General Motors cuts take effect immediately, but engine-support programs continue

By Bob Pockrass - Associate Editor
Friday, June 19, 2009
Team owner Richard Childress says his organization continues to support General Motors. (Mark Sluder / NASCAR Scene)

Team owner Richard Childress says his organization continues to support General Motors.

Mark Sluder
NASCAR Scene

SONOMA, Calif. – General Motors' cuts to NASCAR Sprint Cup teams will be effective immediately, but the manufacturer hopes to continue to support two organizations with engine programs, team owners and a Chevrolet official said Friday at Infineon Raceway.

Team owners Tony Stewart and Richard Childress addressed the situations for their organizations but would not say exactly how much has been cut. Childress said he expects the Earnhardt Childress Racing Technologies (ECRT) engine program he co-owns to continue.

According to documents filed in the General Motors bankruptcy case in federal court, GM had a $2,538,750 payment due to "RCR Enterprises, LLC, and its affiliates, collectively RCR" last Monday. Childress declined to verify whether he got that payment – “that’s kind of personal, I didn’t ask you if you got your paycheck this week,” he said.

“It’s not going to affect our performance at RCR,” Childress vowed. “It’s not going to affect our technology.”

Stewart confirmed that the cuts are effective “immediately” as GM is transforming into a new company through Chapter 11 reorganization.

“We’ll make it through the year, for sure,” Stewart said. “We’re supportive of what Chevy had to do. There’s a lot of people that don’t even have jobs. We just got our budget cut percentage-wise.

“We’re still [getting] support from Chevy and we’re proud of that. … It’s a hard situation for them. You can see it in their eyes when they came to the shop, it’s not a meeting they wanted to have. They didn’t want to tell us that we’d have to take a cut.”

Stewart gets his engine and technological support from Hendrick Motorsports, and sources indicated that the cuts to their organizations were not as drastic as to RCR and Earnhardt Ganassi Racing.

“We’ll be working with [Chevrolet] on a lot of different stuff just like we have in the past,” Childress said. “All business numbers and business deals [are personal]. … Our deal here is GM, we talked about a lot of different things and we are very supportive of them on the track and off the track.”

Chevrolet NASCAR program manager Pat Suhy wouldn’t go into specifics about the talks with the teams or whether the cutbacks were in cash or technology or both.

“When you talk about adjustments, it really affects everything,” Suhy said. “It’s between us and them how they choose to allocate it as far as the different options. … What we do for them is one big package of support.”

It is important to have two groups – RCR and Hendrick – doing engine development and having separate engine programs, Suhy said.

“It’s very important to have more than one group working on parts – body parts, sheet-metal parts, engine parts, because if we don’t have that, you get into a scenario where one guy thinks he’s got the best idea and you don’t have anyone to balance that,” Suhy said. “You don’t have any checks and balances.”

Childress said he didn’t know how he would handle the cuts or if there would be layoffs, but he stressed he plans to keep all four Sprint Cup cars, his Nationwide program and his engine shop.

“Right now, we plan on going forward,” Childress said. “Everything is intact to go forward with [engine shop] ECR for next year and hopefully if everything works out, we should have plenty of business there besides RCR and the Earnhardt Ganassi. … ECR has its own budget and its own group of people.”

Hendrick Motorsports driver Mark Martin said the teams will be able to accommodate for the cutbacks.

“I think I know the level or the round-about area that [a] manufacturer’s involvement is in a race team's overall budget and for most race teams, I don’t think it will put them out of business, if you know what I mean,” Martin said. “I don’t want to minimize it.

“I’ll say that everybody is feeling pain and all the race teams are having to – right now we’re experiencing a correction just as the stock market or just like your average citizen, many of the people that are fortunate enough to be keeping their jobs may have to take a cut in pay – [and] this is kind of the same thing.”

As far as all the cuts, at least one competitor doesn’t expect to see a big difference on the track.

“I think that it’s just a money factor that’s going to be cut back from those teams,” said Joe Gibbs Racing driver Kyle Busch, who drives a Toyota. “The money that Chevrolet will write a check to the teams [for] may be smaller or may be none. The teams still get all their research and development.”
 

Comments

51 responses to "General Motors cuts take effect immediately, but engine-support programs continue". Post a Comment.
  1. 1
    SS396Chevelle said:
    Jun 19, 2009 at 7:08 PM

    When you listen to MSP aka "said" or wormdirt they have predicted and stated as a fact that Chevy is finished with Nascar. So little they know.

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  2. 2
    motorman said:
    Jun 19, 2009 at 9:59 PM

    i wonder if the drivers with a personal service contract with GM will take a hit ???

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  3. 3
    motorsportsphotography said:
    Jun 19, 2009 at 10:19 PM

    #1, I think you have been smokin to much wacky weed in Goose Creek! I have never said that Chevy was pulling out of NASCAR.

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  4. 4
    Andi said:
    Jun 19, 2009 at 10:22 PM

    #2, I was wondering about that myself and I haven't heard anything on that just teams.

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  5. 5
    SS396Chevelle said:
    Jun 20, 2009 at 7:36 AM

    #3 I thought you said I smoked too much pot serving my country in Vietnam, along with inhaling too much Agent Orange. End of factory support as you stated before is the end of Chevy in racing. You already said how Acura of all cars is interested in Nascar. How Rick first name basis would shift. What you don't know and I do know is Mr Hendrick is loyal and when he says he is going to stay with Chevy as did Tony Stewart, you can take that to the bank. Didn't you not say this? "Lets just say this is the end of factory support FOREVER in all 3 Series. It was no surprise to anyone. NASCAR will survive but as far as any new technology coming down from them it is over. And as far as money from them. GM was the only one left giving anyone in the NW Series anything. Dodge and Ford stopped along time ago." Chevy just told Hendrick, Stewart, and Childress they will continue to give them all new technology.

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  6. 6
    SS396Chevelle said:
    Jun 20, 2009 at 7:49 AM

    I guess the headline was wrong and you were right MSP. BTW will you be in the huge toyota tent at Atlanta? I have tickets for it.... This way we can meet face to face and you can see what a pot smoking, Agent Orange Vietnam viet looks like face to face.

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  7. 7
    SS396Chevelle said:
    Jun 20, 2009 at 7:59 AM

    #3 MotorSportsPhotography, when you take a shot at me for being a Vietnam Vet, you are taking a shot at all Vets who served this country and died for it. We are all ONE. God Bless the USA.

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  8. 8
    sstarbraintree said:
    Jun 20, 2009 at 9:58 AM

    i am surprised that gm, ford and dodge have not pulled out long ago when was the last time a sprint cup car looked like an Impala, fusion or charger or a camry for that matter

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  9. 9
    Phoenix987 said:
    Jun 20, 2009 at 3:35 PM

    #8, they never did, because those models didn't exist when NASCAR started moving from the stock car model.

    I'm not surprised GM is going through cuts, but I am kinda surprised at what RC said. "it won't affect our performance" or whatever. I would hope that RCR will pick up performance since they are having a terrible year. Missing $2M in payments might hinder them even more...

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  10. 10
    Werner said:
    Jun 20, 2009 at 3:55 PM

    i was amazed by his statement as to if he got paid by GM...GM has been bailed out by the FED and filed bankruptcy...i would think that any income or expenses would be on the public record...on a better note...GM has recalled 900 employees...to build crossover vehicles...apparently when the gas prices went lower the must have sold a few...now that prices are on the rise...well....

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  11. 11
    bthompson133 said:
    Jun 20, 2009 at 4:26 PM

    gm and dodge shouldn't be able to spend ANY MONEY on support until thet pay the people(us loan) back. we deserve our money first!!!!!!!

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  12. 12
    Phoenix987 said:
    Jun 20, 2009 at 4:55 PM

    I love it when people gripe about how 'we' bailed out the car companies and all the banks. It's amazing how some people just seem to think that because the government is loaning companies money that it's automatically taxpayer money. The money the companies got was in reality non-existent money at the time they were told they'd get it (as in, the money wasn't printed yet). To put it in easy terms: the bailout money was essentially money the government printed to give to the banks. None of the TARP money existed before that was implemented. If I remember correctly, the bailout used only fiat money, but I cannot remember the full term.

    So sure, you can gripe about how 'your' money paid for GM or Chrysler to survive- except that likely, that isn't the case; the money was fiat money that didn't really exist before this fiasco that's due to people not understanding simple economics and what "cyclical" means.

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  13. 13
    harref said:
    Jun 20, 2009 at 5:27 PM

    Folks, this is just the beginning. I'm sure before it's over, Hendrick will be the only team sponsored by GM and it will be limited, very limited. They are helping Stewart because of promises made to him to leave Gibbs, move from Toyota and return to Chevy. I'm sure Hendrick will not get as much support, leaving them in a delima with Stewart. It's going to be interesting.

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  14. 14
    motorsportsphotography said:
    Jun 20, 2009 at 5:50 PM

    Let the big 3 fall. We have been dependant on them too long. They have taken advantage of the American people for years with their gas gussling cars. Its been proven that the cars we drive can get 25-35mpg if it wasn't for all the sensors and computers they put on the cars so we don't get good gas mileage. They deserve what they get. I looked at the parking lot today at the track and I saw plenty of foreign cars so let them in and forget about the big 3.

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  15. 15
    clintonpillow said:
    Jun 20, 2009 at 6:42 PM

    #14 hOW STUPID CAN YOU GET, IF gm AND cHRYSLER SHOULD FAIL, NOT ONLY THE PEOPLE THAT WORK THERE WOULD HIT THE UNEMPLOYED GROUP, IT WOULD ALSO PUT ALL OF THE PEOPLE THAT DEPEND ON THEM FOR THEIR EMPLOYMENT, THE ECONOMY WOULD GER TO THE POINT THAT PEOPLE WOULD SHOOT YOU IN THE BACK FOR THE PRICE OF A HAMBURGER, THANK OF WHAT YOU JUST SAID.

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  16. 16
    SS396Chevelle said:
    Jun 20, 2009 at 6:45 PM

    Howard the coward. You most certainly said. "End of factory support" Wrong again. Don't forget to let me know where the HUGE TOYOTA TENT IS IN ATLANTA. You are a fraud and a coward. Nice remark about the veteran's. Oh by the way after 9/11 the big 3 gave a total of $60,000,000 to help the Red Cross. The total for Toyota, Honda, and Nissan was a big $0.00. Even Harley Davidson kicked in $4,000,000. You are a moron, every toyota has a computer and sensors..

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  17. 17
    motorsportsphotography said:
    Jun 20, 2009 at 7:25 PM

    And like I said I never once said that Chevy was ending Factory support. Get a life LOSER!

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  18. 18
    Werner said:
    Jun 20, 2009 at 7:27 PM

    SS396...what's with the name calling....MSP never said that Toyota's didn't have computors and sensors...you did...and he's right about the parking lots...go to Walmart and look at all the foreign cars...it's the people who quit buying the domestics...the question is why?..

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  19. 19
    gbedard804 said:
    Jun 20, 2009 at 7:59 PM

    It matters not whether some of the major teams are continuing to receive money or just technical support or both. It also doesn't matter if there is a perceived notion that the major auto marketers are retreating from their involvement and commitment to our sport. It would just be bad business to completely withdraw from major motorsports altogether. Of course foreign auto producers would love this. And here in lies my point: In order to further prevent encroachment into the automobile market here in america, our domestic auto producers would be foolish to discontinue completely any form of involvement in motorsports. There is just too much at stake. Marketing dollars still must be spent to attract any and all potential consumers to our domestic automobile products. If the american auto market has any hope of surviving over the long term, it must continue to infuse marketing dollars into this volatile market.
    Foreign auto producers are spending huge sums of money in various motorsports endeavors, and their share of the automobile market appears to be very strong..sales conversion numbers would appear to substantiate this. Whether, this is a measurable benefit of their involvement in motorsports is debateable. It certainly doesn't hurt. Certainly, the CEOs of our american auto producers know this, and also know that they must maintain their commitment to our sport in order to avoid more erodment of market share. It is the only logical choice!

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  20. 20
    bthompson133 said:
    Jun 20, 2009 at 8:09 PM

    #12 dumb a-- you should never handle money! the "loans" from the gov(us) didn't have anything to do with printing money, it's paper shuffling of debt. if they couldn't keep track of their own ,why let them lose ours?

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  21. 21
    motorsportsphotography said:
    Jun 20, 2009 at 8:14 PM

    #20, I agree that they will stay committed to a point. Which is the littlest they will have to spend to keep that sticker on the front of the car. they could stop the engineering part of it right now because Toyota isn't engineering any new parts or engines. Ford will be coming out with a new motor which will probadly be the last for them. The automakers budget is about 20% of a teams budget which for some teams is very substantial. right now everyone is pretty equal on the track. you see Toyota, Chevy, Ford, and Dodge since they got everything right with the new engine all running up front. The teams can make up that money with new sponsorship when the economy gets better.

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  22. 22
    SS396Chevelle said:
    Jun 20, 2009 at 8:18 PM

    #20 well said.

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  23. 23
    SS396Chevelle said:
    Jun 20, 2009 at 8:56 PM

    MSP have the crap in your house is made in china. You are just a sad person and can't see how GM and Chevy will come out of this stronger. They have already put 900 workers on call in TN. The Chevy Volt will be a US Made car with US Battery's from the new plant they just opened, and made in MI. The new Cruz will get up to 40 MPH and again made in MI. In fact there will be 2 Cruz plants one for US consumers and the other plant for overseas consumers. The profits will remain in the USA and not end up in Japan and the loans will begin being paid back in 2011.

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  24. 24
    SS396Chevelle said:
    Jun 20, 2009 at 9:00 PM

    #18 read your post and then read what you said. "motorsportsphotography said:Jun 12, 2009 at 9:03 PM Lets just say this is the end of factory support forever in all 3 Series. It was no surprise to anyone. NASCAR will survive but as far as any new technology coming down from them it is over". Care to recant??

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  25. 25
    motorsportsphotography said:
    Jun 20, 2009 at 9:15 PM

    Maybe you should learn how to read. I never stated that Chevy was ending Factory Support. Just like my post say " Lets just say" meaning it will probadly be the end. I never said it happened.

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  26. 26
    SS396Chevelle said:
    Jun 21, 2009 at 9:51 AM

    I am reading it. "this is the END of Factory SUPPORT FOREVER". What part of that statement isn't implying the END OF FACTORY SUPPORT FOREVER? Really do you want me to post your entire statement? You were talking and Chevy and Dodge. You could be right with Dodge as I have no idea of their plans for Nascar, but Chevy whether you can admit to it or not, I have reliable information. I'm not getting this stuff over the Internet as you say I am. I don't know anything about Ford or Toyota and I admit it... When it comes to Chevy I do know what I am talking about.

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  27. 27
    aconley8 said:
    Jun 21, 2009 at 11:04 AM

    good for you SS396 and I know that what you say about GM is absolutely correct. and let's talk taxpayers buyouts that so may American seems to be up in arms about. Perhaps they don't know that taxpayer money built toyota factories in the south. That along with all the other support the southern senators so graciously gave to them they also are emempt from paying taxes. I would say that the money that taxpayers have invested in both GM and Chrysler is equal to the amount of money given to Toyota with one exception...Toyota will never have to pay back a dime to the U.S. while GM will pay back every cent.

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  28. 28
    Werner said:
    Jun 21, 2009 at 11:05 AM

    off topic...know what irks me most about that useless Vietnam War, all the lives lost, all those injured, physicaly and mentality...and for what?...at one time not even the VFW would recognize them until the WW1, WW2 and Korean vets were dying off and membership declined...and what did we get for all those countless lives lost and injured...we now get to buy shoes from Vietnam...there are no happy Vietnam Vets...i'm done...

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  29. 29
    Georgethompson said:
    Jun 21, 2009 at 11:59 AM

    Toyota employs 36,000 Americans and keeps 400,000 Americans making smaller parts for the Toyota fleet in the US. The United States EPA has awarded Toyota with a ENERGY STAR Sustained Excellence Award in 2007, 2008 and 2009. Toyota's fleet of vehicles averaged 26.69 mpg city, and 32.05 mpg hwy which exceeded all other major manufactures. They gave 1 million dollars to the restoration of the Florida Everglades. They are good for America and it doesn't matter if the money goes back over to Japan because since the war ended we don't have to worry about Japan bombing us or anything else like these other countries.

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  30. 30
    Georgethompson said:
    Jun 21, 2009 at 12:17 PM

    Also, Toyota is donating 5 hybrid cars and $500,000 to help support Grand Canyon National Park’s educational programs and safety efforts. The donation is part of a larger initiative that the company is sponsoring to help support the National Park Service. In total, Toyota will donate $5 million and 21 hybrid vehicles to help support five different parks. I think that they are putting money back into America unlike the other manufactures that just pollute are lakes and leave the sites they have used for years abandon and polluted for years for us Americans to pay to clean up.

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  31. 31
    SS396Chevelle said:
    Jun 21, 2009 at 12:18 PM

    Werner, you are right there are no happy Vietnam Vets. Being one I have to protect my fellow men and their memory for as long as I live. We were treated like dirt and I will not allow it to continue. Hope you understand what I am saying.

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  32. 32
    Georgethompson said:
    Jun 21, 2009 at 12:54 PM

    Also, The massive GM plant in Janesville, Wis which will close after being opened in 1919 as one of GM's first and oldest plants will close on Dec 23. It will sit abandoned because GM has used it as collateral on loans and it cannot be used according to US government papers. The massive plant is a whooping 4.8 million-square-feet and sits on 250 acres of land. In addition, GM must maintain the land, buildings and fixtures. The Buildings can't be demolished and the fixtures and other personal property must not be removed, according to the mortgage document recorded at the Rock County Register of Deeds office. This plat is a toxic waste dump according to the local EPA. And all of GMs sites are just as bad. The big 3 have ruined our country by not going Green 30 years ago. Now they want us to bail them out. I say let them die and let whoever can build the best car be the next generation of American car. We have had enough.

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  33. 33
    Georgethompson said:
    Jun 21, 2009 at 1:17 PM

    And in case you are wondering where those trucks that were made in Janesville will be made next. GM’s plant in Silao, Mexico. Is this what you call a great American Company.

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  34. 34
    SS396Chevelle said:
    Jun 21, 2009 at 1:20 PM

    Hey Georgethompson how much did Toyota donate to the Red Cross after 9/11?? The big 3 domated 60 Million and Toyota, Honda, and Nissan donated zip. So who cares about donating 5 cars. Who on this earth has ever heard of going green 30 years ago?? BTW it's way to late to say let them die. The bailout is a fact, the Chapter 11 is in progress and GM will be back.

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  35. 35
    Georgethompson said:
    Jun 21, 2009 at 1:42 PM

    Please don't double the numbers to make them look good. GM donated 10 million along with 10 million from each of the other two. And the bailout wont help them. The #1 selling car in the US is the Toyota Camry. As far as car manufactures going green, Alternative Fuels have been on the drawing boards since the late 70s. And Im not talking about 9/11, Im talking about was is good for our environment and the big 3 have proven they don't care about it.

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  36. 36
    Georgethompson said:
    Jun 21, 2009 at 1:47 PM

    And I'm not MSP or Worm Dirt. You better have your facts straight when you talk to me because I am a supplier to the automotive industry and I am big on our environment. And its 21 cars and 5 million dollars.

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  37. 37
    SS396Chevelle said:
    Jun 21, 2009 at 2:20 PM

    Who are you? Do we know?? Supplier to the automobile industry and you want the big 3 to shut down? That sounds like a smart business deal. How can I invest?? Do you use trucks to ship your supplies or do you use rail?

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  38. 38
    SS396Chevelle said:
    Jun 21, 2009 at 2:21 PM

    BTW I like Wormdirt.

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  39. 39
    SS396Chevelle said:
    Jun 21, 2009 at 2:25 PM

    #37 If you are such an environmentalist then get on Japan for killing thousands of whales each year. It goes both ways..

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  40. 40
    mrbreeze18 said:
    Jun 21, 2009 at 3:41 PM

    To the reference above about Hendrick being "loyal" to chevy... Joe Gibbs was the same way 5 years ago. That's one reason I stuck by him when Bobby Labonte left. My how things changed when Toyota dangled that money and prestige his way. He went from being a "loyal" GM guy to "we want to be the top team of whatever manufacturer will support us."

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  41. 41
    jr88fan said:
    Jun 21, 2009 at 4:57 PM

    I agree with you Mr Breeze, If Hendrick is so loyal how come he is a silent owner in a Acura American Le Mans team with Tom Anderson. They are flying under Mexican colors with Lowes as a sponsor. I guess GM doesnt know that but many of us do.

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  42. 42
    jr88fan said:
    Jun 21, 2009 at 5:01 PM

    Hendrick is all about the money and winning. Even when it came down to going to prison he all of a sudden got cancer. he looks pretty good today. Go Dale Jr88.

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  43. 43
    SS396Chevelle said:
    Jun 22, 2009 at 7:46 AM

    #27 aconley8 I couldn't agree with you more. It's hard to find exact amounts but it appears the US government gave 3 billion away in tax benefits to have Toyota and Honda and the rest build cars here. Japan didn't make this move to put Americans to work, they did it to save on transportation costs. They put their own employees out of a job.

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  44. 44
    motorsportsphotography said:
    Jun 22, 2009 at 5:42 PM

    Camry, #1 selling car in America 10 years in a row. That speaks volumes for the American people.

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  45. 45
    SS396Chevelle said:
    Jun 22, 2009 at 7:29 PM

    Ford is the best selling truck in America. When work needs to be done Americans pick USA trucks, Chevy is second. That speaks volumes when you want dependability.

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  46. 46
    SS396Chevelle said:
    Jun 22, 2009 at 8:41 PM

    Forgot to add GMC is third and Dodge 4th.

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  47. 47
    motorsportsphotography said:
    Jun 23, 2009 at 4:21 PM

    http://gmcourtdocs.gardencitygroup.com/pdflib/938_50026.pdf

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  48. 48
    SS396Chevelle said:
    Jun 24, 2009 at 8:02 PM

    What in the world does that NON law suit have to do with Ford, Chevy, GMC, and Dodge outselling toyota trucks? Have yet to see a Camry police cruiser on the streets. Lack of power for sure, they can't even make a V8 car and they race in Nascar. What a joke.

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  49. 49
    j88fan2008 said:
    Jun 25, 2009 at 12:22 PM

    Please do not confuse me with J88FAN in posts 41 &42. Since they have changed partial E-mail addresses some are close to others. I'm a Jr fan who happens to respect Mr Hendrick.

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  50. 50
    keith308 said:
    Jun 25, 2009 at 2:00 PM

    Chevelle
    The only reason ford is 1st is because they don't count the Gmc truck as a GM truck. These two together which are near the same outsell Ford.

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  51. 51
    SS396Chevelle said:
    Jun 26, 2009 at 6:46 PM

    You are right Keith. My bad.

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