Merle was born into one of American open-wheel racing's most storied dynasties. His father, Tony Bettenhausen, was a multiple USAC champion who died in a practice accident at Indianapolis in 1961. His brothers Gary Bettenhausen and Tony Bettenhausen Jr. also became professional racing drivers, making the family one of the few in American motorsport history where three sons of a champion all competed at national level.
Bettenhausen began his racing career in 1964 running street stocks at the track in Tinley Park, Illinois. His sprint car debut came in 1968 at the Iowa State Fairgrounds, where he crashed out of the consolation race. Later that same year he recorded his first significant result, winning a USAC midget car race at Indianapolis Raceway Park.
His USAC Championship Car career proved both brief and tragic. In 1972 he attempted to qualify for the Indianapolis 500 but crashed during practice and failed to make the field. On July 16, 1972, three laps into his first Champ Car race on pavement at Michigan International Speedway, Bettenhausen tangled with Mike Hiss and was launched into the outside wall. The car caught fire and Bettenhausen attempted to climb free while it was still moving. In doing so his right arm became trapped between the car and the barrier and was torn off.
The loss of his right arm did not end Bettenhausen's driving career. He adapted by using a prosthetic arm fitted with a hook appendage that allowed him to grip the steering wheel and continued to compete in USAC dirt events, focusing primarily on midget cars. In the 1973 USAC midget season he finished 16th in the championship standings and recorded one win — a remarkable achievement for any driver, let alone one racing with a prosthetic limb.
Bettenhausen raced on until July 1974, when he announced his retirement. He cited two reasons: the recent birth of his daughter, and a severe crash suffered by his older brother Gary that had crushed Gary's left arm and left it nearly paralyzed. The parallel misfortunes of two brothers within such a short span brought a definitive end to Merle's time behind the wheel.
After retiring from driving, Bettenhausen remained connected to motorsport through several roles. He started a business supplying fuel and tires to dirt tracks across the United States. He later joined his brother Tony Jr.'s CART team, Bettenhausen Racing, in a support capacity. He eventually transitioned into the retail automobile business and settled in Indianapolis.
He was survived by his son Ryan Bettenhausen and daughter Tracy Jennings.
Bettenhausen suffered a stroke in early April 2026 and died on April 29, 2026, at the age of 82.
Merle Bettenhausen occupies a singular place in American racing history as a driver who not only continued competing after losing a limb in a racing accident, but actually recorded victories while doing so. His story reflects both the extreme dangers of open-wheel racing in the early 1970s and the extraordinary determination characteristic of the Bettenhausen family across multiple generations.