Conversation: Max Siegel

In little more than six months, since he was named president of global operations for Dale Earnhardt Inc. by Teresa Earnhardt, Max Siegel has had an impact on the diversified racing and business conglomerate.

While the goal of renegotiating a deal that would keep lead driver Dale Earnhardt Jr. in a DEI Chevrolet was not achieved, Siegel has proven -- as a guy without a motorsports background -- that he can comfortably settle into his role and make things happen.

Some subjects remain unsettled, as in who'll replace Earnhardt in the current No. 8 Chevrolet team; the long-term status of its sponsor, Budweiser; and even if the car will continue as No. 8 beginning in 2008, when Junior moves to Hendrick Motorsports.

But it's a fact that the team's performance has improved across the board in recent weeks, with team leader-to-be Martin Truex Jr. scoring top-three finishes in four of the last five races; Earnhardt averaging a 10th place in the six races in which crew chief Tony Eury Jr. was suspended; and Paul Menard making three of the last four races since joining with new crew chief Dave Charpentier.

In a break before last weekend's Lenox Industrial Tools 300, Siegel sat down to discuss working with Teresa, the surprises and challenges of his first six months at DEI, an ideal timeframe for getting Junior's replacement driver in place and spending his first Fourth of July celebration in Daytona Beach, Fla.

Q: Max, what's been the biggest surprise in your first six months at DEI, when you look at what your expectations were coming into this position?

Max Siegel: This might surprise you, but the biggest surprise to me has been how open everyone is, to embrace me -- as a non-racing guy -- and to share information and to really be open about areas that we need help in.

What tends to happen is that, in order to be a good support for your organization, you really have to understand what the issues are -- and it takes a while to build the trust in people; it takes a while to get people comfortable enough to share information and figure out your intentions and that kind of stuff.

But everyone at the company has been very forthcoming and it's made it easier to make the transition.

Q: What's been the biggest challenge in that period?

Siegel: The media, and managing rumors. We've got 400 great people [at DEI] and a lot of people overlook the fact that the company is 25 years old.

With all the stuff that's been going on, our driver change and everything else, a lot of people like to focus on the negative. So just making sure you manage morale [is a key].

We've got a lot of pride in our company, and it's just like when you pick up the paper and you read something negative that people who don't have all the facts say about you, you can do one of two things: You can let it get you down, or you can be motivated.

Q: When you first came on board at DEI, one of the priorities was keeping Dale Jr. "in the family," so to speak, at DEI. If you look back, is there any regret about how that transpired, or are you more looking ahead?

Siegel: He's still an Earnhardt, and he'll always be a part of the family. So we are going to find ways to work together, which more people within the sport should do.

So, with that said, it was disappointing that we didn't get him re-signed to DEI.

But I'm focused on how we can have another 25 years of success, and maintain not just a healthy, but a productive working relationship with he and Kelley [Earnhardt Elledge, his sister and business manager].

Q: Are there any parallels in dealing with the media in the music industry, where you most recently were, and dealing with the motorsports media?

Siegel: There are a lot of parallels in the business. You manage a lot of moving parts, the talent -- which are the drivers, the athletes -- and it takes a lot of people to make a successful career in the entertainment business, much like it does here.

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But I think because, on a weekly basis everyone's in a close proximity in the garage area, there's a lot of the changing from team to team and the information carries [over] -- so there's a fascination with new and different stuff every single day, and that's a lot different.

Q: In your experience, what's the biggest thing that people don't know or understand about Teresa Earnhardt that they ought to?

Siegel: I think that it takes an incredible amount of strength, and also class to not react emotionally to things people say about you. It takes a unique person to not try to become something that you're not, or to fight back.

She's not one who's trying to steal the limelight, and she's very devoted to her employees and the company. A lot of people gloss over the fact that she grew up in racing, so while she's not turning wrenches, she knows the sport -- she's got 26 years worth of experience in it.

She's very determined and focused, and she's tough in business -- but I think if you are prepared, then she gives you a lot of autonomy.

Q: The company's performance, across the board has been on a nice upward curve, but particularly Martin Truex Jr.'s team; so has that been more a change in their luck, or has there been any shift in the organization's emphasis since Dale Jr. made the announcement he'd leave after this season?

Siegel: I think it's more the timing. I say all the time that was tangible validation of what we already knew as a company.

Again, we're constantly trying to improve and since I've been there -- and I know they've been doing it forever -- we've been trying to be systematic and deliberate and really take a comprehensive view of every area of the company, but especially competition, so there's a renewed emphasis.

When you're passionate, like the guys on our team are, they want to win every single week, and if you talk to anyone on the [No. 1] team, they'll probably tell you they got bad breaks.

Martin's been running good, from Daytona, where he led the race quite a bit, and had some unfortunate breaks.

Q: What's the latest update on the DEI / RCR engine program?

Siegel: We have a great strategic plan and we've already started working together, sharing information.

We are going to find a common facility, short-term, to put our research and development in. We're looking at both of the organizations over the next few months to look at production and assembly.

We've identified a spot, which we're not announcing now, where we're going to have a common engine facility of about 100,000 square feet; that we're going to have up by about late summer of '08, early '09.

Q: When do you plan to have the first collaborative DEI / RCR engine at the racetrack?

Siegel: I think that's going to be at Talladega [in October]. Richie Gilmore [DEI's vice president of motorsports] could tell you. And then I almost want to say our outside [hope] is to have a common engine by the Chase.

Q: What's your ideal timeframe for getting Dale Earnhardt Jr.'s replacement signed?

Siegel: Ideally we'd like to have things wrapped up by the end of July, because really that's everybody's magic date to start to plan for '08; to be able to maximize everything you want to do with both your commercial partners and your program.

Q: What's your anticipation of your first Fourth of July celebration at Daytona, and previously what would you consider your Fourth of July highlight?

Siegel: I'm going to combine both of those. My soon-to-be six-year-old's birthday is on the Fourth of July, so every year we spend time out on the lake where we're from. He still thinks the fireworks are for him -- which I love.

So I'm bringing my family, the kids, to Daytona. My oldest, who will be eight, his birthday is on the 15th, so we kind of have a celebration there. But I think to be able to do that and to have them experience the excitement of the sport takes that to a new level.

Q: Do you have any big special events -- anything new and different -- on the horizon around DEI?

Siegel: We've got a lot of stuff. I think that we are really adding some strong creative thinking professionals to our sales and marketing staff. We have some really innovative programs for our commercial sponsors, which we'll start to talk about in the next few weeks.

And then we're about to make a few announcements with some really great strategic partners that will make this sport more interesting, to a wider audience.

So we're going to do some really cool things in the sports / entertainment area as well.