Another Shelby Lawsuit

[Car Nut]

Plasan Carbon Composites, a leading supplier of Carbon Fiber parts for OEM’s and aftermarket companies filed a lawsuit on December 17th in the U.S. District Court of Vermont claiming Shelby Autos has refused to pay for Carbon Fiber Parts manufactured and delivered by Plasan back in 2008.

In the suit Plasan claims they manufactured 1,747 sets of Carbon Fiber parts for the Shelby GT500KR and delivered them to Shelby Autos starting in April of 2008 and completing delivery in December of 2008. Each set of Carbon Fiber parts include a Shelby GT500KR hood, front splitter and left and right mirror cover. The four Carbon Fiber parts that make up each set are said to cost $3,800 according to court documents. That would make a total of $6,638,600.00 in parts that were not paid for. Yes thats $6.6 Million dollars.

The cost of the Carbon Fiber parts brings to light another dispute involving Shelby Autos when they were trying to charge a GT500KR owner $20K+ to replace the Carbon Fiber hood. What a markup they had.

http://www.mustangheaven.com/2009/sh...n-fiber-parts/

[DWRAT]

Looks like anyone needing a hood needs to skip Shelby and go directly to Plasan Carbon Composites and save the 600% mark-up.

[1985 CCX]

It's too bad that SAI is not run like a business with long term success plan. With this type of negative press long term will not be in the cards. Imagine how great their company would be if they had top notch Customer Service, loyalty to suppliers, embraced other manufacturers (hammer out deals to co-exist thus pro-active), support organizations like SAAC and provide backing to websites like this?

They would then have a following and quality that would be unmatched in this cottage industry for years to come.

[Cashburn]

So now the name change to Shelby American makes sense...

[Don]

The web site for Plasan Carbon Composites, Shelby GT500KR is mentioned as a Recent Project.

" Dedicated to automotive carbon fiber, Plasan Carbon Composites is the leading Tier 1 supplier of carbon fiber parts and assemblies in the United States. We specialize in the production of Class A and structural parts for mid-volume production cars. "

http://www.plasancarbon.com/home/

[Excaliber]

Sounds like enough product was produced to supply 1,700 or so KR's.

So, how many KR's were actually produced and how many were actually sold? If the sell number is substantially less than 1,700, then I think I see the problem.

Well that was easy, just a Google away found the numbers.

This 1,571 production run matches that of the original 1968 GT500KR. In total, 1,746 units will be produced, with the extra 175 units going to other markets.

1,746 cars and 1,747 "kits" to make cars. I assume every car sold? Leaving enough cash to pay the supplier?

[mtml427]

It is really hard to understand the mindset of Shelby or those that may advise him. Here you have a rich old man that seems to think his mission in life is to make everyone miserable.

[Ron61]

I believe the 1968 GT-500 cars were made by Ford and not Shelby as he had left and gone to Africa. He sold Ford the right to build the cars and use his name, but I think 1967 was the last year that Shelby actually built the Mustangs. However, no matter what the number or who built them, if they ordered that many of the fiberglass components, then they should pay for them. It seems there are always lawsuits concerning Shelby one way or another the past few years. I wonder if it is his lawyers and other top people that are causing all of this as I think he is to old and sick to be instigating everything that is going on. And for what they charge for one of these new KRs they should be able to pay for the parts.

Ron

[Excaliber]

Could be a sign the company is in financial deep do-do. Wouldn't be the first time they couldn't pay suppliers. From all the hype you would think they have turned the corner and are a profitable company. That does not appear to be the case. They've had a LOT of expensive legal issues to deal with, sued or being sued involving multiple players. My guess is the lawyers have sucked up any profit.

How ironic is this, could be justice unfolding as we speak.

[Ron61]

Originally Posted by Cashburn

So now the name change to Shelby American makes sense...

And this could well be part of their strategy. Man, they could write books on all of the different lawsuits they have been involved in the past few years. Now he will have to sue somebody else to pay this one off if the name change doesn't stop it.

Ron

[rustyBob]

I wonder will he drag Superformance down with him......
or is Superformance paying to back him up on this new suite
against SAI.

[kayakjack]

Originally Posted by Excaliber

Sounds like enough product was produced to supply 1,700 or so KR's.

So, how many KR's were actually produced and how many were actually sold? If the sell number is substantially less than 1,700, then I think I see the problem.

Well that was easy, just a Google away found the numbers.



1,746 cars and 1,747 "kits" to make cars. I assume every car sold? Leaving enough cash to pay the supplier?

From Shelby's press release about their name change...

The company also worked with Ford Motor Company to build 1,571 total 2008
and 2009 Ford Shelby GT500KRs and approximately 5,500 total 2007-2008
Ford Shelby GT Mustangs. Shelby Automobiles also built 500 Shelby GT-H
coupes in 2006 and 500 Shelby GT-H convertibles in 2007 for the Hertz

[Excaliber]

1746 - 1571= 175 Which is consistent with the TOTAL number of cars built, apparently at least. There is a reference to 175 addtional cars built for "other markets", it does specify the meaning of "other markets". Foreign market perhaps?

[Don]

Re: Name Change

" The company says fans have clamored for the return of the name for years. "

*** CS Press Release:

" LAS VEGAS – Dec. 15, 2009 – Shelby Automobiles, a wholly owned subsidiary of Carroll Shelby International Inc. (CSBI:PK), will honor the 45th anniversary of the 427 Cobra and Shelby G.T.350 by consolidating its operations under the Shelby American banner. Carroll Shelby founded the original Shelby American in 1962 to create the legendary sports cars and muscle cars that forever changed the performance world, and it is only fitting that Shelby Automobiles join the original team.

“Enthusiasts have asked us many times to bring back the Shelby American name over the past several years,” said Shelby. “Though I’m proud of the cars that we built as Shelby Automobiles, we’re fulfilling that wish for fans worldwide. Using the Shelby American name will better connect our current vehicles to our heritage of building great cars like the G.T.350 and Cobra.”

One of America’s greatest race car drivers, Shelby dominated sports car racing in the mid-1950s, including a victory at the 24 Hours of Le Mans. After retiring from racing due to a heart ailment, he founded Shelby American to manufacture performance cars. His band of hot rodders created the legendary Cobra sports car in 1962. Three years later, they unveiled a big block version of the Cobra. About that same time, Ford asked Shelby to turn the Mustang into a dominant muscle car. The Shelby team put Mustang at the pinnacle of the performance world with the Shelby G.T.350 and Shelby G.T.500.

Shelby American also offered high performance parts, modified cars for individuals and was involved in racing. From drag strip triumphs to victories at Le Mans and America’s first World Manufacturer’s Championship, Shelby cars dominated performance circles. “We’re still building genuine Shelby Cobras and have been involved in some of the most exciting Ford Mustangs ever to wear a Shelby badge,” added Amy Boylan, president of Shelby American. “With the anniversary of Shelby American’s two most revered models, it’s the right time to return to our roots through a name change. And just like the 1960s, the Shelby American name will soon appear on one of the most exciting vehicles we’ve ever built.” "

*** AutoWeek.com version:

By GREG MIGLIORE


" Carroll Shelby's performance-car business is returning to its roots.


Shelby Automobiles is changing its name to Shelby American--the original banner used by his sports-car business and the historic Le Mans-winning cars in the 1960s.

Shelby says the switch is in honor of the 45th anniversary of two of his most famous cars, the 427 Cobra and the Ford Mustang Shelby GT350. The company says fans have clamored for the return of the name for years.

“Enthusiasts have asked us many times to bring back the Shelby American name over the past several years,” Carroll Shelby said in a statement. “Though I'm proud of the cars that we built as Shelby Automobiles, we're fulfilling that wish for fans worldwide.

“Using the Shelby American name will better connect our current vehicles to our heritage of building great cars like the GT350 and Cobra.”


Shelby American traces its roots to 1962, when Carroll Shelby founded the company to make sports cars after his own racing career--which included a win at the 1959 24 Hours of Le Mans--was cut short because of a heart problem.

The company found fame in the 1960s with the 289 and 427 Cobras, as well as a slew of custom Mustangs. Shelby was tapped to lead the team of racers that beat Ferrari in the historic 1966 and 1967 24 Hours of Le Mans.

Shelby American is a division of Carroll Shelby International Inc. The modern version of Shelby Auto was formed in Dec. 2003."


AutoWeek | Updated: 12/15/09, 9:59 am et

[computerworks]

There are always two sides to every story (maybe even 3) and usually a whole lot more facts than what would appear in an internet post of a filing.

Apparently, these hood guys were a Ford supplier, part of the KR program at SA.

I remember talking to the guys there at SA during that program...and that they were constantly backordered on hoods.

At one point they had all 1700 cars in cold storage (indoors) for months in Vegas waiting for them

Somewhere I have pics of all the lifts with cars on them, without hoods.

And, the filing of the suit says they want to be paid a delivery bonus?

Sometimes, things need to be brought to the courts to settle an issue or two.

We do have a policy of not discussing any ongoing litigation here on ClubCobra, so please keep the speculation and editorial in a proper perspective.

thanks

Oh, BTW, The name change has absolutely nothing to do with this. Shelby Autos was not brought down in the change...they just wanted to revert to the old company's name, now that it was clear.

...and there was never a $20k hood ex factory from Shelby.

[Excaliber]

...what would appear in an internet post of a filing.

So what are you saying Ron, that we can't believe everything we read here on CC?

Balderdash!!

[computerworks]

Originally Posted by Excaliber

So what are you saying Ron, that we can't believe everything we read here on CC?

No...it's just that sometimes the speculation tends to...uh...leave the asphalt and go onto the gravel, so to speak.

[Car Nut]

Regardless of the speculation, there is a lawsuit and the supplier claims he was paid only of small pitance of what he was owed. I guess we shall see at some point in the future how this all shakes out.

[computerworks]

Originally Posted by Car Nut

I guess we shall see at some point in the future how this all shakes out.

And...that is the point to be made.

[Excaliber]

Well having done a little "agricultural work" with my car I know it can get hairy when you leave the asphalt.