Saleen Automotive Seeking Buyer

[Saleen Forums News]

IRVINE, CA -- November 7, 2008 -- SOEC/Saleen Forums News -- Automotive News reported today that specialty car builder Saleen Automotive is seeking a buyer. The company has experienced trying times in an industry segment that has seen slow sales due to high gas prices and tougher financing.

"The [HPA] board has set a tentative timetable to receive preliminary indications of interest from prospective parties over the next two months and plans on finalizing a transaction in early 2009," reports Automotive News.

Saleen Automotive has suffered from internal struggles in recent years. While founder Steve Saleen and other partners continue to own a substantial interest in the company, controlling interest was sold to investment group Hancock Park Associates in 2004 as part of the cash infusion needed to expand facilities for the Ford GT program. There was a surprisingly high turnover of their own CEOs who were brought from within the firm, but from outside the industry. Reportedly heads butted over the years, and eventually Steve Saleen left the company in May of 2007 with several key engineers. The three Saleen children, Clint, Sean and Molly, left just a few months later. Saleen's wife Liz left the company in 2006.

Saleen Automotive's CEO Paul Wilbur left in August of 2008, followed shortly by its General Manager Marques McCammon -- both from ASC -- and both ended up in a green car company in San Diego County. September saw additional departures of upper management as well as throughout the ranks as vehicle production stalled.

The sale of the company may be a tough order in these challenging times, as auto sales in general are slowed as financing is tight. Paint and partial assembly of the Dodge Viper are done at Saleen Automotive, but the uncertain future of that program complicates matters as Chrysler LLC considers selling that Dodge brand.

Saleen Automotive had been operated in California for nearly 25 years, but all production had been moved to Michigan in 2007.


SOEC, founded in 1991, is the premiere organization for Saleen owners and enthusiasts, with thousands of members worldwide. Visit http://www.soec.org for more information.

[olecoot]

Well that sucks!

[TPSMak]

I wonder if Steve is interested in buying it back....

[awayne]

This will be interesting to see what happens with this. I have told a few what I think so we will see what really comes down. I wonder what they want for the company???

[Dave]

Does ASC go with Saleen Automotive? Or is Hancock Park keeping ASC?

[awayne]

They are owned by the same but I would say they do not go together in the sale.

[Meikol02]

Well that is not something I wanted to hear. I am glad most of my warranty items got handled.

[Bruce]

This could be a good thing if the right people or company buy Saleen. Hancock doesn't seem to be willing to support Saleen through its tough times so a new owner may be in Saleen's best interest.

[ultamax]

So I guess the garage sale was either a foreshadowing event, or someone was erroneously articulating the scenario (yes, it means what u think it means). While they weren't fibbing about 'going out of business' they may have been thinking 'going up for sale' under their breath.

All corporate dancing aside, would this include Speedlab, or are they still good-to-go? It's the parts we'll need more than certified dealerships as our cars age.

...and I agree with Bruce, it could be a good thing if the right entity or individual buys them.

[olecoot]

Originally Posted by ultamax

So I guess the garage sale was either a foreshadowing event, or someone was erroneously articulating the scenario (yes, it means what u think it means). While they weren't fibbing about 'going out of business' they may have been thinking 'going up for sale' under their breath.

All corporate dancing aside, would this include Speedlab, or are they still good-to-go? It's the parts we'll need more than certified dealerships as our cars age.

This would be a good question for the VP don't you think?

[awayne]

They have been foreshadowing everything for a while now IMO. We are not all dumb and know that most companies out there are having issues especially if you are in a nitch market Like Saleen, Roush, etc.

[Meikol02]

Originally Posted by awayne

They have been foreshadowing everything for a while now IMO. We are not all dumb and know that most companies out there are having issues especially if you are in a nitch market Like Saleen, Roush, etc.

Some of the dealers here are pulling the Roush products as well. Saleen dealers dried up first, it is not surprising the wider nitche market is following suite. I talked to a dealer this weekend that claimed the higher insurance costs for flooring the cars is driving the move away from the high performance specialty cars. It just makes the slower market for the cars more difficult as they tend to sit longer than the higher volume Ford GT's.

[awayne]

Originally Posted by Meikol02

Some of the dealers here are pulling the Roush products as well. Saleen dealers dried up first, it is not surprising the wider nitche market is following suite. I talked to a dealer this weekend that claimed the higher insurance costs for flooring the cars is driving the move away from the high performance specialty cars. It just makes the slower market for the cars more difficult as they tend to sit longer than the higher volume Ford GT's.

Oh, I believe it. Dealers don't want to have too much inventory right now with the way the economy is and even some banks are cutting the floorplan amounts for some dealers. Too many dealers going BK right now.

I know of about 5 dealers that went out by me that were all through the same bank and each of them were for atleast $2.5 million each. And this was atleast 1-2 years before all of this mess we are in currently.

[Bruce]

There was an article somewhere (Internet / WSJ) that said by 2010 25% of all dealerships regardless of brand will be gone. I found that to be an amazing stat.

[XEVIOUS]

unfortunate, but it is possible for companies to vanish and re-emerge.
if saleen does go under, it leaves all of its owners with classic cars.

The blame really goes beyond the financial crisis.
US auto manufactures made the same Exact mistakes they made in the 70's/80'/s under the same circumstances. THEY MADE TO MANNY GAUDY LANDYAHTS!. back then it was oversized gas guzzling caddies lincolns and chevys, these days its was suvs. the fact is, US manu. laid a blind eye to manufacturing advances developed everywhere but here. complacent to please the US market with size instead of quality.
And gearing there demographics for 50 year olds and higher.
stupid moves by old outa touch execs. the factorys were outa date. re-tooling ment shutting factories down. but Had they Evolved with the european and japanese quality standards, it would be a whole different story. We all purchased saleens because they were better renditions of fords product. But to be honest FORD shouldve been makeing the mustang at saleens level. and theres no excuse. the bottom line is american car manufacturing was not worth the money. you could get Alot better for your dollar elsewhere. Just think companies like hundia were crap when they first arived, Now they make cars far better than any US manu. And still cheaper!. All this is bad for the american worker. i feel your us, but until we start making things the right way, this will always happen. Saleen, itself although makeing great cars, Lacked horribly in customer aid and support. leaving its buyers waiting for MONTHS for parts. Being lied to over the phone. and even worst. Honesty is key for a small volume manufacture, especially like saleen.
I hope it stays afloat. i enjoy my car. and know its a valued classic.
But i hope lessons are learned. but unfortunately seems this is a scenerio that happens time and time again.

put your money on enticing the young NOT the old. becuase the Young will dream of owning and come of age quickly, while the old will want but few will be commited, having more wisdom to spend wisely than the young whom spend to enjoy there youth. Easy to understand why dont the US auto exects. (oh letme guess, there old and outa touch)

[olecoot]

Originally Posted by XEVIOUS

unfortunate, but it is possible for companies to vanish and re-emerge.
if saleen does go under, it leaves all of its owners with classic cars.

The blame really goes beyond the financial crisis.
US auto manufactures made the same Exact mistakes they made in the 70's/80'/s under the same circumstances. THEY MADE TO MANNY GAUDY LANDYAHTS!. back then it was oversized gas guzzling caddies lincolns and chevys, these days its was suvs. the fact is, US manu. laid a blind eye to manufacturing advances developed everywhere but here. complacent to please the US market with size instead of quality.
And gearing there demographics for 50 year olds and higher.
stupid moves by old outa touch execs. the factorys were outa date. re-tooling ment shutting factories down. but Had they Evolved with the european and japanese quality standards, it would be a whole different story. We all purchased saleens because they were better renditions of fords product. But to be honest FORD shouldve been makeing the mustang at saleens level. and theres no excuse. the bottom line is american car manufacturing was not worth the money. you could get Alot better for your dollar elsewhere. Just think companies like hundia were crap when they first arived, Now they make cars far better than any US manu. And still cheaper!. All this is bad for the american worker. i feel your us, but until we start making things the right way, this will always happen. Saleen, itself although makeing great cars, Lacked horribly in customer aid and support. leaving its buyers waiting for MONTHS for parts. Being lied to over the phone. and even worst. Honesty is key for a small volume manufacture, especially like saleen.
I hope it stays afloat. i enjoy my car. and know its a valued classic.
But i hope lessons are learned. but unfortunately seems this is a scenerio that happens time and time again.

put your money on enticing the young NOT the old. becuase the Young will dream of owning and come of age quickly, while the old will want but few will be commited, having more wisdom to spend wisely than the young whom spend to enjoy there youth. Easy to understand why dont the US auto exects. (oh letme guess, there old and outa touch)

Dude ... Lighten up! You sound like you're still mad at your old man!

Although some of the things you say may be true about customer service and quality, Saleen's troubles stem from lack of capital and interest in the specialty car industry. Also one of the biggest issues that face the US auto industry is the ability to afford the concessions made to the UAW. If you want to solve the issue look there. Many of the non-US companies are non-union .... but that is another thread.

As for the old timers, I would bet that most of those on this board are what you would consider "old". We're the ones with the disposable income that affords us the luxury to buy the "toys" that we drive.

"Old" saying .... To become old and wise you first must be young and stupid.

'Coot

[Stanghungry]

I had a feeling something was coming with the company. I have almost 2 years left on my warranty. I could be screwed is that what folks are saying?

I sure hope not.

[Meikol02]

Another good question for the VP.

[awayne]

He won't know since really who knows what will actually happen. If no buyer and the go BK, then there is nothing that can be done. I don't think that will be the case but only time will tell.

[SimiSaleen]

Hopefully Steve will be back in the future

[Dave]

Enjoy the holiday's. Save the worry for after the New Year.

[02saleen]

it would suck if the company did go under but our cars would become classics...especially later down the road like the Yenko Camaros of the late 60s

[awayne]

Well don't think that your Saleen is going to be worth something in the millions 40 years down the road like the Yenko Camaro... They only built about about 370 Yenko Camaro's from 1967-1969 and there are a heck of a lot more Saleens produced in one year then that.

Cars from back in the 60's like camaro, corvette, mustang are nothing like what we have today. I mean look at all the people that had to hae the Chrysler PT Cruizer when it first came out and paid $5-10,000 over sticker for them. A friend of mine had one forsale over the summer and sold it for $3500.00.... Not $35,000, $3500.00 and it was in almost perfect condition.... Atleast he is a dealer so its not like he had actually bought it new.

Cars from back in the 60's were just bought and driven not thinking that someday, they would be worth BIG money. These days people think that because of that, the current special cars are going to be worth BIG money down the line. Now, there will be some cars from this day in age that will but the ones that you know that will be worth BIG money are the ones with ultra low production like Enzo, F40, F50 cars like that which are already woth more then the original MSRP.

Do I want to see Saleen to go under, not really. But with the way everything is going right now, there are really not going to have a line of investors lining up to purchase the company in todays market.

[Rogun]

Well, if they stop producing the S331 sport truck, there hasn't been a very large amount of those made. But its hard to predict the future. I hope Saleen doesn't go under, but who would want to buy a company that isn't selling cars?

[Dave]

Going with Wayne stated, they made Saleen vehicles in a pretty good dose. What you might end-up witnessing, after the economy rebounds, are callout vehicles within the production years become more sought after.

If you look at the early market, the niche within a niche, pushed models like the SA-10, 1990-93 SCs, Escort Team Cars, Coors Trucks, documented R cars, internal vehicles, and low mileage mint specimens to another level. Maybe.

The 1985-86 cars are kinda' dragging and well as standard production, used aero models.

Indiana has most of what one would want in a four-eyed car; minus a few '86 convertibles.

The Tempos, SporTrucks, GT Sports and XPs, Foci will probably continue to fall as curiosities.

It seemed like there was a run on 1992-93 factory Supercharged cars, but was the push from a large body or a small entity?

From my vantage point, you need outside interest, or new interest to shove the vehicles onto a new plateau. The Ford/Mustang collector who might have ignored the Saleens, the import collector and/or the collector from a Brand-X domestic make. In addition to, maybe, the person who dreamed of owning a particular Saleen model for a number of years that can now throw the funds toward it.

The niche within a niche can drive collectability; it can help focus what models to watch, but the niche can only push the prices so high.

If we go with Internet buzz over the past 3-years; auctions and listings for well-used '85-'86 models use to catch fire on the messageboards proclaiming how "you won’t be able to find these at x,xxx price again"… a percentage of the buzz created by those who own these models. The trashed Damerow Coupe caught a buzz for coupes. Since that car, better examples have been listed with less chatter. SA-10 #5 and alias "Sleeper, FloFit" posting the sale price most everywhere probably pushed the ball forward electronically/publically to document what a FOX Saleen can pull to the right person.

I need to stay focused.

The neat thing about Saleen Mustangs; there's a quantity of cars out there and diverse generations of vehicles models that appeal differently to enthusiasts.

You can find perceived loyalists in each generation. Early FOX, late FOX, S351, SN-95, S197 for the various eras. Then place the Tempo, Ranger, Explorer, Foci, and F150 owners into the mix… it's a diverse party beneath one umbrella.

Not to reminisce, but one neat thing with Atco… for those that attended… was seeing the number of youths with SN-95 S281s. Apparently this is a model that spoke to an age bracket. Either with value, performance, styling or heritage, but it talks to a group. If you take that group, add 10, 15, 20 years to them… they might want the factory custom paint cars from this era, Supercharged cars, Extremes, or to find a twin of the former ride.

How I looked at the SSC on the cover of Hot Rod in 1989 is not terribly different to how others were affected during the various generations. It's easy to forget.

I don't really know what I typed.

As for the company; when I was a kid, to me they produced… like the working-mans Porsche. An attainable, legitimate performance car. Has what you need, not what you don’t.

Granted, they're just remanufactured Mustangs, but they've impacted thousands of people and it would be sad to close the book.

Anyway… With the lowcost conversion of Racecraft Branded vehicles this could be the series to pull the company forward with a new buyer and buy time to design a serialized Saleen version. The 2010 Mustang is early. New money can use the rest of 2009 to figure this out… while dealers sell the 2007, 2008, 2009 models.

Good thread!

[uneedav8]

I wish I could buy them. I would go back to the grass roots like when they were building cars in long beach. When Steve, Jimmy and Joe were much more involved in the process. In my opinion, they seems to stray a bit as more cars were being built. Luckly, they never failed to keep people like us so interested in the Saleen thanks to Phil Frank's designs. So I am assuming that chances of us seeing a 2010 Saleen is pretty slim. I hope they pull through and the company ends up in good hands. I still remember what it felt like seeing my first white 84 hatchback with the blues stripes as a kid. I'd hate to see this all end.

[ultamax]

Originally Posted by uneedav8

I wish I could buy them...I still remember what it felt like seeing my first white 84 hatchback with the blues stripes as a kid. I'd hate to see this all end.

You and me both buddy! The local dentist had that same model, and me and my best pal used to stare the stripes off that bad boy.

Think of it this way though - it's better to have been part of history than to just read about it!