Saleen Is Under Fire And Is Being Sued. Is This The End?

For a full list of Saleen Mustangs available, visit Saleen Automotive Inc.'s website here.

It’s unfortunate to see Saleen Automotive Inc. in a financial hole, as the company is well-known amongst enthusiasts for crafting some well-rounded, badass Mustangs.

Nearly a year ago, we shared that Saleen Automotive Inc. had negotiated a $10-million-dollar deal with a new investor that allowed the company the capital to build and deliver up to one Black Label Saleen Mustang per $1-million-dollars.

But it seems as if the unstable financial rollercoaster hasn’t come to a stop yet for Saleen. In fact, things have only become worse for Steve and his company, with two separate Ford dealerships (one out of Texas, and the other out of Tennessee) suing his company, alleging fraud and breach of contract.

Saleen has tuned various versions of the Ford Mustang hallmarking all the way back until the late '80s.

Saleen has tuned various versions of the Ford Mustang, hallmarking all the way back until the late ’80s.

According to Automotive News (AN), the aforementioned pair of large Ford dealerships across the nation are pretty upset with Saleen, having filed a lawsuit against the company. One of the Ford dealerships, which is Red McCombs Ford out of San Antonio, Texas, claims they paid Saleen in advance to modify three Mustangs for them to sell. Ostensibly, Saleen not only delivered the vehicles six months late, but reportedly more than $22,000 in upgrades were missing upon its deliveries.

AN also reported that the dealership has yet to receive a refund for the missing equipment, and even had to pay for the extra months of floor-plan expenses; which could amount to half of what Saleen exclaimed they started with at the beginning of the financial year (a total of $60,850 according to the same post).

One of the pinnacle's of Saleen performance was the S302E Mustang, which utilized a supercharged and modified version of the 4.6-liter 3-valve SOHC V8 found in the Mustang GT.

One of the pinnacle’s of Saleen performance was the S302E Mustang, which utilized a supercharged and modified version of the 4.6-liter 3-valve SOHC V8 found in the Mustang GT.

Not too far from Texas, another dealership out of Bristol, Tennessee, named Friendship Ford told AN that they’ve been waiting for a ‘Yellow Label’ Saleen Mustang for nearly a year. The Mustang has been located at Saleen’s main headquarters in Corona, California, since September of last year, with Saleen saying its vendors they use are to blame for the extended delay.

Saleen even told AN that the alleged Mustang on order “was shipped in early June.” Yet the general manager of Friendship Ford said, they’re still waiting.

From mild to wild, Saleen can outfit your own Saleen Mustang the way you want it.

“I don’t know where the car is. I don’t have a clue,” Denny Fruth, general manager for Friendship Ford 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.”

It’s a crazy situation to see a nostalgic icon like Saleen in such a tough situation, both legally and financially. Albeit Steve says the company will be able to make a comeback, due to the nameplate and strong sales. We hope to see the tides turn for Steve and his company soon, as we’d hate to see the once great Mustang tuner become a thing of the past.

About the author

Harrison Noble

Living in San Diego for most of his life, Harrison was exposed to a variety of cars at an early age. His passion for anything that is fast, or has a V8, brought him to Power Automedia.
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