Due to the global economy slowdown, and the strain placed on automakers from falling auto sales, many automakers are pulling out of costly motorsports. The latest withdrawals from motorsports are Subaru and Suzuki, which have both announced that they will not compete in the World Rally Championship.
With the exit of Subaru and Suzuki, the WRC leaves only Citroen and Ford as the only manufactures competition in next year’s championship says Subaru Service Seaside. Considering Ford’s struggles, they may be next to leave the sport.
With the rapid deterioration of the global economy, Buffalo Suzuki dealers say that automakers are finding it difficult to remain in costly racing competitions. In order to strengthen their brand, Suzuki and Subaru have both chosen to tighten their budgets and focus only on what’s truly necessary to their overall success. According to the Salinas Collision Center, reduced profitability from dwindling car demand worldwide has made it necessary to reduce spending wherever possible, including in motorsports.
Honda has already bowed out of Formula One racing for similar reasons as the automaker needed to apply the cash towards more crucial business initiatives according to East Hartford CT Honda. F1 teams such as Honda can spend as much as $500 million per year, but rally racing is significantly less costly.
Subaru and Suzuki were both competitive in rally racing. Subaru in particularly has been one of the sport’s icons, and is a part of their brand image.
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