NEW YORK — NASCAR chairman Brian France has lobbied the U..S. Congress to support a financial rescue plan for the struggling Big Three automakers Chrysler, Ford and General Motors.
The trio, which participate in NASCAR, are pleading with Congress for a bailout to prevent their companies from going bankrupt.
“I’m writing you as a concerned American who wants what is best for our general country,” France wrote. “Of course, the domestic automobile manufacturers play a very important part of the heritage of NASCAR, but more importantly, it is vital for all of America.”
The letter, a copy of which was obtained on Saturday by The Associated Press, was addressed to senators Harry Reid, Mitch McConnell, Chris Dodd, chairman of the Senate Banking, Housing and Urban Affairs Committee, and Richard Shelby. It was dated Tuesday.
France’s letter warned that if the auto industry fails, 3 million people would lose their jobs in the first year, and another 2.5 million over the following two years. He said personal income in the U.S. would drop by $150 billion (120 billion euros) in the first year and domestic automobile production — even by foreign manufacturers — would likely drop to zero.
“For these manufacturers to survive, your assistance is urgently needed,” France wrote. “By immediately supporting America’s automobile industry, you can help our nation avoid a devastating economic blow.
“We urge the (Bush) Administration and Congress to support the bridge loan package under deliberation. As unattractive as the idea of corporate federal bailouts can be to many Americans, including me, there appears to be no alternative. Federal aid is in the best interest of the entire country.”
Although France said last month that NASCAR could survive a manufacturer pullback or pullout, teams throughout the industry are deeply concerned about the stability of the Big Three. Toyota, the only foreign manufacturer that participates in NASCAR, has also seen slumping sales but was on more solid financial footing than the American automakers.
Any sort of pullback by the manufacturers would cripple many race teams, particularly because sponsorship is extremely difficult to find during the economic crisis. Many teams have been forced to release employees, and some are reconsidering their 2009 plans.
On Saturday, the storied Wood Brothers organization said it will scale its program back to just 12 races for next season. Petty Enterprises was in talks to merge with Gillett-Evernham Motorsports, and Chip Ganassi Racing and Dale Earnhardt Inc. announced a partnership late last month.
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