Hendrick Automotive Group Chairman Rick Hendrick avoided layoffs during the 2020 economic shutdown by paying his entire workforce 80% of their salaries, a decision that created a lasting culture of loyalty across his racing and automotive operations.
At the time, the company employed over 10,000 people across 95 dealerships in 13 states, generating roughly $10 billion in revenue and selling 219,000 vehicles.
Hendrick explained that the decision came after California initiated corporate closures, forcing businesses nationwide to cut costs during a period when 20 million American jobs disappeared in April alone.
“Actually, it was a Friday night and I went home and Linda and I were talking and it happened first in California.
They shut down California first and I said, ‘I just cannot think of laying people off. I’m going to pay them as long as I can.’
So, we paid everybody 80% and we kept everybody together. Didn’t lay anybody off,” Hendrick said on the Cars and Culture with Jason Stein podcast.
The executive admitted that maintaining the massive payroll through months of uncertainty caused personal stress despite his billionaire status.
“I had some sleepless nights, I won’t lie,” Hendrick told Forbes. “But we kept our people working and had one of our best years ever.”
Employees still express gratitude during site visits. “And to this day, when I walk through the dealership, I have teammates that say, ‘Thank you.
You saved my house. You saved my family,’” Hendrick said.
He attributed his leadership philosophy to values learned growing up on a family tobacco farm, where mutual aid was essential.
“I grew up on a farm, and you had to count on your neighbors. So, you couldn’t do everything yourself.
My mom and dad taught me that,” he said.
The retention approach also extended to corporate sponsors, creating long-term NASCAR partnerships.
Axalta first signed as primary sponsor for the No. 24 Chevrolet under the DuPont brand in November 1992 and recently extended its commitment through 2027.
“They took a chance on us nearly three decades ago, and it’s been an incredible relationship ever since,” Hendrick said.
Longtime driver Jeff Gordon joined Hendrick Motorsports for the final race of the 1992 season, became an equity partner in October 1999, and later transitioned to vice chairman and co-owner.
“In many ways, it’s my home and the people here are my family,” Gordon said.
Modern drivers also benefit from stable backing.
NAPA signed as Chase Elliott’s primary sponsor in 2014, with a multi-year majority sponsorship confirmed at the NAPA EXPO in Las Vegas.
“None of this is possible without NAPA,” Elliott said.
Uniform supplier UniFirst will enter its 11th year of partnership with Hendrick Motorsports in 2026, marking its fifth year as a primary sponsor for the No. 9 car.
