Saleen Automotive circling the drain
11/10/08 Saleen Automotive is the latest American carmaker to announce that it is seeking a potential buyer, with management acknowledging the firm has suffered financially from the economic downturn and rising fuel prices.
According to Automotive News, Saleen’s 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 early next year. In 2004 controlling interest was sold to investment group Hancock Park Associates in an effort to raise capital, however there were reportedly a number of major conflicts within the company, mostly between the Saleen family and the new management board.
The company has faced a number of hurdles since then, having lost its founder Steve Saleen last year and CEO Paul Wilbur in August of this year. September saw additional departures of many senior officials and a freeze on production of many major product lines. Saleen has also started selling its office and factory equipment in a clearinghouse style auction, with more than 20 brand new 2008 Mustang GTs, tools, cabinets, office equipment, and factory machinery all going under the hammer recently.