Emporia’s Elliott Sadler will remain in the No. 19 Dodge of Gillett Evernham Motorsports. The announcement comes nearly two weeks after Sadler had been dropped by GEM in favor of A.J. Allmendinger. Sadler, who hasn’t won a Sprint Cup event since 2004, threatened to file suit against the organization for breach of contract. He signed a two-year contract extension last year.

CHARLOTTE, N.C.—Petty Enterprises has reached a merger agreement with Gillett Evernham Motorsports, creating a four-car stock car racing team that will ensure the Petty racing team’s storied No. 43 competes in NASCAR Sprint Cup events in 2009. However, the merger marks the end of the Petty team as a stand-alone operation. Several sources have indicated many of the struggling team’s remaining employees will be laid off at the completion of the merger.

STATESVILLE, N.C.—Gillett Evernham Motorsports will lay off about 65 employees in several departments as part of scaling back its Nationwide Series program next season. The No. 9 Dodge will run a partial schedule in the second-tier NASCAR series in 2009. The team will continue to field at least three Sprint Cup Series teams—for Kasey Kahne, Elliott Sadler and Reed Sorenson—and is in talks with Petty Enterprises to merge with that organization and house its famed No. 43.