NASCAR - What Impact Will GM and Chrysler Bankruptcy Filings Have?

NASCAR just finished a night of incredibly racing withhave closed in the last two years due to the
its All-Star event at the Lowes Motor Speedway.economic downturn.
Even the most cynical of racing fans had to enjoySo, why is this troubling? Well, the GM and Chrysler
the wild driving in that one. Still, a cloud hangs overcompanies that come out of bankruptcy are going to
NASCAR in the form of GM and Chrysler.be a lot smaller than the ones that went in. How
The future of NASCAR is tied up in the future of GMexactly are they going to explain and justify the
and Chrysler. Chrysler has already filed for bankruptcyexpense of backing so many cars in the Sprint Cup,
protection. GM is on the cusp of doing the same andNationwide and truck series? Tracks are already
it is only the most irrational of people that don't seeseeing the advertising dollars from these companies
it coming. Still, the issue is whether these bankruptcydrying up, so the possibility of a pull back on the
filings really will impact the Chevrolet and Dodgenumber of teams they will support is very possible.
teams in the field. The picture is hazy, but starting toWe could even see them leave the sport, particularly
come into focus.Chrysler which has done it before.
The good news is Chrysler has filed for Chapter 11It should be noted other forms of motor racing are
bankruptcy. When GM files, it will do the same. Whatfacing similar issues. Formula One is in such a brawl
is good about that? Chapter 11 is a reorganizationover how the sport should be organized and run, that
bankruptcy. That means the company intends toFerrari is both suing the ruling body and threatening
continue functioning, but needs help cutting its debt.to leave the sport. That would be the equivalent of
Chapter 7 bankruptcy is a flat out liquidation of theHendrick suing NASCAR and leaving. Basically, it is
company, which obviously would not be good newschaos everywhere.
for the teams in NASCAR.So, what will happen? Well, if I could read the future
Although Chrysler and General Motors are going toI'd be playing the ponies and lotto. Obviously, I
reorganize, troubling signs are coming out of thosecannot or I probably wouldn't be writing this.
efforts. You've probably already read about a few ofRegardless, a best guess would be that General
them. Both companies are closing massive numbersMotors stays in NASCAR, but the Dodge teams
of dealership. The last count showed a total of 2,000disappear. With Toyota pulling back on the massive
or so dealerships being closed. This is in addition toexpenditures for its Formula One team, I could see
the 1,000 plus that have already been believed tothe Dodge teams switching over to the Camry.