Sauter began racing in 1964 at Raceway Park in Savage, Minnesota, competing in modifieds. He moved to late models the following year and eventually relocated to Wisconsin. He recorded an early regional milestone when he won the inaugural race at the LaCrosse Interstate Fairgrounds — later known as LaCrosse Fairgrounds Speedway — on July 14, 1970.
His career gained national attention when he won the North Star 500 at the Minnesota State Fair driving a Dave Marcis Chevelle. The victory came with an unconventional tire setup: Sauter mixed Goodyear tires on the outside and Firestone tires on the inside, a circumstance he described as entirely practical rather than strategic. The result nonetheless caught Marcis's attention, and he called Sauter in 1978 to drive his car in the ARCA 200. In the closing stages of that race, Sauter battled Bruce Hill for the victory; the two made contact on the final lap, Hill hit the wall, and Sauter took the win.
Sauter's primary arena through much of his career was the ARTGO Challenge Series and the ASA Series, both Midwestern regional stock car circuits. He won the 1981 track championship at Wisconsin International Raceway and captured the ARTGO series title in both 1981 and 1982, with a combined sixteen victories across those two championship years — seven in 1981 and nine in 1982.
Beyond the ARTGO title runs, Sauter won several significant regional events. He claimed the 1980 National Short Track Championship at Rockford Speedway and the 1983 All American 400 at Nashville Fairgrounds Speedway. He also competed in prestigious short-track events such as the Slinger Nationals, the Snowball Derby, the Winchester 400, and the World Crown.
Sauter raced part-time in the NASCAR Winston Cup Series during the 1980s and 1990s, making 76 starts and posting four top-ten finishes. He cited leading the 1982 Daytona 500 as one of the highlights of his racing life, an experience that underscored the level of ability he brought to the sport despite operating as an independent driver without factory backing or substantial sponsorship. To supplement his racing income, Sauter conducted tire testing for Goodyear alongside Dave Marcis.
He also made appearances in the NASCAR Busch Series and NASCAR Craftsman Truck Series, and competed in the ARCA Hooters SuperCar Series. His final NASCAR start came in the Nationwide Series at the Milwaukee Mile in 2002, in a race notable for being the only occasion in NASCAR history where a father competed against three of his sons simultaneously — Tim, Jay, and Johnny Sauter all ran in the same event.
Sauter was well regarded within the racing industry for his car preparation and chassis knowledge. He served as a test driver for the International Race of Champions (IROC), preparing setups and conducting testing alongside Dick Trickle and Dave Marcis. The IROC program used identical cars across manufacturers, placing a premium on the kind of technical feedback and setup expertise Sauter provided.
Sauter's influence extended beyond his own driving career through his children. Sons Tim, Jay, and Johnny all pursued racing careers at the NASCAR level. Son Jim Jr. raced at the regional level, and grandson Travis Sauter also continued in the sport. None of his seven daughters nor his son Joe were involved in racing.
The Sauter name also intersected with another prominent Wisconsin racing figure: Joe Shear, a longtime rival of Jim Sauter, whose son — also named Joe Shear — became crew chief for Johnny Sauter in the NASCAR Gander Outdoors Truck Series, contributing to championship success.
Jim Sauter died on October 31, 2014, following a brief illness. He was 71 years old.
Sauter's career represents the broader tradition of Midwestern short-track racing that produced many of NASCAR's journeyman competitors from the 1970s through the 1990s — drivers who competed at the top level on limited budgets while achieving genuine success in regional series. His two ARTGO championships, IROC testing role, and the racing family he built stand as his most enduring contributions to the sport.