THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Tuesday, November 15, 1994 TAG: 9411150444
SECTION: SPORTS PAGE: C1 EDITION: FINAL
SOURCE: BY BOB ZELLER, STAFF WRITER
DATELINE: GREENSBORO LENGTH: Medium: 84 lines
Throughout the 1994 Winston Cup season, fans and competitors alike wondered how the Hoosier Racing Tire company could afford to compete, considering that it had to bring hundreds of tires to each race that remained unsold.
With Hoosier's announcement Monday that it was withdrawing from both the Winston Cup and Busch Grand National series because of financial considerations, it became obvious that the small Indiana manufacturer in fact could not afford to race in NASCAR's big leagues.
``Our effort in NASCAR Winston Cup and NASCAR Busch series racing has been rewarding for us, but we remain a family-owned company that relies totally on income from the sale of racing tires to remain profitable,'' Hoosier president Robert Newton said in a statement released Monday afternoon. ``At this time, we believe it is in our best interest to concentrate our efforts in short-track racing, which remains our bread and butter.''
Newton said the withdrawal was immediate.
``We're just sorry to see it happen, but I guess Bob Newton had to make a business decision,'' said Cal Lawson, manager of the team owned by Geoff Bodine, who won three points races and The Winston all-star race this year, all on Hoosier tires. ``We'll move on. We'll be OK.''
Although the Hoosier tires were plenty competitive against Goodyear in 1994 - taking 12 Winston Cup pole positions along with Bodine's victories - the financial burden was overwhelming.
NASCAR rules forced both Hoosier and Goodyear to come to each track with enough tires to supply all teams in case the other company's tires proved unsafe. Thus, though Hoosier only had a few teams using its tires, it still had to show up with as many as 1,200 tires, depending on the track.
Because each tire sold for about $250, the supply for each race had a retail value of $150,000 to $300,000.
Moreover, to remain competitive, both companies developed different tires for many of the races and did extensive, costly testing. And few, if any, of the Hoosier tires were actually sold, since most, if not all, of the teams using Hoosiers got them for free.
Hoosier had hoped to continue in NASCAR's big leagues in 1995, but it failed in its efforts to negotiate a sponsorship contract with the parent company of General Tire, with which it had a licensing agreement to make and sell a street radial with the Hoosier imprint.
In his statement, Newton said that NASCAR had been ``more than fair'' with his company, and that he was thrilled with Hoosier's success this year. Hoosier also had three victories and five poles in the Grand National series.
``All of this was accomplished when cars running our tires were usually heavily outnumbered,'' Newton said. ``We feel that there were several races in which cars running our tires were superior, but all experienced problems which prevented them from winning. There just weren't enough cars running our tires in those situations.''
Besides Bodine, regular Hoosier drivers included Jeff Burton (who was officially named rookie of the year Monday), Ward Burton, Greg Sacks and Loy Allen Jr. Darrell Waltrip used them for the first seven races, and other drivers, including Harry Gant, Rick Mast and Joe Nemechek, used them off and on.
Mast won the Brickyard 400 pole on Hoosiers, but he's glad to see the company bow out.
``It tickles the dickens out of me,'' he said Monday evening. ``It's the best thing that could have happened. It put everybody in a bad spot. When tire companies are in competition, to go faster, your tire's gotta be softer, and softer tires are just not as safe. They're more apt to come apart.''
NASCAR president Bill France, in a statement, called Hoosier ``a first-class organization'' and wished it well.
``In all of the meetings and conversations we have had with Hoosier over the last two years, the overwhelming factor from them has been their desire to produce a good product and do what is in the best interest of the sport,'' France said.
With Newton's departure, Bodine and the other Hoosier drivers will go back to Goodyear tires for 1995.
Leo Mehl, general manager of racing for Goodyear, said his company is relieved that the tire war has ended because speeds had escalated to the point where the drivers, teams and sanctioning body were ``very concerned.'' ILLUSTRATION: Photo
Rick Mast said, ``when tire companies are in competition to go
faster, your tire's gotta be softer . . . they're more apt to come
apart.''
by CNB