CONCORD, N.C.—Richard Petty’s race team has been absorbed in a merger, but Petty’s name and the car number he made famous are still around. The new team created by the merger of Petty Enterprises with Gillett Evernham Motorsports has been renamed Richard Petty Motorsports (RPM), capitalizing on the seven-time champion’s marketability.

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.

ARCHDALE, N.C.—Former NASCAR champion Bobby Labonte said Tuesday he is disappointed equity firm Boston Ventures couldn’t do more for Petty Enterprises. Labonte, who voided his four-year contract extension last week, will explore the free-agent market instead of waiting to see if Petty can complete a merger with Gillett Evernham Motorsports.

NEW YORK—Petty Enterprises is in discussions to merge its storied franchise with Gillett Evernham Motorsports, The Associated Press has learned. Multiple people familiar with the talks told the AP Thursday that the two teams were discussing a deal that would merge Petty’s famed No. 43 Dodge with GEM to become a four-car operation. They requested anonymity because the negotiations are ongoing.