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Siegel hopeful DEI can rebound in a tough economy
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Published: October 14, 2008
SOUTH BOSTON, Va.
Hope lives on this week for 25 promising young diversity drivers who will have an intensive two-day workout at South Boston Speedway under the scrutiny of NASCAR executives and team owners, with 14 full-time driving "scholarships" for the 2009 minor-league racing at stake.
The story in the garage, however, is Max Siegel's. Not because he's one of the highest-ranking blacks in NASCAR racing, as the head of Dale Earnhardt Inc., but because DEI is the hot story at the moment.
Siegel, Bobby Hutchens and John Story are trying to hold DEI together, rebuild it and find solid sponsorships for 2009 in a dismal economic climate.
Siegel heard the rumors that swirled through the Lowe's Motor Speedway garage last weekend, including the one that DEI was on the verge of laying off 80 employees after losing Paul Menard and the John Menard and U.S. Army sponsorships.
But Siegel -- who is at South Boston Speedway because DEI has a major investment in NASCAR's Camping World East development series, a testing ground for drivers and for equipment -- says he's doing his best to put together the sponsorship deals to keep DEI running smoothly.
"Since I've been with DEI, we've had to deal with perception issues," said Siegel, a two-year veteran with the operation. "But we've got great people and great facilities.
"Right now, today, it is an interesting dynamic. If you look at the company and our infrastructure and the people who have been there a long time, and look at how our cars have been running, we have made some impressive gains.
"Last year people were killing us about our engines, so we've made a concerted effort to focus on our joint engine venture (with fellow owner Richard Childress). And there has definitely been improvement."
Siegel admits that losing Paul Menard was a blow, but said: "We've all rolled up our sleeves.
"We're running four team cars ‘til the end of the year (with Martin Truex Jr., Regan Smith, Aric Almirola and Menard). And our intent is to run four cars again next year … but we are going to be fiscally responsible.
"So right now any of the deals that are out there, we're trying to put those together. And we're wide-open as to how we can sustain a healthy race program. We have some very resilient people … but it's the end of the year, and everyone is on pins and needles, trying to figure out what the future may bring."
Cutting 80 people? Siegel says he heard the rumors.
"That's not our intent, but I was hearing it, too," he said. "Over the last two years, we've done some things and made some investments to strengthen our racing program. Sure, people tend to speculate when you see a sponsor leave."
And rivals are not above creating such speculation in order to pluck off key employees.
"My heart goes out to all 400 of our employees who work so hard every week," Siegel said. "And I am doing the best I can to sustain a level of confidence in our company and reassure everyone that we are doing everything we can to keep it healthy.
"And we have no imminent plans to lay off any people or shut down any of our race teams.
"And I do tell our people that we're not in this position alone. The way the economy is and the way the sport is right now, unfortunately a lot of us are in the same position."
Over in the Jack Roush camp, where sponsorships seem to flourish, the game is championship, and this weekend, the game goes to Martinsville Speedway.
Carl Edwards, 168 points down to Jimmie Johnson, now appears out of the title chase. And development driver Ricky Stenhouse is still fuming about Sunday's crashed-filled ARCA finale, in which yet another run-in with archrival Scott Speed cost both men a shot at that title.
But when it comes to hard luck, Roush's Matt Kenseth might have the best case. And he's not looking forward to Martinsville:
"Martinsville is a track I usually dread," Kenseth said. "Martinsville reminds me of racing around two light poles in some mall parking lot. There's very little room to race. It's slow and just real tight quarters. There's nothing fun about that to me.
"But it's a stop we make twice a year, and I am going to focus on getting the best finish I can. We had a good showing there last fall."
Still Martinsville is hardly a good place to stop a skid like Kenseth is on. "The race at Charlotte was one of many horrible weekends we've had this year," he said. "It has been tough for us over the past several weeks, borderline miserable for sure. There have been a couple of bright spots, but even when things go right they go wrong.
"If it all lines up and something happens and we can win a race or two here before the end of the season, that would be great."
Chip Bolin, Kenseth's crew chief, new at that slot this year, after years as his engineer, is also a bit depressed with the run of misfortune.
"For the majority of the season, I feel like we take two steps forward and three steps back," Bolin said. "It's a feast-or-famine season.
"With just five races remaining, I'd like to see our luck change and end the season on a high note. But sometimes the outcome is out of our control. So we'll just continue trying to give Matt competitive cars and do our best to salvage something."
■ Mike Mulhern can be reached at mmulhern@wsjournal.com.
Racing for rides
NASCAR has 25 young diversity drivers at South Boston Speedway this week, competing for 14 "racing scholarships" for next season. Four of the test "winners" will get full rides in NASCAR's Camping World East tour, and 10 others will get full rides in another NASCAR weekly racing series.
The drivers in contention are: Mackena Bell; Kristen Bumbera; Michael Cherry; Tiffany Daniels; Phil Dugan; Mike Gallegos; Cassie Gannis; Jonathan Gomez; Katie Hagar; Paul Harraka; Laura Hayes; Rebecca Kasten; Kortney Kosiski; Ashlee Lancaster; Amanda Lynch; Ruben Pardo; Juan Pitta; Megan Reitenour; Jason Romero; Natalie Sather; Caitlin Shaw; Jonathan Smith; Emily Sue Steck; Trista Stevenson; Jessica Wood
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