Saleen's reports indicate financial struggles
According to a report from Automotive News, trouble is brewing over at Saleen Automotive. Saleen, reportedly struggling from sizeable debt, has allegedly been unable to deliver vehicles both completed and on time.
AN says the allegations stem from a group of Ford dealerships spurned by Saleen’s inability to deliver a completed car within a reasonable time set forth by contractual obligations. Red McCombs Ford in San Antonio claims Saleen delivered three 2015 Ford Mustangs six months late, with $22,000 USD in commissioned upgrades missing.
A dealer in Bristol, Tenn., ran into similar problems, with its 2015 “Yellow Label” Saleen Mustang still unaccounted for, over a year after the Mustang was due on the showroom floor. According to the dealership, there have been no updates from Saleen regarding the status of the car. “I don’t know where the car is. I don’t have a clue,” Denny Fruth, Friendship Ford’s general manager told AN. “Every month this year, it’s been another story. I actually thought about jumping on an airplane to L.A. and walking in the shop to see if it’s in there.”
Company founder Steve Saleen isn’t as pessimistic. According to the renowned Mustang modifier, these delays are a result of the “unbelievable” demand for the new cars. Saleen told AN “hundreds” of his Mustangs have already been delivered to customers.
AN reports a closer look at the company’s finances might tell a different tale. Since the relaunch of the company in 2011, Saleen Automotive has lost $30 million USD, returning a quarterly profit only once back in 2014. Saleen reported assets of $745,755 USD, with liabilities topping $11.4 million USD at the end of 2015, with a posted revenue of $3.8 million USD and a loss of $11.1 million USD, according to AN.
“There’s a reason why there aren’t a lot of companies like us that do this, but for us to have been doing it every model year as long as we have, we must be doing something correctly,” Saleen told AN. “Year over year, we have been improving. As with any company, we continue to need capital.”
Source: Automotive News (Subscription required)