Saleen Might Not be Around for Much Longer
Saleen is one of those names within the muscle car industry that carries quite a bit of weight. It’s a name held among the ranks of Roush, Yenko or Yates. It’s a titan in the Mustang enthusiast community; however, that doesn’t seem to be translating into enough money to ensure the company’s viability. Otherwise put, Saleen is broke, and is possibly going out of business … again.
The company recently filed its quarterly earnings report with the SEC. It makes for a terrible read. As of Sept. 30th, the company only had $7,261 left in the bank. Additionally, it’s once again looking for a buyer. It also owes the bank, its lawyers and its contractors quite a lot of money.
In 2007, the company forced out its founder, Steve Saleen, after he pushed the company into its first bankruptcy. Then in 2012, he returned to his position. However, the few years off doesn’t seem to have helped. According to the report, Saleen’s issues are numerous, and most likely are going to cost the business everything it has.
First off, Saleen’s total assets only come to $668,629. That includes the cash on hand, what it has in terms of purchases, and its inventory, which includes the cars it holds. Finally, the company owes a whopping $5,634,841 to everyone from the bank to unpaid payroll.
It’s now unclear if we will actually see either the souped-up Tesla FourSixteen or the new Saleen Mustang of which the company debuted both earlier this year.
It’s hard to imagine Saleen being strapped for cash when all of the company’s products cost so much. I myself was astounded by how much they were asking for a Stage 3 Mustang and how little that actually got you. On the other hand, maybe that’s where the company went wrong. Maybe the prices of its cars are too much with not enough people scooping them up.
With all the costs, all the loans and all of the extensions the company keeps filing and then missing, Saleen Automotive might not be long for this world.
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