a compelling demonstration of the depth of GM’s technical resources, the capabilities of its people and the performance, reliability, quality and safety of its products. GM vehicles and engines have won races and championships in disciplines that span the spectrum of motorsports – from stock cars and off-road trucks to touring cars and open-wheel racers. The race track is a crucible that forges engineering, marketing and business skills to produce tangible results. It is a platform where brands compete for the loyalty of customers. Few environments can match racing’s ability to build awareness and consideration of a manufacturer’s products. It makes business sense for GM to engage its vast resources in motorsports competition. Racing has been a part of the GM culture ever since auto pioneers such as Louis Chevrolet and Ransom E. Olds relied on speed records and racing victories to launch their fledgling car companies. In today’s world, auto racing is a global sport that attracts millions of spectators and billions of television viewers. It has become a huge international sports marketing enterprise supported by sponsorships from many of the world’s most respected companies. “There are five key reasons why GM participates in racing,” said Mark Kent, GM Racing director. “Each addresses a specific aspect of motorsports, and together they constitute the five pillars that support GM’s total business approach to racing.
“The first reason is that racing provides a dynamic training ground for GM engineers,” said Kent. “There is no better place for them to exercise their minds and expand their abilities than in this demanding arena. The lessons of racing are clear: You must have commitment and focus. You must be ready on time, and solve problems quickly and effectively. Teamwork and communication are paramount, and there is no time for excuses. You must control your own destiny and make tough decisions. Most important, the winner takes all in racing. “The second reason for our passion for racing is technology transfer,” Kent continued. “Technology transfer is a two-way street. Racing has introduced improvements in suspensions, brakes, engines, aerodynamics and safety, but there also are instances where production car technology has improved race cars. The production Corvette’s hydroformed frame rails, for example, provide outstanding stiffness and crashworthiness for the Corvette C6.R race car. The rigid, enclosed crankcase of the production Ecotec engine provides a strong foundation for building a 1,000-horsepower drag racing engine.
“People also represent a form of technology transfer. The knowledge and experience that a GM engineer gains in racing can be applied to mainstream production vehicles – and the advanced technology that is used to design and manufacture new GM cars and trucks can accelerate the development of racing vehicles. “The third reason why GM races deals with fundamental human nature – people want to compete, and people want to be winners. There is a strong competitive spirit within GM, and success in racing produces a vibrant esprit de corps. GM is not a sponsor of racing – we are an active, engaged participant who produces the cars and components, and provides the technology that is essential to the sport.
“The compelling marketing benefits of racing provide the fourth reason,” Kent noted. “If racing did not exist, auto manufacturers would invent it as the perfect marketing platform. It is a sport that is all about the product, with passionate fans who buy cars and trucks at a higher rate than average consumers. Racing fans have a higher consideration for sponsors’ products, and they are considered experts by friends and family members making purchase decisions. Motorsports generates revenue for GM through licensing and drives sales at GM dealerships that use racing to promote their business. “Finally, racing provides GM with an opportunity to sell heavy-duty and high-performance parts. GM engines and vehicles are the overwhelming choice of grassroots racers and enthusiasts, and this has made GM Performance Parts the leader in over-the-counter components and engine assemblies. “GM’s approach to motorsports can best be summarized with an analogy from the computer industry, that of ‘open’ or ‘closed’ architectures,” Kent observed. “A closed architecture is inflexible, expensive and hard to fix. An open architecture is flexible, expandable and serviceable. GM has taken the approach that as a participant in racing, we have a responsibility to support the sport, and that means following an open-architecture philosophy. This ‘democratization’ of racing is what sets GM apart, and is the cornerstone of GM’s total business approach.
“An example of this is the Ecotec Engine Handbook, which contains detailed information on preparing and assembling Ecotec engines for competition in sport compact drag racing, and the new Cobalt Phase 5 sport compact drag racer. Like a cookbook for racing, performance enthusiasts can modify their Ecotec engines and Cobalt vehicles by following GM Racing’s proven recipe. We see great potential for the GT class in the Grand American Series. GM Racing will be an active participant in the growth of the GT class in the Grand American Rolex Sports Car Series with the new Pontiac GTO.R, a highly developed yet affordable race car. Another example is GM’s motorsports safety program that benefits all drivers and racing teams, regardless of their manufacturer affiliation.” While GM competes globally in motorsports, its racing programs are targeted at national and regional series and tailored to local requirements. For example, the NASCAR Nextel Cup Series, Australian V8 Supercars, British Touring Car Championship and the German DTM series showcase production-based stock cars, yet the GM vehicles and powertrains that compete in these series are radically different. “GM Racing’s mission is to win races and championships,” Kent explained. “Racing demonstrates how GM is able to leverage its global resources to adapt its products and people to the unique requirements of different racing series. It is important for both marketing and engineering reasons to have strong links between the products that we race and the products that we sell to our customers.” Motorsports offers a dynamic showcase for GM vehicles and powertrains, spotlighting GM’s advanced technology in design, development and manufacturing. The values that foster success on the track also contribute to success in GM’s core business: teamwork, commitment, flexibility, innovative technology and quick decision-making. “For its own long-term success, racing has to maintain a delicate balance between entertainment and technology,” Kent concluded. “As long as those two aspects remain relevant to manufacturers, the manufacturers will continue to participate in racing. And when you combine those two qualities, you win on the track and off the track as well.” Why GM Races
General Motors Corp. (NYSE: GM), the world’s largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM today employs about 324,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. In 2004, GM sold nearly 9 million cars and trucks globally, up 4 percent and the second-highest total in the company’s history. GM’s global headquarters are at the GM Renaissance Center in Detroit. More information on GM can be found at www.gm.com. ******* The GM Group of global partners includes Fiat Auto SpA of Italy, Fuji Heavy Industries Ltd., Isuzu Motors Ltd. and Suzuki Motor Corp. of Japan, which are involved in various product, powertrain and purchasing collaborations. In addition, GM is the largest shareholder in GM Daewoo Auto & Technology Co. of South Korea. GM also has technology collaborations with BMW AG of Germany and Toyota Motor Corp. of Japan, and vehicle manufacturing ventures with several automakers around the GM’s automotive brands are Buick, Cadillac, Chevrolet, GMC, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. In some countries, the GM Group distribution network also markets vehicles manufactured by GM Daewoo, Isuzu, Fuji (Subaru) and Suzuki. GM parts and accessories are sold under the GM, GM Goodwrench and ACDelco brands through GM Service and Parts Operations. GM engines and transmissions are marketed through GM Powertrain. GM operates one of the world’s leading financial services companies, GMAC Financial Services, which offers automotive and commercial financing along with an array of mortgage and insurance products. GM’s OnStar is the industry leader in vehicle safety, security and information services. In 2004, for the fourth consecutive year, GM set industry sales records in the United States, its largest market, for total trucks, pickup trucks and sport utility vehicles. In China, GM’s second-largest market in 2004, GM’s sales increased 27 percent and set a company record.
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