Automotive Tuning Company Saleen in Trouble
02-04-2009, 11:01 AM
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Automotive Tuning Company Saleen in Trouble Saleen, Inc. sells off most of its assets
Irvine, California, February 2, 2009 -- After announcing it was looking for a buyer in early November, Saleen Incorporated announced today that MJ Acquistions has acquired certain assets of America's premier automotive lifestyle brand, relating to Saleen's supercharger, aftermarket and high performance street vehicle businesses.
The transaction reportedly was finalized last Friday, which left all of the employees (including Saleen Inc. CEO Chris Theodore) with the legal formality of being without jobs -- at least temporarily. Some hirebacks have already taken place as the transition progresses.
While the terms of the deal were not disclosed, the purchase does not include the assets associated with the supercar (S7 or S5 Raptor vehicles) or the paint operations, which will remain with Saleen Incorporated.
The ownership of MJ Acquisitions controls a family of companies which provide full service engineering, design, manufacturing, assembly and control systems for the automotive industry. It's affilitated companies include Cyltec, LLC, Power-Tec Engineering, LLC, Arrow Racing Engines, LLC, and Control-Tec, LLC.
"MJ Acquisitions and its affiliates are a group of true car professionals with vast experience in the engineering, production, assembly and distribution of performance and racing vehicles" said Theodore in a press release. "This influx of new life into the Saleen, RaceCraft and SpeedLab brands is a win-win situation."
Theodore noted loyal Saleen customers, dealers and enthusiasts can look forward to an exciting transition period.
"We moved on this purchase quickly to ensure that the process of delivering high-quality automobiles and components to the consumers is not disrupted," said Mike Shields, President and CEO of MJ Acquisitions. "We are working with the talented team from Saleen and our own experts to continue the quality, delivery, and performance the customer base and delalership network have come to expect from the Saleen brand. I am particularly excited about Saleen's supercharger experience and its synergies with Power-Tec's development of the next generation of superchargers."
Immediate plans are to roll out the 2010 version of the newly designed Mustang for the Racecraft brand and commence other Racecraft designs for additional vehicles. The new Mustang is shipping from Ford later this month. Additionally, the Saleen brand will have a new design of the flagship S-Line that is already in the works and scheduled for release in the third quarter of 2009.
While this announcement may provide more questions than answers for some, Saleen owners should be assured that key warranty and sales staff are still at the company to serve dealers and owners, with more hirebacks likely coming in the days ahead.
MJ Acquistions does plan to work with the dealer network and others to establish the future product line. A company spokesperson said more announcements will be forthcoming, so stay tuned.
Irvine, California, February 2, 2009 -- After announcing it was looking for a buyer in early November, Saleen Incorporated announced today that MJ Acquistions has acquired certain assets of America's premier automotive lifestyle brand, relating to Saleen's supercharger, aftermarket and high performance street vehicle businesses.
The transaction reportedly was finalized last Friday, which left all of the employees (including Saleen Inc. CEO Chris Theodore) with the legal formality of being without jobs -- at least temporarily. Some hirebacks have already taken place as the transition progresses.
While the terms of the deal were not disclosed, the purchase does not include the assets associated with the supercar (S7 or S5 Raptor vehicles) or the paint operations, which will remain with Saleen Incorporated.
The ownership of MJ Acquisitions controls a family of companies which provide full service engineering, design, manufacturing, assembly and control systems for the automotive industry. It's affilitated companies include Cyltec, LLC, Power-Tec Engineering, LLC, Arrow Racing Engines, LLC, and Control-Tec, LLC.
"MJ Acquisitions and its affiliates are a group of true car professionals with vast experience in the engineering, production, assembly and distribution of performance and racing vehicles" said Theodore in a press release. "This influx of new life into the Saleen, RaceCraft and SpeedLab brands is a win-win situation."
Theodore noted loyal Saleen customers, dealers and enthusiasts can look forward to an exciting transition period.
"We moved on this purchase quickly to ensure that the process of delivering high-quality automobiles and components to the consumers is not disrupted," said Mike Shields, President and CEO of MJ Acquisitions. "We are working with the talented team from Saleen and our own experts to continue the quality, delivery, and performance the customer base and delalership network have come to expect from the Saleen brand. I am particularly excited about Saleen's supercharger experience and its synergies with Power-Tec's development of the next generation of superchargers."
Immediate plans are to roll out the 2010 version of the newly designed Mustang for the Racecraft brand and commence other Racecraft designs for additional vehicles. The new Mustang is shipping from Ford later this month. Additionally, the Saleen brand will have a new design of the flagship S-Line that is already in the works and scheduled for release in the third quarter of 2009.
While this announcement may provide more questions than answers for some, Saleen owners should be assured that key warranty and sales staff are still at the company to serve dealers and owners, with more hirebacks likely coming in the days ahead.
MJ Acquistions does plan to work with the dealer network and others to establish the future product line. A company spokesperson said more announcements will be forthcoming, so stay tuned.
03-09-2009, 12:34 PM
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Saleen Warranties Dissolve As Former Owner Ceases Operations
Saleen Inc., amidst financial distress, ceases operations and leaves Saleen vehicles and its owners without warranties
Breaking News -- March 06, 2009
by Jim Dvorak, Saleen Owners and Enthusiasts Club, www.soec.org
Today, all certified Saleen and Racecraft dealers were sent a letter from MJ Acquisitions, Inc., the new caretakers of the Saleen brand.
And like most stories these days, there is often good news and bad news -- and this story is no different.
The Good News
MJ Acquisitions, consisting of an experienced and energetic staff who are very familiar with the Saleen brand, will continue to provide service parts, performance parts, accessories and letters of authentication to support Saleen and Racecraft vehicle owners well into the future.
The Bad News
Those Saleen and Racecraft owners needing dealer-provided in-warranty repairs of Saleen components are likely to incur an unforeseen out-of-pocket cost that my not be reimbursed, due to unfortunate circumstances with the financial condition of the brand's former owners, Saleen, Inc.
Bad News Backgrounder
After announcing it was seeking a buyer last Fall due to the recent and current economic conditions, Saleen, Inc. -- a company majority-owned by Hancock Park Associates -- was on a direct path to cease all operations for public business as of February 01, 2009. After a brief period of negotiations, MJ Acquisitions stepped-in as a bailout action and purchased certain assets of Saleen, Inc. on January 30, 2009. This transaction was an effort to keep the brand from becoming completely extinct.
The now-former owner of the brand, Saleen, Inc., has just announced it has ceased all operations. Saleen, Inc. is responsible for warranties existing before February 2, 2009, and thus regrettably it has been announced that they are now unable to honor any warranties on any of its parts, services, and vehicles including cars, trucks, and aftermarket parts prior to this date. All inquiries regarding these and other financial claims for Saleen, Inc. should go to Jaimee L. Witten of Bodman LLP at (313) 392-1045.
Furthermore, it has been stated that Saleen, Inc. is responsible for parts and labor costs on all vehicles with a remaining Saleen, Inc.-backed factory warranty – those currently in the hands of owners, as well as those that may remain on showroom floors.
MJ Acquisitions, the “new Saleen,” will continue to sell parts to the certified dealers, at a discount, to allow dealers to service their existing inventory and customer vehicles. It will, however, be the dealer's responsibility to contact the representative of Saleen, Inc. at the number above to obtain any reimbursement for parts and labor costs associated with the repair of a Saleen or Racecraft vehicle manufactured by Saleen, Inc.
It was further emphasized in the letter to dealers:
"MJ Acquisitions, Inc. is not responsible or obligated to cover warranties and/or any financial liabilities of Saleen, Inc."
It was also expressed that the team at MJ Acquisitions does apologize for the hardship this places on its valued customers, and they understand that this will impact all parties, as it would with any automotive manufacturer closing its doors.
A Little More Good News
Parts purchased from MJ Acquisitions, on or after February 2, 2009, will have a 12 month/12,000 mile limited warranty against manufacturer defects.
MJ Acquisitions, Inc., as the new caretakers of the Saleen brand, has a dedicated staff of “Saleen-bred” professionals who are knowledgeable about Saleen, Racecraft, and Mustang products, and are eager to help.
And the balance of your Ford-covered components and their related warranty remains intact.
How to reach MJ Acquisitions and Saleen Speedlab
To order parts or authentication letters, call Speedlab at 1-800-888-8945, option 2
Many parts, accessories, and apparel are available on the Speedlab eBay store at: http://stores.shop.ebay.com/SALEEN-SPEEDLAB For technical assistance, call 1-800-888-8945, option 4
An Optimistic Future
The team at MJ Acquistions asked that the Saleen Owners and Enthusiasts Club help spread the word that the existing Saleen, Racecraft and Speedlab product line will continue to be supported, and new product development is already underway. Market testing is being done on future vehicles, and news on future plans and products will be forthcoming.
http://saleenforums.soec.org/showthread.php?t=4720
Saleen Inc., amidst financial distress, ceases operations and leaves Saleen vehicles and its owners without warranties
Breaking News -- March 06, 2009
by Jim Dvorak, Saleen Owners and Enthusiasts Club, www.soec.org
Today, all certified Saleen and Racecraft dealers were sent a letter from MJ Acquisitions, Inc., the new caretakers of the Saleen brand.
And like most stories these days, there is often good news and bad news -- and this story is no different.
The Good News
MJ Acquisitions, consisting of an experienced and energetic staff who are very familiar with the Saleen brand, will continue to provide service parts, performance parts, accessories and letters of authentication to support Saleen and Racecraft vehicle owners well into the future.
The Bad News
Those Saleen and Racecraft owners needing dealer-provided in-warranty repairs of Saleen components are likely to incur an unforeseen out-of-pocket cost that my not be reimbursed, due to unfortunate circumstances with the financial condition of the brand's former owners, Saleen, Inc.
Bad News Backgrounder
After announcing it was seeking a buyer last Fall due to the recent and current economic conditions, Saleen, Inc. -- a company majority-owned by Hancock Park Associates -- was on a direct path to cease all operations for public business as of February 01, 2009. After a brief period of negotiations, MJ Acquisitions stepped-in as a bailout action and purchased certain assets of Saleen, Inc. on January 30, 2009. This transaction was an effort to keep the brand from becoming completely extinct.
The now-former owner of the brand, Saleen, Inc., has just announced it has ceased all operations. Saleen, Inc. is responsible for warranties existing before February 2, 2009, and thus regrettably it has been announced that they are now unable to honor any warranties on any of its parts, services, and vehicles including cars, trucks, and aftermarket parts prior to this date. All inquiries regarding these and other financial claims for Saleen, Inc. should go to Jaimee L. Witten of Bodman LLP at (313) 392-1045.
Furthermore, it has been stated that Saleen, Inc. is responsible for parts and labor costs on all vehicles with a remaining Saleen, Inc.-backed factory warranty – those currently in the hands of owners, as well as those that may remain on showroom floors.
MJ Acquisitions, the “new Saleen,” will continue to sell parts to the certified dealers, at a discount, to allow dealers to service their existing inventory and customer vehicles. It will, however, be the dealer's responsibility to contact the representative of Saleen, Inc. at the number above to obtain any reimbursement for parts and labor costs associated with the repair of a Saleen or Racecraft vehicle manufactured by Saleen, Inc.
It was further emphasized in the letter to dealers:
"MJ Acquisitions, Inc. is not responsible or obligated to cover warranties and/or any financial liabilities of Saleen, Inc."
It was also expressed that the team at MJ Acquisitions does apologize for the hardship this places on its valued customers, and they understand that this will impact all parties, as it would with any automotive manufacturer closing its doors.
A Little More Good News
Parts purchased from MJ Acquisitions, on or after February 2, 2009, will have a 12 month/12,000 mile limited warranty against manufacturer defects.
MJ Acquisitions, Inc., as the new caretakers of the Saleen brand, has a dedicated staff of “Saleen-bred” professionals who are knowledgeable about Saleen, Racecraft, and Mustang products, and are eager to help.
And the balance of your Ford-covered components and their related warranty remains intact.
How to reach MJ Acquisitions and Saleen Speedlab
To order parts or authentication letters, call Speedlab at 1-800-888-8945, option 2
Many parts, accessories, and apparel are available on the Speedlab eBay store at: http://stores.shop.ebay.com/SALEEN-SPEEDLAB For technical assistance, call 1-800-888-8945, option 4
An Optimistic Future
The team at MJ Acquistions asked that the Saleen Owners and Enthusiasts Club help spread the word that the existing Saleen, Racecraft and Speedlab product line will continue to be supported, and new product development is already underway. Market testing is being done on future vehicles, and news on future plans and products will be forthcoming.
http://saleenforums.soec.org/showthread.php?t=4720
