Racin’ News: Germain Racing to Cut Back
In Racin’ News today:
Officials at Germain Racing, a long-time participant in the NASCAR Nationwide and Camping World Truck Series, said Thursday that they will be scaling back operations next season.
Part of the process will involved employee layoffs.
Germain said that the cause of the scale-back is over-expansion in 2011.
“We began this process two weeks ago, and it’s not a lot different than what we’ve been through in previous seasons heading into the off-season. We have been fortunate to sign a lot of our deals in December and some in January. Unfortunately, that saddles us with layoffs in November,” explained Mike Hillman Sr., general manager of Germain Racing. “This year, given the economy and the fact that several fellow race teams have previously announced their shut-downs, we gave our team members warning that they should be sure they are comfortable with their employment situation for the coming season. Today, we have formalized this process in compliance with North Carolina state law.”
The team grew from around 50 to more than 100 employees over the off-season between the Homestead season finale in 2010 to the Daytona season opener in 2011. The potential of pending layoffs puts the team in a situation where a large enough percentage of employees may need to be laid off that the state of North Carolina must be warned, as well as the employees of Germain Racing, LLC, based on the Worker Adjustment and Retraining Notification Act.
“Germain Racing will be in business in 2012 and beyond. Our long-time sponsor, GEICO, and partners such as Valvoline are looking ahead to being part of the Daytona 500 come February. We have enjoyed a tremendous growth year, and it has put us in the unenviable position of looking seriously at the possibility of downsizing our team. In the meantime, we will continue to work on securing sponsorship in order to pursue more NASCAR success in the future,” explained Hillman Sr.
In order to give our employees an opportunity to plan for the future and also to comply with the law and initiate government assistance that may be available to our employees, Germain Racing served official warning of potential layoffs on Thursday afternoon.
Tony Pedregon’s Funny Car will be wearing Nitro Fish colors in the Auto-Plus NHRA Nationals at Maple Grove Raceway near Reading, Pa., Friday through Sunday.
“It is good to be back here with Nitro Fish,” said Pedregon, a two-time Funny Car world champion. “We have been making progress with our car’s performance. We ran 4.13 (seconds) last weekend at Charlotte and we hope to improve on that here.
“It looks like we’ll have cool temperatures to run in. We hope to get the car to make its first run in 4.0-second range, and it appears we have the conditions to do that.”
Pedregon would like a repeat performance of the first time he raced in Kenny Koretsky’s Nitro Fish livery. “I was able to win the race,” he recalled. “I want to give something back to Kenny because he has been a big supporter of our team . . . and the best way to do that would be to deliver performance.”
Koretsky said he was “happy to welcome Tony back into the Nitro Fish colors. I hope his car runs good all weekend.”No Comment