Could Saleen Be in Serious Financial Trouble?

2015 Saleen 302 Black Label (Credit: Saleen)

The time may come in the near future that being able to outfit a Mustang with Saleen parts will be a thing of the past. Information contained in the company’s latest quarterly report paint a pretty grim picture for a brand that is the beloved of many enthusiasts.

As of the end of last quarter, Saleen’s cash assets are listed at a paltry $7,261. Total assets for the company are listed at $668,629, which sounds better but still isn’t much for Saleen to survive on. From April through September of 2014, the company says it has run at an operating loss of $3,056,980. The report also details out several legal proceedings it is involved in, with management insisting that the ongoing litigation isn’t a factor in the tight financial state of affairs. The situation is so bad that Saleen is counting on the bank to grant another extension of the money it owes, just so it can continue operating and hopefully turn things around.

The plan for a turnaround doesn’t seem to be specific in any way. Essentially, Saleen would need some grace from the bank, plus the injection of some serious funds from an outside source. That could mean a new owner and possibly some big changes for the company.

The news casts a shadow of doubt on future vehicles promised by the company. That means customers who put down deposits on the Saleen 302 Black Label have reason to at least be concerned about this latest news. The modified version of the Tesla Model S, called the Saleen FourSixteen, could potentially be put on hold just as it has started coming to market.

It’s important to note that as of right now, there are mostly questions and not many answers. Saleen has been through some rough waters in the past, including declaring bankruptcy back in 2007. Still, one has to wonder if Saleen won’t go the way of Saab, Hummer, and so many other brands that have met their ultimate fate in recent years.