WKA FOREIGN CHASSIS BAN
MISSES THE MARK
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By
John Copeland
The recent announcement
that WKA will require the use of American-made chassis (or chassis
meeting "American specs) in several of its most popular series' is
certain to make waves throughout the sport for years to come. In
conversations with several individuals, both WKA insiders and others, it
appears that everybody has a good idea about why this action was taken.
Some profess that it's high time WKA looked out for its own. Others see
this move as a giant step backwards. Let's look at the arguments.
"European
manufacturers are selling karts at prohibitively high prices, running
karters out of the sport." Unquestionably the price of European
karts is higher than that of most American- made karts. Why is that?
Distributors of European karts attract prospective dealers by promising
profit margins almost double what the dealer can make on an American
kart. In fact, the dealer cost on the two is not all that much
different. Neither is the "list" price. The difference is that
American manufacturers, distributors, and dealers have ruined the market
by selling karts (and everything else) at "Racer Net",
whatever that is. They've created a market that values low price over
service, quality, and everything else. If dealers selling American karts
want to know why dealers selling European chassis are prospering, they
should start by comparing their marketing techniques. And karters aren't
leaving the sport just because they can't afford the higher priced
karts. There are a dozen reason why people quit karting, but the
foremost reason is because all the B___S___ makes it no fun anymore.
Unsportsmanlike behavior, self-serving officials, and manipulative
governing bodies are the real culprits here. Throwing up artificial
barriers to limit competition is just another verse of the same old
"self-interest" tune.
"American
karts just can't compete with the European chassis." Unquestionably
the Europeans have built a better mousetrap. I don't know of anybody who
would honestly dispute that the European karts have, in general, gotten
ahead of us technically. Why? It's mostly a matter of focus. While
American karting has supported a bewildering flood of classes for
virtually any engine you can come up with, while American karting has
saddled competitors with expensive, troublesome, and ever-changing
clutches and pipes, International karting has adopted rational rules
limiting classes and approved engines, requiring direct drive, and spec
pipes. As a result, European kart manufacturers have taken chassis development
very seriously and their drivers have become savvy chassis tuners. With
clutches and pipes out of the picture, chassis design and tuning become
the critical factor in gaining a competitive advantage. I don't believe
for a minute that American kart manufacturers aren't as smart, or
talented as their European counterparts. They just haven't had the
motivation or the need to dramatically push the envelope. We heard the
same cry go up when Japanese automobiles first came to the States.
"They're so economical!" "They're so advanced!"
"We can't compete!" "It isn't fair!" "Ban
them!" And what happened? Detroit found that they really could
compete. Driven by market forces, American car makers learned to build
more advanced, more economical cars that American buyers wanted. And
Japanese manufacturers who wanted to build a bigger market share learned
to do so by building many of their cars here. It's safe to assume that
foreign kart manufacturers will follow suit. They may set up plants to
build karts in the States, or they may get around the rules by importing
components and assembling them here. Either way, don't kid yourself that
this step from WKA will stem the tide of European karts. The real key to
making American karts more competitive is for American manufacturers to
rise to the challenge and produce karts equal to or superior to the best
the Europeans have to offer.
"The
influx of European karts will put lots of small kart builders out of
business." This may be true, but is it necessarily a bad thing?
Let's face it. There are only so many kart buyers each year. And those
buyers have to be divided up between all the various makes and models of
karts available. With every small-timer out there with a tube bender and
a MIG welder turning out frames, there aren't enough buyers to go
around. As a result, the historically major manufacturers, Margay,
Coyote, Invader, Emmick, etc., are facing smaller and smaller market
shares. Without sufficient sales to fund research and development work,
they're faced with an almost insurmountable disadvantage. Their
technology stagnates. And, since most of the small-time frame builders
only copy the designs of the major builders, with a few minor
changes, their technology stagnates too. The major European
manufacturers can afford to hire engineering staffs to design and
develop their karts because they sell more frames. And part of the
reason they sell more frames is because there are fewer of them to divide
up the market. When you cut the pie up into too many pieces,
everybody goes hungry.
"Closing
down the small chassis builders is un-American. Being able to start your
own business and build your own product is part of the American
dream." So it is. No argument there. But just because you allow
people to build and sell karts of their own design and construction
doesn't mean you don't have a right, or an obligation, to regulate them.
WKA and the other sanctioning bodies already specify certain technical
requirements for chassis design and construction, and those are
recognized as being in the best interest of the sport overall. I'm not
suggesting that those people not be allowed to design, build, race and
sell their own kart. But its a far cry from building a few karts to sell
to running in National competitions. There are plenty of local and
regional races that don't require any form of licensing for drivers, or
other restrictions. As long as karts meet basic design and safety
standards, there is no shortage of places for limited production karts
to run. But race series' that lead to National Championships might well
be best served by requiring competitors to run generally available,
approved chassis.
If
all this sounds like I'm in favor of the WKA ban on foreign chassis,
you're wrong. There are lots of proven ways to manage competition from
foreign manufacturers; ways that encourage development and promote
healthy competition. But throwing up artificial barriers like "no
foreign-made karts" is not one of them. Racing around the world has
been successful in managing growth, controlling design development, and
encouraging business by using well-reasoned homologation procedures.
Requiring manufacturers to prove that they have produced an adequate
number of frames, or engines, or whatever, and that those items meet the
required specifications, insures that competitors can have access to the
tools they need to pursue a
National or International title. Requiring that homologated frames have
"American" spec steering shafts, axles not to exceed 1
3/8" diameter, and so on will put all the manufacturers, foreign
and domestic, on the same page. Then its up to the American
manufacturers to rise to the challenge, to optimize their designs to
compete with their overseas counterparts. Likewise, the European
manufacturers will have to revise their designs to meet the American
specs. In the end, karting and karters are the winners.
Finally,
there are some who argue "Technology is ruining karting."
"We have to stop the technology from advancing!" Well my
friends, technology is the ultimate irresistible force. Progress marches
on as surely the sun rises in the East every morning. Like it or not,
karting will continue to get more technologically advanced. And while
I'll agree that $5000 data acquisition systems are not for everybody,
would you like to give up your current chassis for one of the
straight-rail, 1 inch stepped axle, straight front axle frames from 20
years ago? And you 2 cycle racers, do any of you long to trade in your
reliable Yamaha for the fragile, temperamental McCullochs of the past?
No, it appears that technology is only the enemy when it rains on your
own personal parade. Make no mistake, technlogy is relentless. But it
will only be the enemy if you fail to manage it.
Karting's
strength has always been its affordable nature. And I believe that many
of those who support WKA's ban on foreign chassis see it from only that
perspective. But we can, and should, take aggressive measures to control
costs, to solicit new participants, and to retain the karters we have
now. I'm sure this step by WKA is well-intentioned, but it is
ill-considered. The time-honored way to improve market competition is to
encourage new companies to enter the market. You have to mandate that
they meet required specifications. Then you let them battle it out for
the buyer's attention. Invariably quality improves, pricing stays
competitive, and the buyer is the winner.
Finally
a word about the future. If we keep ignoring the real problems of this
sport, we don't have a future. According to some sources, the average
life-span of a karter is only 3 years. Everybody with a stake in karting
needs to look at that statistic and ask how they figure into the
equation. Clubs, sanctioning bodies, shops, manufacturers, importers,
and individual racers need to examine their roles. If you're not part of
the solution, you're part of the problem. What are you doing to bring
new people into karting and how can you do it better? What are you doing
that may be leading to existing karters quitting and how do you stop it?
Retailers, manufacturers, clubs and tracks are all so worried about
their share of the market, that they're forgotten how critical
the size of the market is. Motorsports worldwide is enjoying
unprecedented growth. Karting in particular, is growing around the
world, yet many American manufacturers and distributors report soft
sales in 1996. Blaming it on foreign competition, or on new technology,
or on the rising cost of racing is just a way to avoid facing the real
cause. It's time to wake up and smell the coffee. If you want to see the
one thing that can save the sport we love, and the industry that
supports it, look in the mirror.
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