Friday, 28 November 2014

Saleen In Financial Trouble, Has $7261 to Its Name

It’s a sad day when a business can’t afford to even buy the very product it sells. So it is for Mustang tuner Saleen, which filed a grim third-quarter filing earlier this month noting that it only had $7261 in cash and more than eight times as much debt as total assets.
Fun things first, however. In delivering the first of its FourSixteen cars based on the Tesla Model S, Saleen has renamed the car the ST (for “Saleen Tesla”) and is now offering them in two grades. The ST380, at $132,000, will bump up the 380-hp base model while the ST691 appropriately mods the dual-motor P85D for $164,600. Since hacking the Model S control software is apparently next to impossible, there are no power upgrades, only shorter gear ratios, upgraded ceramic brakes and suspension, and aero and styling tweaks. Saleen estimates the ST691 will hit 60 mph in less than three seconds. The company also has several deposits for the upcoming 2015 Mustang S302, also expected in two strengths of 450 and 640 horsepower, the latter with a supercharger on board.
We initially saw the grim financial news at Jalopnik, and when we waded into the 10-Q filing and attempted to contact Saleen, we also came away with neither an official comment nor a positive outlook on the tuner’s uncertain future. As of September 30, Saleen owed $583,900 in payroll taxes, $1.1 million in past-due invoices and salaries it hasn’t paid in more than 90 days, and more than $750,000 in loans that are either in default or will be in default soon. The company counts $668,629 in assets and more than $5.6 million in total liabilities. Also, CEO Steve Saleen isn’t getting paid a red cent.
“These factors raise substantial doubt about our ability to continue as a going concern,” the filing said.

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