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NASCAR CEO France says organization will try to cut costs

Mon. November 10, 2008; Posted: 03:05 AM
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Nov 10, 2008 (The Kansas City Star - McClatchy-Tribune Information Services via COMTEX) -- GM | Quote | Chart | News | PowerRating -- AVONDALE, Ariz. -- With the subject of the national economy in general, and the situation facing the auto industry specifically, dominating the recent news, NASCAR chairman and CEO Brian France made an unscheduled stop Sunday in Phoenix.

France's message was that the organizations would do all they could to keep NASCAR and its competitors healthy, but that the ability to do so was limited.

He said that NASCAR will get very aggressive in attempts to contain costs for teams, but, France said, there will be no bailout of struggling teams.

"The idea that we can have a safety net for everybody that is in our industry, I wish we could, but it's just not practical," France said.

Asked about the specifics of getting aggressive in containing costs, France mentioned decreasing testing and continued work with the Car of Tomorrow.

The big topic in the garages at Phoenix this week has been the announcement by General Motors that it may run out of cash next year and that could lead to bankruptcy.

France said that in recent weeks, he and NASCAR president Mike Helton have met with the heads of the auto-making companies.

He said the subject of bankruptcy for one or more of the "Big Three" automakers was not brought up.

Asked if he thought Ford, General Motors and Chrysler would all survive the current crisis, France said, "We hope they will. We don't know."

But, he said, "We're not going to live or die if one manufacturer or another has to pull back or pull out."

France was asked whether NASCAR would be open to allowing new manufacturers into the sport. France said NASCAR is open to other car-makers and that it has already had talks with some.

But, he said, economics may cause other car makers to wait until the crisis eases before they decide to enter NASCAR.

France said NASCAR has survived tough times before and will survive these.

To see more of The Kansas City Star, or to subscribe to the newspaper, go to http://www.kansascity.com. Copyright (c) 2008, The Kansas City Star, Mo. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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