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Uncertainty Over GM Felt In NASCAR Garage
Tuesday, 10 March 2009 09:21

 

Reports last week indicated that an out-of-court restructuring of General Motors may not do enough to save the struggling company and that bankruptcy is a very real possibility. While this would have major implications of the national economy, what it would mean to their commitment to NASCAR has yet to be seen, but it clear those in the garage are keeping a close eye on the situation.

 

GM explained a statement Friday they have not changed their position on bankruptcy, saying, "Restructuring the business out of court remains the best solution for GM and its constituents."

 

According to the Washington Post, GM is currently seeking $30 billion in federal aid. Whether this taxpayer money would help keep GM afloat is uncertain. One thing that has become evident, however, is that bankruptcy would drastically change GM and lead to a, "dramatic deterioration of revenue due to lost sales."

 

With so much uncertainty and negativity surrounding GM and its restructuring process, one can't help but wonder how all of this will affect GM's relationship with NASCAR. In the last year we have seen Dodge leave the Truck Series and, as economic conditions continue their downward spiral, it is unclear whether more cutbacks are in the near or distant future.

 

Judging from the response in the garage this weekend in Atlanta, there is a sense of uncertainty and perhaps just a hit of denial over the fate of the biggest of the Big Three.

 

Sitting in the media center following his impressive victory, Kurt Busch explained how much this win meant not only for himself and his team, but for Dodge.

 

"For Dodge, particularly, the trouble that they're going through with the government, I hope this gives them some momentum this week," Busch commented.  "They sit down with the government, show motor racing helps sell cars on Monday, give morale to their team."

 

Team owner Chip Ganassi refused comment on the situation, adding, "It's none of my business."  But, Mr. Ganassi, it is in fact your business.  NASCAR has endured the loss of manufacturers and the withdraw of industry support before in its history, but never before have the two been so entwined.

 

"It would be totally devastated," veteran Bill Elliott said of GM's potential bankruptcy. "You've got all these teams that are relying on millions of dollars from GM, because, from what I understand, they get quite a bit of money right now, you've grown to build a deal this big and now that they go away, it's going to hurt them."

 

While Elliott understands the severity of the situation and the impact a loss of GM would have on not only the teams, but the sport itself, others are more optimistic.

 

"I think it'd be a big impact, but I don't think that's going to happen," Earnhardt Ganassi Racing driver Martin Truex Jr. told HardcoreRaceFans.com "I think they're going to restructure and get the bailout, take care of business and be better than they ever were."

 

"I know there is a sense of concern," former Daytona 500 champion Ryan Newman pointed out. "Got a little bit of information about that situation. Nothing that tells me what is going to happen or anything like that but I know it is a tough time for everybody out there and Chevrolet is doing their job to ensure that they don't get caught in trouble in a situation like that. It is kind of a wait and see situation I think for them as well as everybody else out there. We will have to get through this cycle and see how things go. But I am doing what I need to do as a Chevrolet driver to try to help them in all ways possible."

 

Chevrolet drivers Tony Stewart, Kevin Harvick and Jeff Burton understand the problems with GM are simply part of a larger problem.  Perpetuated by negative news and the falling stock market, Americans are holding onto their money tighter than they have in nearly twenty-five years.  Without an influx of consumer money into the economy, on top of the inability for a majority of Americans to earn credit, GM?s problems will only get worse.

 

 "We have got to get people to not be afraid to spend money again," Stewart said Friday at the Atlanta Motor Speedway.  "That's the only way the economy is going to recover is to keep people confident that it's okay to spend money. The good news is GM is doing their part.  Chevy is building cars that are affordable and economic and efficient.  From a manufacturer side that's all you could ask for. I feel like they've really responded and done a good job in that aspect."  While he sees a way out of the situation, the new team owner recognizes the gravity of what a loss of any manufacturer would mean to the sport of NASCAR and its future.

 

"The fallout if we loose any of these manufacturers is going to be tremendous," Stewart added.  "I think it's at the stage now that we can't rely on our government to do it all for us. We have to take an active role ourselves I'm not saying just drivers or NASCAR, but I'm saying our country together we got to get off our wallets and go back to being Americans again and go back to living our lives the way we used to. I know that's easier said than done, but I think every time you turn on the news you're petrified. I sit there and watch the news and I beg to be able to switch to something else where I'm not so depressed."

 

One of the most prominent voices in the NASCAR garage, veteran Jeff Burton has always kept a close eye on politics and the economy and how they relate to the sport.  Much like Stewart, Burton realizes it is going to take an active part on every American's part to weather this storm and help GM and the rest of the economy recover.

 

"My biggest concern is more that people aren't going to look at cars," Burton explained.  Honestly my biggest concern is if the overall economy doesn't allow people to go look at vehicles to purchase them that's more of what I'm worried about because that impacts us in a great deal of ways the same way it impacts General Motors. My experience with Chevrolet in particular and their new vehicles, if people go sit in them and drive them they're going to buy them.  They've made huge improvements. So my biggest concern as it relates to Chevrolet is freeing up credit and giving people the security that they want to buy a car, that they have a job.

 

"We can talk about Chevrolet, but the real key is what is the overall economy" Chevrolet has shown for years that they're very committed to racing and that commitment is not going to go away," Burton went on to say. " But if our economy doesn't get jump started, if credit doesn't get freed up, if people don't feel secure about their jobs then not only is Chevrolet going to have a problem there's a lot of manufacturers of a lot of different products that are going to have major problems. So I have a much more concern about that."

 

For Kevin Harvick "who not only drives a Chevrolet, but also owns a NASCAR Nationwide and Camping World Truck Series team" all the discussion about GM's fate is undermining the larger problem.  A believer in GM's product and their strength as an organization, Harvick sees the manufacturer surviving this tough time and emerging stronger than ever.

 

"I don't know that you can just pin it on General Motors," Harvick pointed out.  I think if you want to go through the garage and really pin situations on just about any sponsor in the garage you can look at how bad it is for everybody. General Motors is a very strong brand.  Obviously they are going through tough times, but they are in a wonderful restructuring process right now of putting their company back on their feet. I think when the economy turns they're going to be as good as they have ever been going forward. We?re all here to support them. It's a huge company. A very strong company and I think they'll be as strong as they ever were when all this turns in the right direction as with thousands and thousands of other companies that have restructured their company and made themselves more efficient. 

 

"I don't watch the news because it's so hard to turn the news on and everything is negative," Harvick added.  "It's always the worst is reported and I think from everything that everybody has talked about I think they'll be stronger going forward than they ever have been."

 

Harvick's thoughts seem to be the overall consensus in the NASCAR garage.  Sure times are tough, many will admit, but few are willing to go as far as imagine a NASCAR without a driving force as big as General Motors.  There are still a lot of unknowns surrounding this situation and only time will tell what affect, if any, a major restructuring or bankruptcy would mean to NASCAR and the future of the sport.