Bankruptcy Not Expected To Seriously Affect GM's NASCAR Ties

GM Will Continue To Race Cars In NASCAR As Long As It's A Brand

DAYS OF THUNDER: In Ft. Worth, Jeff Caplan writes around NASCAR, "expectations are that GM will walk away from more expiring contracts at the end of the year, yet remain invested enough to maintain a profile with NASCAR's legion of brand-loyal fans as it regains footing." GM recognizes the "unique kinship the auto manufacturers share with stock car racing and its fans," who "embrace corporate sponsors as the lifeblood of the sport." Fans often "choose their NASCAR rooting interests by the nameplate on the car." GM could "risk a fan backlash if it were to drastically diminish its profile at tracks and curtail support to race teams, perhaps even erode confidence in the very consumers most likely to buy a GM car." Caplan notes NASCAR sponsorships "reach so deep into nearly every sector of American consumerism that the health of NASCAR, its teams and the tracks don't hinge on the state of the automakers" (FT. WORTH STAR-TELEGRAM, 6/1).

WHAT ABOUT FORD? Speed TV's Dave Despain discussed the bankruptcies of both GM and Chrysler and said, "We keep hearing that they're going to emerge as stronger companies in part because they're going to have a new deal with the unions and cut their liabilities on healthcare." He said of Ford, "Is it conceivable that because you guys didn't go into bankruptcy that you end up in a weaker position because you're still stuck with those liabilities? Or is that just a misconception?" Ford Dir of North America Motorsports Brian Wolfe: "It's really a misconception. We've been very fortunate. Ford has worked for many, many years, have a very strong relationship with the unions. I'm confident whatever deal comes out of that, that Chrysler -- and we don't know about GM yet because nothing's been announced -- but whatever would come out of there will carry over to Ford" ("Wind Tunnel With Dave Despain," Speed, 5/31).

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