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NASCAR Hopes to Survive GM Bankruptcy

NASCAR chairman Brian France must make one more proof of his management abilities, as the most popular racing series in North America is now depending on the economic situation of its car manufacturers. Following Chrysler LLC Chapter 11-protection status more than one month ago, GM has also filed for bankruptcy earlier this week.

Therefore, NASCAR is on the verge of losing two important car makers from an overall four, which may very well equal a championship collapse. If Chrysler's Dodge has never been a sine-qua-non player in the NASCAR Series, GM's Chevrolet is the winningest brand in the sport, having won no less than 32 championships in its premier class.

With the company's budget being cut down to a minimum, there is a risk of GM not pumping any more money (or reduce their spending dramatically) into their NASCAR operations. The US auto maker has closed 9 plants and idled an additional three during the course of the past week, in an effort to cut labor costs.

Under the circumstances, Toyota and Ford are the only Chapter 11-free auto makers currently running operations in NASCAR, but it is believed they will also reduce their budgets ahead of the 2010 season. Despite the difficult situation, France is still hopeful that the popularity of the sport and the way it provides advertising platforms will make the two car makers think twice before including them in the cost-cutting list.

Our hope and expectation is that we will fare at the top of the list as to things you would not want to cut. I believe that to be true. They're still going to be a company that needs to sell cars and trucks. We're still the best place in the country to do that from a sponsorship standpoint and the related benefits that you receive,” said France.
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