AS SALES PLUNGE, GM DECREASES MOTORSPORTS SPONSORSHIPS

General Motors said on Tuesday, July 15, that it would reduce and consolidate its marketing and sales budget, including motorsports activity that would likely involve its sponsorship of NASCAR. GM has been involved with auto racing since the mid-1960s.

The automaker, whose stock dropped Monday to $9.38 -- its lowest in 50 years -- is seeking to boost liquidity by $15 billion through 2009 via cutbacks and job layoffs.

GM already started pulling back from some of its sports ties. In January, Cadillac opted out as a sponsor of the Masters golf tournament. GM also said it would not to renew its $1 billion sponsorship of the U.S. Olympic Committee when its contract ends after this year's games. And Chevrolet recently ended its primary sponsorship of the Richard Childress Racing team.

The predicted decrease in racing spend overall could account for 20 percent of an annual motorsports budget that was nearly $100 million. Peter DeLorenzo, a former auto ad executive and editor of the Autoextremist.com blog said that the NASCAR's "Cars of Tomorrow" initiative -- which GM took part in along with Chrysler, Ford and Toyota -- "reduced its brand recognition with the sport to the point that NASCAR is irrelevant."

And with truck sales plummeting for all brands, how long will the Craftsman Truck series be viable? GM has said they will reduce its truck production capacity by 300,000 units, double the number announced last month.

In addition to the cost-cutting measures already announced, GM will suspend its dividend for shareholders, sell off assets worth as much as $4 billion, lay off salaried workers and stop health-care benefits for salaried employees over 65. GM will also freeze salaries this year and next, halt 2008 executive bonuses, delay $1.7 billion in pension fund payment for unionized workers, and significantly reduce dealership inventories.  (Dorsey Patrick photo) [07/16/08]

CHEVY DAY AT THE BRICKYARD ON JULY 25

Chevy Day at the Brickyard will be a major highlight of fan-friendly activities set for opening day of the 15th annual Allstate 400 at the Brickyard. Headlining the event will be Team Chevy Impala SS drivers in the NASCAR Sprint Cup Series appearing live on stage as well several of the Bowtie stars meeting fans at autograph sessions scheduled throughout the morning.

The Chevrolet-sponsored event starts at 8 a.m. (ET) at various infield locations at the Indianapolis Motor Speedway (IMS) on Friday, July 25.

Admission to Chevy Day is included in the price of admission to the IMS grounds for the day’s Allstate 400 at the Brickyard activities. General admission tickets for Friday are $10 per person, free for children ages 5 and younger.

Chevrolet-sponsored NASCAR drivers appearing live on the Chevy stage located in the Hall of Fame Museum parking lot will participate in question-and-answer sessions with emcee, Riki Rachtman. Drivers expected to appear include Jimmie Johnson, Jeff Gordon, Kevin Harvick, Dale Earnhardt Jr. and many more.

Autograph sessions with Team Chevy members will take place in the Pagoda Plaza. [07/16/08]