Shell signed a multi-year deal to sponsor
Penske Racing in the NASCAR Sprint Cup,
Nationwide Series, and IndyCar Series. As a
result, Shell will be Penske's official fuel
and motor oil supplier starting in 2011.
In JobbersWorld's view, this deal has the
potential to shake things up between Shell,
Mobil, and Chevron in the lubricants
business. To start, although Mobil 1 will
continue as the official NASCAR oil, it will
not be on Penske cars. Instead, starting in
2011, it will be Shell and Pennzoil logos
enjoying the high visibility of Penske
cars. This will be a win-win for both
Penske and Shell. Penske wins because it gets
millions for racing venues. Shell wins
because it gets tremendous
But in addition to the advertising exposure,
Shell is also in a position to potentially
benefit from Penske's other
Specifically these relationships speak to
Penske owned dealerships (Penske Automotive
Group) selling Honda,
Porsche, Mercedes, and others where ExxonMobil
has a strong position as an approved supplier
of genuine oil, and bulk. Some wonder if Mobil's
position at these dealerships may weaken as
Shell's relationship with Penske strengthens.
If it does, Shell could likely be the
beneficiary of a significant increase in
lubricant sales volume.
Similarly, some also wonder if Chevron will
retain its business with Penske Truck Leasing
when its contract to supply Penske with
With that said, it's no wonder Shell refers
to the deal as being a "multi-year cross
business alliance." In addition, it's easy to
understand why many are saying the rewards are
potentially high for both Penske and Shell
and the deal is "anything but a one way street."
For NASCAR's take on the story, see link below.