Obama Orders Chevrolet and Dodge Out Of NASCAR

In a move sure to spark outrage, the White House announced today that GM and Chrysler must cease participation in NASCAR at the end of the 2009 season if they hope to receive any additional financial aid from the government. Companies around the globe—Honda and Audi, to name two—have drawn down racing operations, and NASCAR itself has already felt the pinch in the form of reduced team spending. A complete withdrawal from America’s premier racing series is expected to save more than $250 million between GM and Chrysler, a substantial amount considering the drastic measures being implemented elsewhere.

“Automakers used to operate on the principle of ‘win on Sunday, sell on Monday,’ but the Auto Task Force’s research just doesn’t validate that as true,” said the statement from President Obama.

Aaron wrote:They may save some money but they'll also lose very valuable R and D information, which may or may not be available in other venues regardless of cost.

Well, GM that is. Chrysler should have folded in 1979. Had there been one less auto maker, the auto industry likely wouldn't be in the situation they are. Another example of the damage done by government intervention.