Huge losses expected for GM, will NASCAR be affected?
The company is spending billions more than it's making amid the worst economic crisis in decades and struggling to obtain financing because of its sub-investment grade, or junk, bond status.
The chief executives from GM and Ford, as well as Chrysler LLC, were lobbying legislators in Washington, D.C., on Thursday trying to impress upon them the need for federal aid.
GM has said recently that factory production needs to reflect declining sales, which typically means job cuts.
The automaker is reportedly planning to announce factory closures, although it is likely to cut production by eliminating shifts, overtime bans or temporary plant shutdowns.
GM also is expected to slow its product development schedule, delaying some models and engines at least for a short time.
GM's sales in the United States are down 20.3 percent this year and the automaker has lost approximately $70 billion since 2004 so how can they justify a NASCAR program given the fact it has not helped them to improve sales whatsoever. In fact of all the manufacturers in NASCAR, GM has the worse losses despite winning in NASCAR. Of course getting beat by Toyota in the Truck and Nationwide Series championship and Kyle Busch's Cup car has trounced the Chevys on a regular basis, has resulted in the GM product looking inferior which, may if anything, be driving sales even lower than they might already be. Once the bean counters realize this, they may deep six their NASCAR program completely.