A Ford Motor Company (NYSE:F) dealership called the Red McCombs in San Antonio Texas has filed a lawsuit against a supercar startup called Saleen Automotive citing fraudulent conduct and violation of their contract.
The Ford dealership claims that signed a deal with Saleen for the modification of three 2015 mustangs. Saleen delivered the vehicles six months past their due date. Additionally, the vehicles lacked some upgrades valued at $22,000. The dealership claims that it is yet to receive compensation for the missing upgrades. Another Tennessee dealer known as the Friendship Ford of Bristol also plans to take matters into the courtroom over Saleen’s failure to deliver. The Tennessee dealer claims that it ordered a 2015 S302 Yellow Label Mustang that it ordered in 2015. The vehicle reached the Saleen facility in California in September last year. it was supposed to be returned to the dealer towards the end of 2015 but its whereabouts are still unknown.
Steve Saleen, the founder of Saleen Automotive claims that the modified vehicle was shipped to the Ford dealer in June. Denny Fruth, the general manager at the dealership stated that the modified mustang is yet to arrive. Fruth stated that he is unaware of the vehicle’s current location and that there has been a different excuse every month. the general manager also stated that at some point he considered getting on a plane and flying all the way to the Saleen facility to see whether the car is still there.
Saleen responded to the Ford dealers claiming that it has taken so long to deliver the vehicles due to heavy demand for modified 2015 Ford Mustangs. The startup manufacturer also stated that hundreds of modified mustangs have already been delivered to owners across the US. It has not been an easy road for Saleen since it was relaunched in 2011. Regulatory filings show that the firm has lost roughly $30 million since its relaunch and quarterly profits have been hard to come by.