Bankrupt GM ends cash support of Chevy Nationwide, Truck teams

By Bob Pockrass - Associate Editor
Thursday, June 18, 2009

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.”

Post a Comment

Disclaimer: All comments are subject to filtering for language, and libelous content. Comments are intended to encourage spirited debate and discussion about the subject matter contained within the articles and ARE NOT intended for personal or demeaning attacks directed at other users. We reserve the right to remove any comments deemed inappropriate. Users who violate this policy may be banned from posting comments on the site.

Comment Preview

Nov 21, 2009 at 3:18 AM
You said:

You must login before you can post comments or rate content.

If you don't have an account you can create a free one here.

2009 Sprint Cup Race for the Chase Standings

Driver Standings after the Checker O'Reilly Auto Parts 500

1 Jimmie Johnson 6492
2 Mark Martin -108
3 Jeff Gordon -169
4 Kurt Busch -211
5 Tony Stewart -285
6 Juan Pablo Montoya -289
7 Greg Biffle -321
8 Denny Hamlin -352
9 Ryan Newman -411
10 Kasey Kahne -476
11 Carl Edwards -520
12 Brian Vickers -666

NASCAR Schedules

abc

Ford 400

Homestead-Miami Speedway
03:30 PM, 11/22/2009

Poll PositionView All

Which has been most detrimental to NASCAR television ratings and attendance this season?

Promotions

  • Play "WIX Filters' Pick 3" stock car fantasy and win prizes. Season 2 is now in session!

  • Tweet your thoughts about each race and join the conversation with other fans.

  • Drive an authentic NASCAR Sprint Cup car at the NASCAR Racing Experience.

  • Make weekly pics for the Chase and be entered to win weekly SPEED Merchandise.

NASCAR Community Join the Community

In the Forums View All

Presented by

Don't have an account yet?

Insiders Guide to NASCAR

Register with SceneDaily.com and get access to the following features:

  • FREE Insider’s Guide to NASCAR (available as a PDF download)
  • Daily NASCAR news updates delivered directly to your e-mail
  • Pre-race and Post-race emails delivered each race week
  • Ability to comment on blog and news articles
  • Information on new website features and upcoming contests
Create my Account

Login

Forgot Password?
Login or Create an Account