The ugly underside of a NASCAR merger ... 'sellout'
Ginn announces layoffs in wake of consolidation with DEI
By David Caraviello, NASCAR.COM
It all came down to a list. General manager Jay Frye walked onto the floor of the shop just after 4 p.m. on Tuesday, surrounded by people who until a few days earlier had built cars for Ginn Racing. He told the group how sorry he was, how they had tried so hard to make it work. Frye, an affable bear of a man who had been with the team since its days as MB2 Motorsports, didn't come up with the list. But he had the unenviable task of reading it.
So he did. If your name was on it, you were to report to work the next day. If your name wasn't on it, there was no longer a job to report to.
The fabricator's name was never called. He doesn't want to give away his identity -- understandable, since now he has to look for another job in the industry -- but it really doesn't matter. He was one of the many laid off after Bobby Ginn's team merged with Dale Earnhardt Inc., among the faceless NASCAR foot-soldiers caught in a big-money squeeze. About 70 employees, according to sources, were put out of work. Virtually all of them were people who had previously worked for the Ginn organization.
"They can call this a merger all they want," said the fabricator, whose account was confirmed by other sources. "This wasn't a merger. It was a buyout. A sellout."
The fabricator had already survived one round of layoffs, enacted a few weeks ago when Ginn, unable to find sponsorship for two of its three Nextel Cup cars, cut back its workforce and eliminated its Busch program as part of a restructuring program. But five days before the race at Indianapolis Motor Speedway, Frye told his employees that the team was merging with DEI, and to expect some changes in personnel. One day later those same people met with DEI executives Steve Hmiel, John Story and Richie Gilmore, who warned them that cuts were coming.
DEI driver Dale Earnhardt Jr. could see that much. "The hard part about it is, they've got 700 employees now and they've got to get down to about 400," he said two days after the merger was announced. "In Mooresville, 300 people are going to be losing their jobs, and that's the tough part about it."
And Tuesday the hammer fell on people who only a few months earlier had been celebrating a surprise runner-up finish in the Daytona 500 and were excited over their new, big-money owner. Ginn, a Florida developer, hired new employees, bought new airplanes and a seven-post shaker rig, made a play to sign Earnhardt Jr. and laid out an ambitious five-year plan. It never happened. Welcome to the ugly underside of a NASCAR merger, where beyond the smiling, hopeful executives and the four-car team are people who have had their careers abruptly derailed, and families who are suddenly depending on severance pay.
The fabricator doesn't blame DEI, which didn't return telephone calls seeking comment. His animosity is reserved for Ginn, who has a history of overextending himself. Just ask all those people left holding the bag when his plans to develop Hilton Head Island, S.C., went bust so many years ago. Then as now, he made big promises, made big plans, and left a trail of disappointment in his wake.
"It was a surprise. I'm not going to lie. It's been a pretty crazy week. It's been stressful as hell," the fabricator said. "I'm just glad it's over with so I don't have to worry about it anymore. It's not really DEI's fault. Bobby Ginn is a sellout. He had this so-called five-year plan that didn't even last a year."
Now the fabricator is left to find another job, which won't be easy. Teams aren't likely to hire new people this late in the season, so he estimates that it might be four to five months before he's working again. At least one other struggling organization has also let some people go, so he expects to be one of about 200 people sending out resumes and hoping to latch on somewhere for 2008.
That's if he stays in the business. On the subject of NASCAR, this entire episode has left him jaded and cynical.
"Not a day went by when I didn't enjoy my job," he said. "But after dealing with this kind of stuff, and the stress level, I probably won't stick around. It's all about big business and big money. Us little guys, we're worthless in their eyes."
The opinions expressed are solely of the writer.
Ginn announces layoffs in wake of consolidation with DEI
By David Caraviello, NASCAR.COM
It all came down to a list. General manager Jay Frye walked onto the floor of the shop just after 4 p.m. on Tuesday, surrounded by people who until a few days earlier had built cars for Ginn Racing. He told the group how sorry he was, how they had tried so hard to make it work. Frye, an affable bear of a man who had been with the team since its days as MB2 Motorsports, didn't come up with the list. But he had the unenviable task of reading it.
So he did. If your name was on it, you were to report to work the next day. If your name wasn't on it, there was no longer a job to report to.
The fabricator's name was never called. He doesn't want to give away his identity -- understandable, since now he has to look for another job in the industry -- but it really doesn't matter. He was one of the many laid off after Bobby Ginn's team merged with Dale Earnhardt Inc., among the faceless NASCAR foot-soldiers caught in a big-money squeeze. About 70 employees, according to sources, were put out of work. Virtually all of them were people who had previously worked for the Ginn organization.
"They can call this a merger all they want," said the fabricator, whose account was confirmed by other sources. "This wasn't a merger. It was a buyout. A sellout."
The fabricator had already survived one round of layoffs, enacted a few weeks ago when Ginn, unable to find sponsorship for two of its three Nextel Cup cars, cut back its workforce and eliminated its Busch program as part of a restructuring program. But five days before the race at Indianapolis Motor Speedway, Frye told his employees that the team was merging with DEI, and to expect some changes in personnel. One day later those same people met with DEI executives Steve Hmiel, John Story and Richie Gilmore, who warned them that cuts were coming.
DEI driver Dale Earnhardt Jr. could see that much. "The hard part about it is, they've got 700 employees now and they've got to get down to about 400," he said two days after the merger was announced. "In Mooresville, 300 people are going to be losing their jobs, and that's the tough part about it."
And Tuesday the hammer fell on people who only a few months earlier had been celebrating a surprise runner-up finish in the Daytona 500 and were excited over their new, big-money owner. Ginn, a Florida developer, hired new employees, bought new airplanes and a seven-post shaker rig, made a play to sign Earnhardt Jr. and laid out an ambitious five-year plan. It never happened. Welcome to the ugly underside of a NASCAR merger, where beyond the smiling, hopeful executives and the four-car team are people who have had their careers abruptly derailed, and families who are suddenly depending on severance pay.
The fabricator doesn't blame DEI, which didn't return telephone calls seeking comment. His animosity is reserved for Ginn, who has a history of overextending himself. Just ask all those people left holding the bag when his plans to develop Hilton Head Island, S.C., went bust so many years ago. Then as now, he made big promises, made big plans, and left a trail of disappointment in his wake.
"It was a surprise. I'm not going to lie. It's been a pretty crazy week. It's been stressful as hell," the fabricator said. "I'm just glad it's over with so I don't have to worry about it anymore. It's not really DEI's fault. Bobby Ginn is a sellout. He had this so-called five-year plan that didn't even last a year."
Now the fabricator is left to find another job, which won't be easy. Teams aren't likely to hire new people this late in the season, so he estimates that it might be four to five months before he's working again. At least one other struggling organization has also let some people go, so he expects to be one of about 200 people sending out resumes and hoping to latch on somewhere for 2008.
That's if he stays in the business. On the subject of NASCAR, this entire episode has left him jaded and cynical.
"Not a day went by when I didn't enjoy my job," he said. "But after dealing with this kind of stuff, and the stress level, I probably won't stick around. It's all about big business and big money. Us little guys, we're worthless in their eyes."
The opinions expressed are solely of the writer.
