DEI, Chip Ganassi Racing To Merge Into Four-Car Sprint Cup Team
DEI and Chip Ganassi Racing (CGR), which currently field four- and two-car NASCAR Sprint Cup teams, respectively, next year will "together field one four-car" Sprint Cup Series team known as Earnhardt Ganassi Racing with Felix Sabates, according to Jim Utter of the CHARLOTTE OBSERVER. For the new organization, driver Juan Pablo Montoya will drive the No. 42, Aric Almirola will drive the No. 8, Martin Truex Jr. will drive the No. 1, while a driver for the No. 41 car "will be announced later." The future of DEI driver Regan Smith also was "left unresolved." Sources said that more than 100 jobs "will likely be lost in the merger," and "many of those affected at DEI were told of their status during an afternoon meeting" yesterday (CHARLOTTE OBSERVER, 11/13). Sources said that the teams are "expected to compete under the Chevrolet/General Motors banner of DEI." ESPN.com's David Newton notes CGR has two years remaining on its Dodge deal, and Dodge Motorsports Senior Manager Mike Delahanty said that "no final decision has been made on how the merger will work." Newton reports Dodge was a "key player in the merger," as it "gave its blessing" to CGR Owner Chip Ganassi to pursue the partnership with a Chevrolet organization. Delahanty: "Under these unprecedented times there are business solutions that no one ever thought possible." Newton notes other details "such as which shop the team will work out of have yet to be decided" (ESPN.com, 11/13). In Winston-Salem, Mike Mulhern notes the "plus for General Motors would be adding Juan Pablo Montoya to the Chevy roster, most likely with Ganassi's Target sponsorship" (WINSTON-SALEM JOURNAL, 11/13). Delahanty said of the possibility of the remaining Dodge teams getting more money, "That's a business decision that we would look at. If something like that did happen, that's something we wouldn't share" (SCENEDAILY.com, 11/12).
SIGN OF THINGS TO COME? ESPN’s Marty Smith said of the DEI-CGR merger, “This is the reality of the sport right now. These are two teams doing everything they can to make sure that they weather the economic storm right now. ... It will definitely resonate throughout the sport.” ESPN’s Brad Daugherty said mergers are “something we’re going to see more of as we go forward.” Daugherty: “The ability to consolidate resources in order to be able to compete at the highest levels is what a lot of teams are going to be looking at doing” (“NASCAR Now,” ESPN2, 11/12).
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Unger Says Toyota Looking At
Way To Cut Down On Costs |
ECONOMIC EFFECT: Delahanty said that Dodge "already is working with its four official Sprint Cup teams ... to find internal production efficiencies as sponsors become harder to find, crew layoffs loom and more team mergers ... may arise." Meanwhile, Toyota Motorsports National Manager Les Unger said that the "mood at Toyota, in general, was one of concern." Unger: "Our task is to look at every single dollar -- how we can be efficient and more proactive in saving dollars. ... We're going to cut out the fat, but we're going to be there." Unger added that Toyota will "seek efficiencies in the areas of hospitality, advertising and promotions involved in its NASCAR programs" (DETROIT FREE PRESS, 11/13). The AP's Mike Harris reported GM and Ford "remain confident they will stick with NASCAR for at least the immediate future." Chevy Racing Marketing Dir Terry Dolan: "From a NASCAR standpoint, we're fully committed to fulfill the agreements we have in place. We've built a program over the years that has paid some quality dividends back to General Motors. What has to happen, though, I think, whether it's us or any other key sponsor looking at the sport, is to determine if the current cost that it takes to participate is consistent with other opportunities in the marketplace? If not, we have to look at ways to become more cost-efficient." Ford Racing Technology Dir Brian Wolfe: "Ford's racing program falls under marketing and sales, and when revenues are down, the budgets for all marketing programs are down, including racing. We're not immune, nor should we be" (AP, 11/12).
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