The Obama-NASCAR Controversy | GM and Chrysler ordered Out!

Normal 0

The White House is on another controversy today as they announced that GM and Chrysler’s participation in NASCAR racing must end at the end of the 2009 season. President Barrack Obama has ordered the two giant car makers to quit as NASCAR sponsors to remain eligible to receive additional financial aid from the government. He has argued that by doing so, the companies will be saving more than $250m in spending.

“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. “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.”

“In order to receive the government's 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."

NASCAR fans are outraged and NASCAR itself is reeling from reduced team spending. GM and Chrysler are one of the biggest sponsors of the stock car sanctioning body. NASCAR is already seeing massive cut-downs by the teams on the spending. Exit of these high-flying sponsors will certainly make things worse for them.

President Barack Obama realizes this is at best a controversial call, especially in states such as Virginia and North Carolina, where NASCAR is wildly popular. But a White House source who spoke on the condition of anonymity said that Obama only carried a couple of those states anyway, and then only by the thinnest of margins. The statement continues:

“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.”

Management at the Motorsports divisions of Chevrolet and Dodge are hoping that the move is only temporary, and they expect to resume racing in NASCAR as soon as they feel their corporations' obligation to the federal government has been paid in full.