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Detroit Grand Prix canceled for 2009

The Detroit Belle Isle Grand Prix is the latest casualty of the global economy in general and the Detroit region's struggles specifically, according to AutoWeek magazine.

Longtime CART and IndyCar Series team owner Roger Penske--who spearheads the event in his role as chairman of the Downtown Detroit Partnership--informed the Indy Racing League and American Le Mans Series that the race will not be held in 2009. Penske told AutoWeek that Audi's recent decision to effectively quit the ALMS in 2009, combined with Porsche pulling the plug on its factory RS Spyder prototype program--a program Penske's team ran--hurt the race, as did Detroit's poor economy overall.

"Obviously, it's something we're disappointed in, but as good businessmen we've got to make a call," he said. "We have the assets to continue on, but there's no reason at this point to have an event that wouldn't be first-class.

"This is a real economic time of distress for everyone and we couldn't sit here and count on a lot of things happening that we know weren't going to happen, especially knowing we live in such a distressed area with unemployment and all the other things going on.

"We had to make the decision."

The Grand Prix--scheduled for Sept. 4-6--returned to the city in 2007 to strong reviews after a six-year absence. Officials hope to resurrect the race as soon as possible.

Formula One cars first took to downtown Detroit's streets in 1982, racing annually in the Motor City until the event switched to the CART World Series in 1989. The race moved from the streets to the Belle Isle Park circuit in 1992, and continued as a CART weekend through 2001. The IndyCar Series and American Le Mans Series returned as a result of a coordinated effort to improve downtown Detroit, led by Penske and the Downtown Detroit Partnership, that also brought SuperBowl XL to town in 2006 and has invested in various projects aimed at improving the city.

The move reduces the 2009 IndyCar schedule to 17 races, and the ALMS schedule to 10.

Chrysler to slash budget but stay in NASCAR

Chrysler plans to slash its overall NASCAR budget by more than 30 percent in 2009, Dodge Motorsports director Mike Accavitti

You need to advertise your product. There's one way out of the situation we're in, and that's to sell your way out of it. It is a debt-spiral if we stop advertising and expect to sell any vehicles. It's a proven fact -- advertising sells vehicles. NASCAR is a form of advertising.

This reduction is due in part to the team-merger between Dale Earnhardt, Inc. and Chip Ganassi Racing, which removes Ganassi's former three-team Sprint Cup operation from the Dodge fold. (Earnhardt-Ganassi Racing will run Chevrolets.)

But Dodge will also cut back on at-track car displays, track sponsorships and promotions. It will, though, continue to support Penske Racing, Gillet Evernham Motorsports and Petty Enterprises as planned, Accavitti said.

"We'll definitely be on the track in 2009," Accavitti said in a phone interview.

Chrysler announced Wednesday it would, starting Friday, shut down all 30 US-based manufacturing plants for a month. Accavitti said that will have no bearing on any NASCAR relationship.

"First off, we had scheduled a [two-week] holiday shutdown, anyway. That part always finds its way out of the story," Accavitti said. "We're just extending that for a couple weeks. The reason is the general, overall softening of the automotive market.

"And we need to get our inventories in line with the selling rate out in the economy. Obviously, as a businessman you'd rather have your factories running over time than being shut down, but this is something we need to do to adjust our inventory levels.

"As far as NASCAR is concerned, the idling of the plants really doesn't have any direct effect on our NASCAR racing program."

Accavitti said Dodge evaluates return-on-investment annually "on every dime spent on NASCAR" to determine whether NASCAR should remain part of its advertising plan.

Some wonder how cash-strapped automakers can choose to spend on auto racing when the market is so poor. To date, Accavitti said NASCAR has helped move product. And, he continued, there is but one way out of the current abyss: sell more cars.

"You need to advertise your product. There's one way out of the situation we're in, and that's to sell your way out of it," Accavitti said. "It is a debt-spiral if we stop advertising and expect to sell any vehicles. It's a proven fact -- advertising sells vehicles. NASCAR is a form of advertising.

"We feel we have an appropriate spending effort in NASCAR. That's the important thing. We have things that people that buy Dodge cars and trucks are very passionate about. NASCAR is one of them. We sell a lot of trucks, a lot of minivans and a lot of Dodge Chargers to NASCAR fans."