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A Factory Team is a racing team funded and sometimes managed by the company that makes the vehicle in question, whether it is an automobile, boat, motorcycle, or even a scale model such as a radio control car. The team is supplied with hardware and money with which to purchase parts, or the performance parts themselves, as most automakers (and similar) have their own line of performance parts. Factory teams have direct access to corporate engineers and designs, which gives them a leg up on the competition in ways other than the obvious monetary concerns.

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