US News | April 02, 2009 | 6 comments

Obama orders Chevrolet and Dodge Out of NASCAR

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ClipsFC
With their racing budgets deemed “unnecessary expenditures,” GM and Chrysler are ordered to cease racing operations at the end of the season.

In a move sure to spark outrage, the White House announced today that GM and Chrysler must cease participation in NASCAR at the end of the 2009 season if they hope to receive any additional financial aid from the government. Companies around the globe—Honda and Audi, to name two—have drawn down racing operations, and NASCAR itself has already felt the pinch in the form of reduced team spending. A complete withdrawal from America’s premier racing series is expected to save more than $250 million between GM and Chrysler, a substantial amount considering the drastic measures being implemented elsewhere.

“Automakers used to operate on the principle of ‘win on Sunday, sell on Monday,’ but the Auto Task Force’s research just doesn’t validate that as true,” said the statement from President Obama. While fans have decried the Car of Tomorrow for heavily limiting what little personalization the cookie-cutter series had previously allowed to participating manufacturers, and drivers have slammed its brick-like aerodynamics and unpredictable handling, even the governmental oversight committee sees that the full-scale regulation of the cars leaves the manufacturers very little space for research and development. “NASCAR is a racing series that regulates down to the smallest detail of the cars, where a car badged a Chevrolet or Dodge differs only marginally from a Ford or a Toyota. There’s no technological development to speak of.”

The statement goes on further to say the same demand will be made of Ford if it asks for government assistance. “In order to receive this money, corporations must demonstrate they will spend it wisely. Racing has been said to improve on-road technology, but frankly, NASCAR almost flaunts its standing among the lowest-tech forms of motorsport. NASCAR is not proven to drive advancements that transfer from the racetrack to the road, and this nation’s way forward does not hinge on decades-old technology. We need new, and we need innovation.”

The President realizes this will be an unpopular call, but stands behind the decision, saying, “This is an obvious cut to make, but it is not an easy one. This administration is not ignoring the tremendous sentimental value and emotional appeal NASCAR holds for so many Americans. But now is not the time for sentiment and nostalgia; now is a time for decisive financial action. If our automotive industry is to emerge from this recession intact, then these difficult decisions must be made.”
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6 comments // Obama orders Chevrolet and Dodge Out of NASCAR

  • AlienMonkeyFetus
  • cwhite
    • 0
      cwhite  
    • Going down the line...

      Clips - The teams are sponsored to the max, but the auto manufacturers also inject gobs of money (over $250M apparently) into the sport so that their cars can be competitive. These are not the cars we drive on the roads, obviously, but the manufacturers do get some data out of the competition. I don't know the details of the agreements between NASCAR and the manufacturers, but I think there's a deal between them to be able to put a Dodge, Chevy, Ford or Toyota sticker on the cars and, in essence, the manufacturers become sponsors of NASCAR. The body styles and many other components are extremely similar between the only four makes involved in the highest levels of the sport so the major distinction between the four makes is the stickers that proclaim a particular make. Oh, and that leads me to the point that if Dodge and Chevy both dropped out of NASCAR, it would only be Ford and Toyota left. Another manufacturer might jump at the chance to join NASCAR, but it took Toyota 5 years of development just to get to the point that they could enter into a race and keep up with the rest of the field and another year to win a cup race.

      Lisa - The reason the gov't can do that is because they loaned the auto manufacturers billions of dollars to bail them out of their bankruptcies. Therefore, the government became a major stakeholder in the companies. GM is now out of bankruptcy, so I presume this no longer applies to them.

      ceh - Huh? Neither of those statements make any sense. I recommend using punctuation and proofreading.

    • 2 years ago
  • ceh35504
  • ceh35504
    • 0
      ceh35504  
    • we should have known any thing the goverment gets envoled in they mess it up what do they know what it takes to sell cars millons of nascar fans do not drive lawnmowers

    • 2 years ago
  • LisaVlad
    • 0
      LisaVlad  
    • I know my BF drives nascar and they are completely sponsored down to the spark plugs. What does the gov. have to do with that?

    • 3 years ago
  • ClipsFC
    • 0
      ClipsFC  
    • Last I checked NASCAR's drivers and cars are sponsored by Corporations. There should be no cost to Dodge or Chevrolet or affect the use of bailout money. Maybe a Nascar fan can enlighten us..?

    • 3 years ago
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