CUP: GM, Chrysler Bankruptcies Touch NASCAR Teams

Sprint Cup

CUP: GM, Chrysler Bankruptcies Touch NASCAR Teams

The bankruptcy filings of General Motors and Chrysler are having ripple effects in the NASCAR Sprint Cup, Nationwide and Camping World Truck Series...

Tom Jensen | Posted June 12, 2009 Charlotte, NC

KHI co-owner Kevin Harvick has said he will continue to race the Chevrolet brand in the NASCAR Nationwide and Camping World Truck Series. (Photo: LAT Photographic)

The effects of the bankruptcies of General Motors and Chrysler LLC are definitely beginning to be felt throughout NASCAR.

Earlier this week, Chevrolet notified its NASCAR Nationwide and Camping World Truck Series teams that it is cutting its financial support in those series. Those financial reductions are part of GM’s attempts to reorganize and get out from under about $175 billion in debt.

General Motors issued a statement late Thursday confirming that it is scaling back its NASCAR involvement, without specifying any details.

“Chevrolet’s involvement in racing is a sound business decision that translates directly into the sale of cars and trucks,” GM said in its 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 with a significantly stronger balance sheet. While Chevy Racing is talking to its business partners about ways to reduce cost and maximize the return on investment, it is our policy to not talk about the details of business relationships with our partners.”

JR Motorsports, the Dale Earnhardt Jr.-owned NASCAR Nationwide team, will continue to campaign Chevrolets, the team said Friday. “We have been proud supporters of the Chevrolet brand our entire lives and don’t anticipate that ever changing,” said Kelley Earnhardt, general manager of JR Motorsports. “We are fully capable of adjusting our business model to accommodate this change, and with the backing of Hendrick Motorsports, we will continue to lend our full support to Chevrolet. The manufacturer support GM provides at the NASCAR Sprint Cup level is more critical in nature than in the Nationwide Series, and I hope Chevy is able to continue supporting that level, as the promotion of NASCAR works well for its demographics.”

Likewise, Kevin Harvick Inc., which runs NASCAR Nationwide and Camping World Truck Series teams, said it would stay the course. “Kevin Harvick Inc. has lost its manufacturer support,” said KHI co-owner Kevin Harvick 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.”

Earlier in the week, Richard Petty Motorsports laid off nine employees and cut salaries because Chrysler’s bankruptcy meant the automaker reduced its subsidies to the team. RPM is widely expected to switch to Toyota next season.

SPEED will have much more on this developing story throughout the NASCAR Sprint Cup LifeLock 400 weekend at Michigan International Speedway.

Tom Jensen is the Editor in Chief for SPEEDtv.com, the former Executive Editor of NASCAR Scene and a contributing Editor for TruckSeries.com. He is the author of “Cheating: The Bad Things Good NASCAR Nextel Cup Racers Do In Pursuit of SPEED,” and has appeared on television and radio shows to discuss NASCAR racing. Jensen is the past President of the National Motorsports Press Association. Jensen is the 1997 National Motorsports Press Association Writer of the Year and has won numerous national and state awards for news reporting, columns and feature writing. The Answer Man is back at SPEEDtv.com. Tom Jensen answers your questions during every race week and looks forward to hearing from you - please e-mail it to

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