GO! asks Why car manufacturers invest millions in motorsport

Dilara Prosupo

1.10.2024

Why does a manufacturer engage in motor racing? Is it worth spending millions just to be faster than the competition? GO! asked at the 24-hour race in Le Mans.

The 24 Hours of Le Mans is probably the most famous endurance race in the world. For over 100 years, manufacturers have been battling for the prestigious victory on the high-speed circuit in France.

The 24 Hours of Le Mans has been held annually in France since 1923.
The 24 Hours of Le Mans has been held annually in France since 1923.
Le Mans

But why is it actually held? Why do car manufacturers spend millions on a race that at first glance has little to do with their production cars?

Jean-Marc Finot is the motorsport manager at the Stellantis Group, which competes with Peugeot in the highest category. He explains: "Of course it is a passion for us at Peugeot Motorsport. Nevertheless, it is first and foremost about business. Motorsport is a marketing tool to make the brand better known."

Marketing or technical laboratory?

Finot is not the only one who sees motorsport as an important component of the brand strategy; motorsport experts also share this opinion.

The Swiss Max Welti, who has won Le Mans in various roles, emphasizes: "The reason why you do motor racing is a marketing reason, an entertainment reason and ultimately also a technical reason."

The racing cars should not only be fast, but also contribute to the development of production cars.

Racing cars can contribute to the development of production cars.
Racing cars can contribute to the development of production cars.
GO!

Finot describes racing as a "technology laboratory". This is where high-performance batteries are developed that could later be used in production vehicles.

"It's a technology laboratory. We have a high-performance battery here that charges and recuperates very quickly. This will improve fast charging in the road cars of the future."

But how realistic is this technology transfer? Le Mans driver Nico Müller says: "Of course, everything here is designed for performance. That has absolute priority. And sometimes you go beyond the limit. On the road, of course, the whole thing is then designed for durability."

Extreme stress test for technology

Despite the differences between racing and production vehicles, Welti sees clear advantages in motorsport.

"There, these hybrid components are stressed in a way that is not commonplace," he says. Le Mans is an extreme endurance test in which the cars drive at full throttle for two thirds of the time and reach speeds of up to 350 km/h.

On the race track, the cars are subjected to an extreme endurance test.
On the race track, the cars are subjected to an extreme endurance test.
Le Mans

If something holds up, this is a valuable gain in knowledge for series production.

Motorsport as a marketing platform

In addition to technical development, the marketing aspect also plays a central role. Finot explains: "We opted for the endurance championship because the visibility and the counter value are right here."

The 24 Hours of Le Mans in particular offers a global platform to present the brand.

Racing offers brands like Peugeot a worldwide platform to present their brand.
Racing offers brands like Peugeot a worldwide platform to present their brand.
GO!

Even for a brand like Peugeot, which sells mid-range vehicles rather than sports cars, racing is an important part of the marketing strategy.

Welti is convinced that even less expensive brands can benefit from motorsport: "There is no other marketing platform for a car manufacturer that is closer to its core business than motorsport."

Le Mans as a foundation for production cars

Ultimately, the question remains to what extent motorsport actually has an impact on series production.

What is certain is that motorsport represents a kind of basic research for the automotive industry, which flows into the development of production cars in the long term.

For brands such as Peugeot, participation in the 24 Hours of Le Mans is worthwhile.
For brands such as Peugeot, participation in the 24 Hours of Le Mans is worthwhile.
Le Mans

The glamor of the big stage at Le Mans is transferred to the brand. The customer should choose precisely those vehicles that have proven themselves on the race track.