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Examples of series that recovered from a slump -
Castle Combe GT's
Ford Mod Prods
It certainly can be done but takes a massive amount of effort to rejuvenate/relaunch. I think most people involved generally don't have the time or money to do it. In both those instances there was the desire and resources to ride through the 'rough patch', adapt the series to what people wanted and build it back up again.
Part of the problem is you have two often totally confilicting priorities. You want rule stability to keep people happy but you also need to adapt to changing trends and competition.
Mod Prods was a very good example. It got increasingly modified (and potentially more expensive) which meant fewer people could do it. However the people that were left were split between wanting to keep things as is and wanting to change things further. The end result was whatever you did, half the people were going to be dissappointed.
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