As was reported earlier today by Jayski, Chip Ganassi Racing with Felix Sabates has officially shut down the #40 Cup team for the season and has laid off 71 employees. A lack of sponsorship is ultimately to blame for the team’s demise. From what I’m hearing, the layoffs include the entire #40 team, and effect every department at CGR from the body shop to sponsorship. Apparently CGR’s Managing Director John Fernandez is also among those who were laid off.
Ganassi’s struggles this season have been a topic of conversation among many, and we have written about them on several occasions. We were the first to report on Jimmy Elledge’s replacement, Brian Pattie and we spoke about their sponsorship and management woes (See The Trouble with Ganassi).
There is no word yet on whether or not Dario Franchitti will continue driving the #40 Fastenal Dodge in the Nationwide Series.
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on Jul 1st, 2008 at 7:32 pm
That’s rough, man. I feel for Dario, but you guys bring up an excellent point about all the other employees that it puts out of work. This dang economy … just rough.
on Jul 1st, 2008 at 11:10 pm
I dont feel to bad for Dario, He’s made his money and he will not be losing his home, or having his power turned off over the possible loss of a ride.
The ones I feel for are the 71 men and woman that lost there jobs today. Those are the ones who put in the 40+ hours a week into making that team and company what it was. Those are the people who are the ones who will be worried about how there going to pay their bills and continue to feed their families. Yes I’m sure many made very good money, but I know their are many who are just like most of us who need a paycheck to keep the lights on.
With the current and future economic times I hope these 71 people can find jobs at other teams. My gut tells me this is not going to be the last team to close their doors this year or next. There are many teams that have questionable futures as they are currently without sponsors or do not have anything lined up for next year. #00, #01, #22, #28, #38, #44. Then you have teams like #21, #66, #70, #96 that are currently struggling and next year is not looking much better for them.
on Jul 3rd, 2008 at 1:00 pm
It must be bad if Ganassi can’t get sponsorship for the 40 for Daytona, one of the most high-profile races of the season. And yes, Todd, I too am thinking of the 71. Thank you for reminding me.
Kenny
Alameda, California
on Jul 3rd, 2008 at 1:13 pm
I agree that I feel “more” badly for the 71 employees than I do for Dario, but it sounds like you think that just because Dario’s been fortunate to “make it” in this world that it’s okay for bad things to happen to him.
on Jul 3rd, 2008 at 2:15 pm
Tim, I dont think that because Dario has made it, that it is ok for bad things to happen to him. I personally like him as a driver. What I am saying is that 71 people got laid off. I do not know if there was any severance pay given to these people, but I do know because Chip said in his statement that Ganassi will uphold Dario’s contract. They were also offering him a job in the Nationwide or Grand Am Series if he so chooses. And those are words from Chips mouth. Its in the transcript. So Dario will get paid if he’s sitting in a race car or in a rocking chair.
on Jul 7th, 2008 at 12:52 am
Today (July 6) Jayski reported that more cuts are coming at Ganassi. He also gave details on the firings, which came from other teams as well as the 40, and some members of the 40 were integrated into the other teams. The firings included some long-term employees of SABCO before Ganassi bought it. Here’s a story from the Jacksonville paper. Apparently some of the fired employees didn’t take it very calmly; Ganassi had to call in 12 police officers to control the situation. Here’s a link to a story from Jacksonville.com.
Kenny
Alameda, California