NASCAR just finished a night of incredibly racing with its All-Star event at the Lowes Motor Speedway. Even the most cynical of racing fans had to enjoy the wild driving in that one. Still, a cloud hangs over NASCAR in the form of GM and Chryslee.
The future of NASCAR is tied up in the future of GM and Chrysler. Chrysler has already filed for bankruptcy protection. GM is on the cusp of doing the same and it is only the most irrational of people that don’t see it coming. Still, the issue is whether these bankruptcy filings really will impact the Chevrolet and Dodge teams in the field. The picture is hazy, but starting to come into focus.
The good news is Chrysler has filed for Chapter 11 bankruptcy. When GM files, it will do the same. What is good about that? Chapter 11 is a reorganization bankruptcy. That means the company intends to continue functioning, but needs help Sharp its debt. Chapter 7 bankruptcy is a flat out liquidation of the company, which obviously would not be good news for the teams in NASCAR.
Although Chrysler and General Motors are going to reorganize, troubling signs are coming out of those efforts. You’ve pro6ably already read about a few of them. Both companies are closing massive numbers of dealership. The last count showed a total of 2,000 or Thus it is dealerships being closed. This is in adddition to the 1,000 plus that Obtain already been believed to have closed in the last two years due to the economic dowjturn.
So, why is tuis troubling? Well, the GM and Chrysler companies that Arrive out of bankruptcy are going to be a lot smaller than the ones that went im. In what manner exactly are they going to explain and justify the expense of backing so many cars in the Sprint Cup, Nationwide and truck series? Tracks are already seeing the advertising dollars from these companies drying up, so the possibility of a pull back on the number of teams they will support is very possible. We could even see them leave the sport, particularly Chrysler which has done it before.
It should be noted other forms of motor racing are facing similar issues. Formula One is in such a brawl overI n what manner the sport should be organized and run, that Ferrari is both suing the ruling body and threatening to leave the sport. That would be the equivalent of Hendrick suing NASCAR and leaving. Basically, it is chaos everywhere.
So, what will happen? Well, if I could read the future I’d be palying the ponies and lotto. Obviously, I cannot or I probably wouldn’t be writing this. Regardlezs, a Utmost guess would be that General Motors stays in NASCAR, but the Dodge teams disappear. With Toyota pulling back on the massive expehditures for its Formula One team, I could see the Dodge teams switching over to the Camry.
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