The news Wednesday from Chrysler headquarters in Auburn Hills, Mich., was grim — the company will close all 30 of its manufacturing plants for a month beginning Friday because of sagging sales — but indications are the company’s involvement in NASCAR will not change. An individual with knowledge of the situation said the closings will not alter Dodge’s involvement in NASCAR. Dodge has contracts with Gillett Evernham, Penske Racing and Petty Enterprises. All will be honored next season. “Dodge will be back next year,” the official said. Chrysler said in a release Wednesday that tighter credit markets are keeping potential buyers from the showrooms. With a slowing demand, the company said it must match production and save cash. “Chrysler dealers confirmed to the company at a recent meeting at its headquarters that they have many willing buyers for Chrysler, Jeep and Dodge vehicles but are unable to close the deal, due to lack of financing,” the company said in a statement. “The dealers have stated that they have lost an estimated 20 to 25 percent of their volume because of this credit situation.” Meanwhile, Ford Motor Co. announced late Wednesday afternoon that it will shut down 10 of its North American assembly plants for an extra week in January because of the slumping market in this country. The annual two-week holiday shutdown will now be extended through Jan. 12.(ESPN)(12-18-2008)
UPDATE: Chrysler plans to slash its overall NASCAR budget by more than 30% in 2009, Dodge Motorsports director Mike Accavitti told ESPN.com on Thursday. That reduction is due in part to the team-merger between Dale Earnhardt, Inc. and Chip Ganassi Racing, which removes Ganassi’s former three-team Sprint Cup operation from the Dodge fold. (Earnhardt-Ganassi Racing will run Chevrolets.) But Dodge will also cut back on at-track car displays, track sponsorships and promotions. It will, though, continue to support Penske Racing, Gillet Evernham Motorsports and Petty Enterprises as planned, Accavitti said. “We’ll definitely be on the track in 2009,” Accavitti said in a phone interview. Chrysler announced Wednesday it would, starting Friday, shut down all 30 US-based manufacturing plants for a month. Accavitti said that will have no bearing on any NASCAR relationship. Accavitti said Dodge evaluates return-on-investment annually “on every dime spent on NASCAR” to determine whether NASCAR should remain part of its advertising plan. Some wonder how cash-strapped automakers can choose to spend on auto racing when the market is so poor. To date, Accavitti said NASCAR has helped move product. And, he continued, there is but one way out of the current abyss: sell more cars.(in part from ESPN.com)(12-18-2008)