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Race for the Showroom

Race for the Showroom

by Herb Fishel

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Motor racing needs to drive technological innovation and link in with road cars if it is to remain worthy of public attention and carmakers’ increasingly stretched budgets. Herb Fishel, former competitions director of GM, gives his view of how a new sports car racing business model could bring back relevance to the racetrack.

This is an edited version of an article first published in Ricardo Quarterly Review and is used with permission.

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The yellow caution flag is flying on the old cliché ‘Race on Sunday, Sell on Monday’ as automobile manufacturers are beginning to more closely scrutinize dollars spent. GM now has cost-cutter Jerry York on the board; Carlos Ghosn cut his way to profitability at Nissan; and Volkswagen, Ford and others are operating with little or no return on their investments.

Increasingly, the significant sums some automakers spend on motor sport are being seen at best as questionable investments, at worst as irrelevant to their everyday sales activities.

We are entering a new era, and if motor racing is to remain in automakers’ investment plans, it will have to change to remain relevant. In particular, it will have to be seen to be contributing something more permanent and technologically useful than just a few champagne-spraying moments of glory on the winner’s rostrum.

Audi just spent a small fortune to run the 12 hours of Sebring endurance race with a sports car powered by a V12, twin-turbo diesel engine; a brilliant idea with high return on its technology and marketing investment. But there is a reason why other manufacturers haven’t been quick to jump on the bandwagon: what racing series has rules that allow for hybrid experimentation?

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Formula One, for all its huge worldwide audience, has been one of the worst culprits. It has systematically outlawed many areas of engineering innovation (anti-lock braking is one) on the grounds of cost, and only very recently has it accepted the possibility of a limited degree of hybrid energy recovery, for instance.

Change – or be left stranded

A new sports car racing business model needs to be created that will spark investment from the manufacturers.

Let me begin with the new business model. First, it must embrace research, drive product innovation and create a value proposition for the automobile manufacturer that is not available in professional racing today. This type of racing offers the manufacturers the greatest opportunity to compete with production-based products through a variety of engines, vehicles and configurations, competing on road courses.

Sustaining profitability and growth depends greatly on the availability of exciting products with leading-edge design and technology. And that’s the key area where racers and researchers have an opportunity to get the green flag waving again for opportunity. The frequency, pace and variety of new road car introductions prevents a manufacturer from extended periods of domination on the track. Short product life cycles, speed to market, mass customization, alternative fuels and hybrid technologies are realities of the business.

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The timing is perfect for racing to be a true high speed test laboratory to bring great ideas and inventions to market quickly. Research can no longer be conducted in a time capsule. Research is now! Design tools, manufacturing techniques, mathematical modelling and simulation software are available to bring great ideas and inventions to market quickly.

A new sports car racing business model can bridge the gap between the race track and the showroom. It can capture the passion of racing, provide a career path for aspiring engineers and create greater opportunities for motorsports suppliers to grow their business relationship with the automotive industry.

Technical specifications and sporting regulations can be drafted around current and future products that provide benefits in product design, manufacturing processes, development and validation. The creative process must recognize and consider the technical sophistication and ingenuity of today’s production vehicles.

Head-to-Head Competition

The test case could be built around sport, compact, performance, small or luxury cars. The market segment chosen will need to be of interest to a minimum of five Original Equipment Manufacturers. Head-to-head competition is essential to validate the merits of winning that translate into the customer purchase of the production vehicle.

Once a baseline has been established for the concept, more progressive classifications can be drafted that incorporate the usage of alternative fuels, new energy sources and hybrid technologies. For the manufacturer, the series becomes a true high speed test laboratory. The race moves from race track to showroom, from current to future products.

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The performance demands for production-based race cars competing on road courses take to an extreme the braking, handling, and acceleration experienced by highway drivers. The rapid introduction of new broadcasting technology has the potential to communicate this experience to potential customers and drive traffic to the showroom.

A new sports car racing series will also offer a more promising career path for young college engineering graduates who aspire to jobs in racing that utilize the science, engineering principles and disciplines they have learned as students. They are aware of sustainable development; they know the impact of the automobile on air quality and energy consumption.

Outlook

For a sports car racing series to become truly relevant, standards and protocols will have to be created around the real-world issues of energy resources and air quality. Technical specifications and sporting regulations can then be created that attract and encourage all automobile manufacturers to compete - to get in the race.

Previous game-changers in racing such as aerodynamics, electronics, TV and tobacco sponsorship led to big shifts in attitudes and approaches. Now, race cars that meet and exceed fuel efficiency and air quality regulations, which have provisions for alternative fuels, new energy sources and hybrid technologies have the power to create change in motorsports that is both seismic, refreshing, and profitable.


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