November 12th, 2008 
T.C. By now I’m sure you’ve heard that another one of the worst kept secrets of 2008 has become a reality. Chip Ganassi Racing with Felix Sabates and Dale Earnhardt Inc. will merge for the 2009 season and become Earnhardt-Ganassi Racing with Felix Sabates. The four car team will feature Juan Pablo Montoya, Martin Truex, Aric Almirola, and a yet unnamed fourth driver for the Cup Series. The team will also have at least one full time Nationwide Series car with driver Bryan Clauson and sponsor Fastenal.
The team did not release any other details today, saying the rest would come in future announcements.
From what we are hearing, Ganassi’s relationship with Dodge will end, and CGR will be let out of their remaining contract with the troubled automaker. They will switch to Chevrolet to align with DEI.
Look for the new EGR to be run out of Ganassi’s shop in Concord as its large enough for four Cup teams and a little more modern then DEI’s Mooresville locations.
As we heard today, as many as 110 DEI employees were laid off and there will probably be more to come. DEI must trim down their workforce to prepare for the merge. And while I believe most of the cuts will come from the DEI side, we understand that Ganassi will be releasing some employees as well.
In terms of leadership, I would expect the main CGR execs and leadership to remain. Current CGR President Steve Lauletta is in charge of not only the NASCAR shop, but the Grand Am and Indy car teams as well. Because of this, I don’t see Chip making any changes there. What this means for the current DEI chiefs remains to be seen. Executives like Max Siegel and John Story may be reassigned or given their outright release.
Over the next couple of weeks more of these details will be ironed out, and the EGR picture will start to come into focus for 2009. Now that it’s a done deal, what do you think? Is Dale Sr. rolling over in his grave? Was this the right move for both parties? What do you think we can expect from this organization for 2009 and beyond? Let us hear it!
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I guess the next step will involve partnering w/ a stick-n-ball owner (ie Gillette or Fenway group). Maybe the Kannapolis Intimidators or Toledo Mudhens-Ganassi-Earnhardt-Sabates-bla-bla-bla-racing.
If we could only turn back the clock (calendar) to Alan Kulwicki’s Championship year as an “independant” owner, engineer, mechanic and driver. That was the end of an era!
Wow, this merger is a bit different than most. I understand the why of the situation, but the release of mostly DEI employees suprises me. DEI and CGR are not super teams by any means, the move the GM for CGR is a huge positive for CGR, the additional sponsorship for DEI is a positive. The most positive move they could make would be to releae Felix, the mouth pice needs to go. With the 8 team pit crew going to SHR the lay offs won’t be a bad. I only wonder who is putting the most cash into the partnerhip, and who will have controling interest. Now what will we call the engine program? CEGS Engines?Wow
This kind of smells of desperation. They have combined to form a four car team with two and half sponsors and three drivers, that doesn’t sound like a recipe for success.
You asked…
“Is Dale Sr. rolling over in his grave?”
…uh… YEAH.
So DEI “merges” (read buys the owners points) with Ginn last year.
Less then a year latter they merge again…..
I feel bad for the guys and gals in the shop getting kicked
Strange days.
ERLANGER, KENTUCKY, (October 24, 2008) —Max Siegel, President of Global Operations for Dale Earnhardt Inc., one of NASCAR’s premier racing teams, will be they keynote breakfast speaker at Toyota Motor Engineering & Manufacturing North America’s (TEMA) Opportunity Exchange (OE) on Tuesday, November 11th from 7:30 – 9 a.m. at the Duke Energy Center in Downtown Cincinnati.
http://www.toyotageorgetown.com/detailnews.asp?PRID=295
Kasey: I’m not sure what you are pointing out here… The fact that Max Siegel is making an appearance for Toyota?
I’m so sorry, but I am on the floor laughing! Not the vision that Dale Sr. had for his company for sure. The Queen of Mean has outdone herself!
This merger reeks of desperation. It does nothing for either team’s driver or sponsorship problems. Martin Truex and Bass Pro Shops are almost certainly leaving after 2009, so they’re left with only one full-time sponsor after next year.
With all the rumors and stories about Dodge right now (pulling out of the Truck Series, GEM and Robby Gordon looking at Toyota, and now this), they’re probably pulling out of Cup. This at least provides Ganassi with a foot in the door at Chevy.
As for DEI, I don’t see what they get out of it. The Wrigley’s sponsorship? With them laying off so many people, I’m willing to bet that Teresa has finally had enough, and without John Menard’s money, she’s had to find another buyer. Too bad she didn’t swallow her pride and sell to Junior when she could have.
And Dale Sr. isn’t just rolling; he’s spinning in his grave.
Well, I guess DEI’s merger with Ginn last year did not get the job done.
So DEI’s #01 and #15 teams are going to be shut down? I guess RCR’s #33 will end up with one of those teams’ points for 2009?
Will Regan Smith get the #41 Target ride, or is he on the street?
Where is the sponsorship for Amirola’s #8 (whole season) and Montoya’s #42 (half-season) coming from?
Is this “a merger of equals”, or is Ganassi looking for an escape from NASCAR and may retreat to the comfort of his IRL and sports car teams?
Lots of loose ends here.
JT: Yes, the 01 and 15 teams are gone for next season. I don’t know what the plan is in terms of the owners points for those teams for 2009.
Regan Smith is on the list for the fourth car at the new EGR, but I’ve heard other names floated including Scott Riggs.
Sponsorship for the 8 and 42 still hasn’t been secured. Stay tuned for an announcement.
It’s not a merger of equals from what I know. One party is definitely looking to keep distancing themself from the sport, but it isn’t Chip Ganassi. Look for Teresa Earnhardt to have an even smaller role in the new organization.
The problem with DEI for the last several years seems to be that Teresa seems more interested in keeping Dale Sr.’s name and image out there than in running the team.
I understand her point of view, I loved Dale Sr., I cried like a baby when Max Helton said he was gone. It seems to me however the best way to honor the greatest driver Nascar has ever seen would have been to keep the team he built as strong as it was when he died.
I know alot of that success was his name and management style. That 1000 stare of his could cut right through a person and make them question a decision in a heartbeat. He commanded respect, and he had earned the right to do so.
I will never understand how the most successful owner in the history of Indy racing could be so bad in Nascar, many have forgotten he was the original owner to merge, long before the latest craze. Ganassi racing merged with Sabatas racing. It did not get them far.
This is to funny,all JR wanted was 51% and the biotch wouldn’t give it up now she gives up a portion to a fool that ran a championship caliber team into the ground (don’t forget Sterling had the championship won had he not got hurt) Oh wait she also ran a championship caliber team into the ground I mean it had to be Mikey even stole a few wins.AHHH a match made in heaven.Now it can be an even bigger museum HA HA. Now repeat after me 49% and all the Budweiser money I could handle.HA HA HA HA GREAT JOB MRS.EARNHARDT
T.C. – thanks for the updates.
Sorry to hear about all of the good people losing their jobs as a result of this.
With CGR dropping off the Dodge program, does Ernie Elliott’s Dodge engine shop have any more major NASCAR customers left?
Teresa should rot in H*ll for ruining DEI. She never cared about racing, even when Dale Sr. was alive. Is this just a racing deal, and DEI will continue on with its own merchandising program for Dale Sr.’s legacy? And if that’s the case, she should’ve given that up to her **FAMILY** last year!!
I loved Dale Sr. and admired both his driving and his business talents/skills, but his taste in women sure leaves a lot to be desired!
Sure is easy to call someone you have only seen on TV a biotch. Equally as easy to wish that a public personality rot in h*ll. How about putting yourself in her shoes? Teresa is just as human as anyone else. With sponsorship money drying up, the entire NASCAR industry is being forced to downsize. Teresa personally addressed her employees being laid off and she was not some cold hearted monster. Heart broken and sad was more like it. Did you know that everyone laid off will continue to be paid and have medical coverage to the end of the year? She didn’t have to do that, but she did. Sure doesn’t sound like a monster to me. Have you ever really tried to put yourself in her shoes? Have you lost the love of your life in a tragic accident? Have you had to struggle and work to look out for 100s of people depending on you for their livelihood and make decisions effecting their lives? I think Teresa has tried really hard and has had to put up with a lot of unmerited slander and ridicule time and time again. If Dale Sr is rolling in his grave, it is because of how so many people are insulting the woman he loved. In his shoes wouldn’t you do the same? Do you love your spouse more than your job or a company or a sport? Don’t you think He loves her more than all those other things? Lets all try to be a little more human before assuming the worst. After all if your life was made public knowledge, would we all see you as a saint?
T.C., is the financial situation so bad for these teams that they have to lay everyone off so close to Christmas? What do you hear about the severance packages? This must be good for Stewart-Haas to have so many Chevy team workers out there on the job market. Stewart-Haas can cherry-pick now, or even pick up several small groups of crew who have worked together.
What is the general employment situation in the Greater Charlotte area?
Terrific reporting, my friend.
Pacific Time Zone Kenny
Alameda, California
JSS,
Your sentiment is touching, but I have little sympathy for a woman who put herself at the right hand one of the most popular, and certainly one of the most shrewd, businessmen in racing and then turned his company into what seemingly was her own cult of personality. Yes, her personal loss was tragic, and her initial response was phenomenally professional and inspiring. She helped Dale Sr. build this company, but he maintained the bottom line of decision-making. The further removed from his passing, the more erratic Teresa’s decisions seemed to become: she hired Siegel not just for racing, but moreso to move the company further into pop culture. She cut ties with loyal employees who questioned her judgment. And most importantly, when her stepchildren asked for a larger stake in their father’s business, and for more power over the racing decisions, she said “no.” She NEVER dealt with the racing side of things on a daily basis, but when Kelley and Dale Jr., who do racing 24/7, ask for a stronger hand in the business, she sends them away?? And the HUGE sponsorship money they command — the lifeblood of any NASCAR organization?? Please. I have lost all sympathy for this millionaire…
Kenny: In terms of running a business, these teams can’t be affected by holidays. It is unfortunate that guys lose their jobs at this point in the year, but with the way the season is, it just happens to turn out this way.
In terms of severance, each team will handle things differently. Some will and some won’t. It certainly will help if an employee had a contract with the team, but there is no rule that says these teams must pay severance packages.
I think if you are a team like Stewart-Haas who is in the position to maybe make some hires, there will definitely be some good people out there looking. Don’t forget, even though SHR might be hiring, they are also letting people go. Stewart and his people will most definitely be cleaning that place out.
And I think the employment outlook for Charlotte and surrounding is probably much the same as it is anywhere else. Charlotte is a major banking center, and the financial crisis we find ourselves in certainly has hurt the area. Wachovia and Bank of America are the two major players here and cuts have certainly happened with more to come.
Doesn”t that just eat you up . With all you talk that DEI is dead. I LOVE IT the Trease showed you wrong one more time.
#4 kaoscapt
on Nov 12th, 2008 at 8:16 pm
You asked…
“Is Dale Sr. rolling over in his grave?”
…uh… YEAH.
YES SO JR AND HIS SISTER CAN KISS IS B U T T
Lets see…
The 1 car and 8 car move to the Chip Ganassi Racing shops for 2009 and remain Chevrolets, with CGR switching to Chevy for the 41 and 42…
110 loyal DEI employees are laid off…
The 01 and 15 cars cease to exist for 2009…
…and Dale Earnhardt Incorporated’s “Garagemahal” sits unused and vacant. Or worse, as a museum – a testament to ‘what could have been’.
Sounds like the dismantling of a race team to me…
Do you (Anna) or anyone else truly believe that THIS is what Dale Sr. would want for his company? HELL NO.
If Dale Sr. hadn’t wanted Jr. to race for him, he’d have told him to get his own ride. He built DEI for his FAMILY. That includes Kerry, Kelley and Dale Jr., not just Teresa and Taylor. He would never have wanted to merge with anyone else (except maybe RCR or Andy Petree’s team) without having control of the company in the end. And that is precisely what DEI has given up with this merger.
I am not a Dale Sr. fan, but I respected his abilities and business savvy. I watched with great interest the start of DEI (because I was and always will be a Steve Park fan) and enjoyed the success they had. Watching Jr. grow, win the Busch Championship and move to cup was so cool. That was Dale Sr’s dream.
Not a merger with Chip Ganassi.
In this type of merger that happens to the driver development programs? I rememer from being at Loudon this fall DEI had 3 cars in the Camping World East series. Would those drivers and teams be part of the merger as well or just cut lose?
I seem to recall that when Mr. Siegel came aboard he said that they were looking at creating a DEI record label. Emphasizing gospel & blues, just like Dale Sr. would have wanted (insert sarcasm here). What’s up with that now?
I heard on Sirius today a great new name for Earnhardt-Ganassi Racing…… Chip & Dale’s Racing. This is perfect for the mess that has become of DEI.
DEI last year merged with a team called Gen Racing what has happened with the owner and what dose he think of the one team he brought to DEi going away just for Teresa to bring on a nother team that sucks, it is not right the right thing to do if Ganassi wants to merg with a team he shoud merg with petty who was trying to merg with dei as well and Ganassi and petty bothe drive Dodge
Mike,
Bobby Ginn was very happy to walk away after merging his multi-car team (01 Martin & Smith, 13 Nemechek, & 14 Marlin) into DEI. The points from the 14 car were given to the 15 of Paul Menard, and the 13 ceased to exist.
Bobby Ginn has returned to the world of creating and managing time share resorts. This is where he should have stayed in the first place. He has no say in the day to day operation of DEI. The only reason his name remained as owner on the 01 car was to maintain it’s standing in the owners points.
Many rumors floated around after the Ginn/DEI merger about Ginn not paying his employees. If I remember correctly, both Joe Nemechek and Sterling Marlin sued Ginn to receive the pay that they were owed at the time of the sale. To his credit, he did settle his accounts with them (I believe).
As for what Bobby Ginn thinks of the DEI/Ganassi merger, I’m sure he doesn’t give a damn.
It is all economics. Economic cycle is repeating. Does anyone remember the gas rashing days and the number of laps being cut at Daytona? The fact is that NASCAR has developed into a very expensive, very costly, and very technical sport. The Chevy, Ford, & Dodge means much less with the COT. NASCAR is looking more like F1 from a cost point. The teams that can afford to raise the big money will continue to win. Personally, I think the 2008 season was boaring when 3 drivers win a total of 24 races. Attendance is down, sponsors are going away and something has to change. Look at the names of really good drivers had zero wins as well as those who had two or less wins. Ask youself this question, How would Jimmy and Carl have finsihed had they been on the smallest and least funded team. TEAM is everything. As far as Dale Senior goes being the great competitor that he was, I think he would do anything to win.
i think this merger will be good for both parties. i hate that people are losing their jobs in this tough time. after seeing truex grab the pole for daytona is a sign of many great things to come
yeah just to greedy and to stupid to let people run dei that actually new what to do instead of just sitting around saying i am the person who runs dei.
So lets see that is 200 people who have either left or gone somewhere else. I think if she would have turned over the company to the kids it would have never had to merger with anyone.
I am sure it the name could have been earnhardt-stewart and probably gordon would have joined but nooooooooooooo. I was say what i feel about this has been winston cup girl. I guess that is done know and there is only the name and no shop