Bankrupt GM ends cash support of Chevy Nationwide, Truck teams
When General Motors entered bankruptcy June 1, the Chevrolet-supported teams in NASCAR wondered what impact that would have as far as the manufacturer’s future in the sport. Eight days later, they found out.
Nationwide and Truck series teams were told June 9 that they would not be getting cash support from General Motors beginning next year. The teams expect some help in engineering and wind-tunnel time, but must find sponsors to make up the financial difference.
Exactly what changes will come to Sprint Cup teams remains to be seen as Chevrolet goes through its Chapter 11 reorganization, with the government owning the majority of the company, at least temporarily.
“Chevrolet’s (and GM’s) involvement in racing is a sound business decision that translates directly into the sale of cars and trucks,” General Motors said in a statement.
“It is essential, however, that we continue to look at every penny we spend as General Motors takes the necessary steps to become a leaner company.”
NASCAR Chairman Brian France said June 14 that he believes NASCAR can weather the cuts.
“Obviously everything they’re doing, every program is being affected, and we’re no different,” France said. “We were hoping to have the most minimal of the impact with the decision to restructure their business, and the details aren’t all out yet, but obviously, we are affected.
“I’m very confident they’ll be in the sport for many, many years because it works well – but obviously under different terms.”
Those terms include no cash or engines for Nationwide and truck teams.
“We’ll try to do the best we can to cover the void that will create,” said Dale Earnhardt Jr., who co-owns JR Motorsports, which fields two Nationwide Series cars. “… I’ve been a loyal supporter of Chevrolet for a very long time and will continue to be. They’ve been a great partner.”
One of the organizations expected to be most impacted by the decision is Kevin Harvick Inc., which fields two truck teams and one Nationwide team.
“Kevin Harvick Inc. has lost its manufacturer support,” Harvick said in a statement. “Although this will require some internal restructuring, our commitment to our sponsors to provide the best possible product on the race track will not change.”
One of the most critical elements in a manufacturer deal is engine support. Brendan Gaughan, a former Truck series team owner and current Chevrolet driver at Rusty
Wallace Racing, estimated that truck teams spend about $750,000 a year (or $30,000 a race) on engines. Nationwide teams run longer races, so those engine programs could cost as much as $1.4 million.
Until General Motors emerges from bankruptcy protection, questions will remain.
“Chevrolet having to pull support is a big deal because so many people rely on [them] and they have been such a big part of the series,” Chevrolet Cup driver Jeff Burton said. “… In my talks with Chevrolet, they want to do everything they can to stay involved and be a part of the NASCAR deal. And I think they are, but they have some tough decisions to make.”
