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[NASCAR] Petty and DEI to merge?
by Sean Henshelwood
[NASCAR] Petty and DEI to merge?
Latest rumours from the US suggest that the two most famous names in NASCAR are looking to merge.
Petty Enterprises, the team of seven time NASCAR Champion Richard Petty has had one of its best seasons in recent years with former champion Bobby Labonte on-board. Despite this, 'the King' recently sold a fair percentage of his team to private equity firm Boston Ventures, with some rumour that it is this deal together with the current economic climate that has forced them to start looking at a merger in order to retain their rightful place in the sport.
Whilst there is confirmation from within the Petty organisation that they've started talks about a possible merger, they would not be drawn on the strong rumour that they have begun detailed discussions with Dale Earnhardt Inc about a partnership for 2009.
Like the Petty organisation, DEI are struggling to find replacement sponsors for 2009, with the news that the US ARMY will take its sponsorship elsewhere (Stewart-HAAS); long-time DEI supporter Menards have moved to Yates Racing (Ford), with Paul Menard, whilst Dale Earnhardt Juniors replacement in the #8 car, Mark Martin will join Jnr at Hendricks Motorsport for 2009.
The Petty organisation is doing its best to retain the services of Labonte, although they could find themselves under increased pressure with strong indications of a rift between Kyle Petty and the new team partners, suggesting that the #45 along with long-time sponsor Wells Fargo could be on the move.
Although quick to pick up on the possibility of a merger, one important stumbling block the media may have missed looks likely to stifle the deal; DEI's GM contract, and Petty Enterprises Dodge contract, something 'the King' is keen to follow through till contract end (2011).
Interestingly though there are also indications from the US that both GM and Dodge are in discussion about a merge at corporate level to combat the financial crisis that has hit the US market, and the constantly falling sales suffered by both marques..
We may not have heard the last of this..
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