Dollars to Donuts

Despite the high cost, automakers are still drawn to racing.

- Greg Fink

THE ADAGE "Win on Sunday, sell on Monday" justified automakers' NASCAR efforts in the 1950s. But is boosting car sales still the reason manufacturers invest in motor racing? With sky-high budgets to compete in Formula 1, any additional sales attributable to a Sunday win likely aren't enough to cover the massive costs. Automakers unable to stomach the hundreds of millions of dollars in annual spending it takes to field a competitive F1 team have plenty of other racing series to compete in, but even sales linked to success in one of these still may not net enough of a profit to cover the expense of competition. However, factor in potential vehicle sales from brand exposure in racing with the earnings from sponsorship deals, potential prize money, andin some series-revenue-sharing models, and motorsports involvement can help an automaker stay in the black.