Saleen in Serious Cash Troubles
The aftermarket tuner Saleen has found itself in rather dire financial straits. The company’s recent filings with the Securities and Exchange Commission show the company is hemorrhaging money faster than Donald Trump could make it. The official 10-Q Form shows the company only has $7,261 cash on hand.
And that’s not even the worst of it. The company has $5.6 million in liabilities it owes. It’s getting sued by a bank for non-payment of loans, it owes some $95,600 in legal fees, and it has $583,900 in unpaid payroll taxes. All of Saleen’s assets only total $668,629.
The numbers only continue to get worse. Year-over-year revenue is down by nearly half, between July and September 2014 – a three-month period – the company lost more than $2 million and its cash on hand dropped from $1.5 million to the measly $7,261 reported above.
Sadly, it’s hard to say that money went to worthwhile causes. Research and development costs – usually some of the largest expenditures for a car company – are only listed at $250,130 while some $443,767 was spent on sales and marketing costs such as auto shows and photography. Keep in mind Saleen’s current R&D includes juicing up the new 2015 Ford Mustang and the Tesla Model S; two projects that would likely be expensive.
While it’s tough to speculate, it seems the only real saving grace would be a car-loving benefactor who could swoop in, knock out debt and give sound business advice. Someone call Marcus Lemonis of The Profit.
Click past the jump to read more about Saleen’s latest problems.
Why it matters
While tuner cars aren’t everyone’s cup of tea, it’s hard to watch one of the notable names suffer such hardship. The company has produced some of the more interesting Mustang builds (like the one below) and is — or perhaps was — starting to tinker with the Tesla Model S. Hopefully the company can pull through and continue building great machines.
The Saleen 302 Mustang gets a host of upgrades, including a revised exterior look, upgraded interior bits, and of course engine modifications. Saleen offers different stages for customers. The first is the White Label with an additional 25 horsepower increase. The Yellow Label and Black Label increase the horses with it topping out at 650 with 565 pound-feet of torque. All that’s thanks to a supercharger, an ECU tune, and some other smaller tweaks.