What Happens to NASCAR If GM Files Bankruptcy?

As we all know, the auto makers have been goingEarnhardt Ganassi, Stewart Haas, and Richard
through a brutal period. Japanese, German, American,Childress Racing all drive Chevrolets. These teams
French - it doesn't matter where they are from. Allinclude such notable drivers as Jimmie Johnson, Tony
indications are GM is going to file bankruptcy. From aStewart, Jeff Gordon, Mark Martin, Dale Earnhardt Jr.,
motorsports perspective, the question is whatRyan Newman, Kevin Harvick, Jeff Burton, and Martin
happens to NASCAR?Truex. All could be thrown into turmoil.
GM lost over 30 billion dollars in 2006. It just lostIf GM were to file bankruptcy tomorrow, the fallout
another 30 billion in 2008. The company is in horrificwould be tremendous. All contracts GM has agreed
shape and it appears there is no way it can hold offto suddenly are frozen. The bankruptcy court can
filing bankruptcy. The powers that be at GM, thecancel them if it so desires. This effectively means
unions and the government have been trying to findany supplier to GM or these teams is going to be
a solution, but the business model appears to simplyworried about not being paid. In such a situation, all
be a dud in these modern times.the Chevrolet teams will face a credit crisis. The hope
There are many questions about what a bankruptcywould be that NASCAR would step in and provide a
filing would mean. What about all the retired GMguarantee of payment, but there are no clear
workers who are living off of pensions and a healthindications NASCAR is in a position to do that.
plan that can no longer be supported? What aboutMost people can't picture GM actually being liquidated,
the current workers? These are serious questionsbut you should open your eyes. The company is not
that have no nice and clean answers. Bankruptcy isgoing through a bump in the road, it is going through
going to be brutal.a major bloodletting. A company that loses $30 billion
Motorsports are just that...sports. They are obviouslydollars a year before the current recession hit [2006]
not as serious as real life issues like people losing theirdoesn't need a "little help". It has fatal flaws.
jobs. Still, one has to consider what will happen to theA more reasonable guess of the outcome of any GM
NASCAR series when GM files. If health plans arebankruptcy would be the company would be broken
being canceled, you can be a bankruptcy judge is notup into smaller pieces and sold off - a great American
going to look positive on spending money on autoinstitution put out of its misery. If this comes to be,
racing. This could lead to a massive amount of turmoilthe NASCAR season is going to be a disaster with
in NASCAR.half the teams suddenly having no cars and parts.
Consider the Sprint Cup, the top series in NASCAR.What a mess.
The big GM brand is Chevrolet. Teams like Hendrick,