DEI and Petty merger?

"DEI and Petty merger? Talks about a possible merger between Dale Earnhardt Inc. and Petty Enterprises are under way, according to sources familiar with the situation, and Wells Fargo's sponsorship money could be key to making something happen. However, the economic chaos that is wracking the country is also playing havoc with so many suddenly struggling NASCAR teams that it's unclear how any of the various scenarios might actually play out. And just what positives might even come out of a DEI-Petty merger aren't that clear, either. Richard Petty sold a "significant" stake this summer in Petty Enterprises, the family racing operation in business since 1949, to Boston Ventures, a private equity firm. Precisely how that joint NASCAR venture might fit into any DEI-Petty merger is unclear, considering the financial problems of many Wall Street investment firms. Petty Enterprises is looking for a 2009 sponsor for Bobby Labonte, who drives the legendary #43 car. #45-Kyle Petty, the other Petty driver, has been at odds apparently with some of the team's executives, and he appears to have the option to take the Wells Fargo sponsorship with him to another team. If Kyle Petty were to leave, that would, for the moment, leave Petty Enterprises with no major sponsors.(Winston Salem Journal)(10-17-2008)"

http://www2.journalnow.com/content/2008/oct/17/dei-is-talking-to-pe...

Did not see this coming. Someone must have got to Richard to convince him that DODGE may not be around next year. If the King abandons ship... message to Robby... follow the rats! LOL!

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Permalink Reply by Mike/WC77 on October 17, 2008 at 10:44am

Can't see it happening. Petty won't jump ship from Dodge, Dodge won't let Petty go without a fight. BTW, it wouldn't be the King jumping ship either, it would be the investors looking for the performance the RCR cars have been delivering.
As for following the rats, screw that. PE going to Chevy would leave Roger, Chip,& Robby as the only Dodge teams (givem GEM does switch to Yota). Again, if Kyle is leaving,& taking a partial schedule from WF with him, put him in that seat fly's been talkin about. There's a driver, with a sponsor, who happens to have name Dodge is interested in keeping.
Not to mention, a driver who doesn't appear to want a full schedule. Oh,& there's the angle of the press that would follow a Petty driving an RGM car. Plus the airtime that Petty would give his team mate when he's up in the booth. Wait, ya I'm not done, Robby,& maybe Menards doing anything with Victory Juction Gang is gold for PR...which attracts other potential sponsors.
Screw the rats!

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Permalink Reply by Keith on October 17, 2008 at 11:20am

Funny, but nobody on either side of the Ganassi or Petty camp denied what Mulhern wrote last week about them having discussions.

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Permalink Reply by Keith on October 17, 2008 at 11:18am

Mike,
You are assuming that DODGE will be around next year.

I said it before in the AUTOEXTREMIST post...The local UAW is very concerned about the CHRYSLER situation.
Based on what I'm hearing here locally... it's no longer a question of if, but when CERBERUS disposes of CHRYSLER. All scenarios that are out there are not favorable for the DODGE brand's existence much less participation in NASCAR.

I'll eat crow if I'm wrong, but I'm going on record here and saying DODGE will be gone from NASCAR as early as next year. And quite honestly, I hope I'm wrong.

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Permalink Reply by Mike/WC77 on October 17, 2008 at 11:32am

Your 100% correct Keith, everything I posted is based on Dodge still being involved in the sport. I hope your wrong too man. Nascar losing Dodge would be bad for competition. Dodge leaving Nascar would be bad for brand marketing. Furthermore, would be one more nail, in the coffin for Dodge.

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Permalink Reply by Lance on October 17, 2008 at 5:42pm

Seriously man. I know that things are bad but don't go by what the auto extremist said. He's been hoping for Nascar's demise for YEARS. I said the same exact thing 2 years ago about chevy. His sentiment was that GM was threatening a pull out if Toyota was allowed to compete.Obviously that didn't happen. Read around. GM taking on Dodge may be the least likely thing to happen. It's more likely that the Nissan-Renualt group buy Dodge. They are desperate for a U.S.-North American partner and they already have some deals in the works with Dodge. I beleive that Dodge is making the new Nissan Titan. Fiat is also interested. GM doesn't have the money to make that kind of deal right now. Read the articles I posted on the site under the heading "more info on future of Chrysler."

Maybe the UAW guy is worried because there is a good chance Dodge becomes a foreign brand.

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Permalink Reply by WJM on October 17, 2008 at 11:57am

The have-nots are looking for dance partners like it's the eve of the senior prom. DEI, Ganassi, Petty, et al. We've all heard the drill about 4-car teams as being the most sure way to being competitive, but I think we'll see more 3-car teams in the future as sponsorship continues to dry up. I'm not too concerned about Penske, he's a very smart man and most certainly has his finger on the trigger to execute Plan B.

The situation with Chrysler does not look good. Cerberus wants out of the car biz, but I think they'll have to walk through fire to get a Renault-Nissan deal past the Feds.

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Permalink Reply by Lance on October 17, 2008 at 5:43pm

This seems silly. Ganassi and Petty would make more sense.

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Permalink Reply by Lance on October 18, 2008 at 12:06am

One more tidbit. Robbie Loomis said today that he was happy with Dodge, that they had a three year contract with Dodge and intend to fulfill that contract.