Any Truth to the rumors?

[Pete C]

It is my understanding that ERA was going to buy SAI but decided against such a move until Turk got his CSX sorted out. When asked to explain the basis for the decision, a highly placed ERA manager said "We don't want to go through that again!"

Cheers, Pete C

[Turk]

You must have inside information. How true!!

TURK

[Dan Stryffeler]

From AutoWeekonline.com ;

10:13:43 May 22, 2003)
Car News briefs: Shelby set to confront Venture;

"Carroll Shelby says he hasn’t received any money from Venture in two and a half years, he blames Venture for the fall of the Series 1, and says he has set an April 15 deadline for Venture to pay up or else. Venture Industries has filed for bankruptcy.

So is that the end of the Cobra?

“Carroll Shelby will continue to build Cobras and will continue to honor agreements from those who have made deposits,” says Shelby.

Exactly where and how he will build those Cobras, along with details of the new Series 2, will come in the next exciting installment of this story. "


- not sure why this is dated May 22, but the article say Shelby's deadline is April 15th, but....

- Dan

edit: correction - it's autoweek.com not autoweekonline.com

[Dan Stryffeler]

For a detailed account of what is happening at Venture, go to;

http://www.forbes.com/global/2003/0414/032.html

The part about Shelby is maybe 2/3 of the way down;

"Where was the cash going? Some to make interest payments--a lot into companies controlled by Winget. Between 1999 and 2000 Venture bought $26 million in finished vehicles from Shelby American, a struggling maker of specialty cars 75% owned by Winget, and then recorded an impairment charge of $14 million in 2001 when it could not sell them. Venture officials defend the decision, claiming it was important for the company to keep Shelby going so it could demonstrate to other carmakers its ability to supply parts for specialty vehicles."

- Dan

[Jason Lee Nye]

Originally posted by Turk


Jason,
This wasn't about Smith Brother's love for the car. This is a rumor about a business deal. I don't believe you should be defending Smith brother's intentions in the thread where we have solicited some clarification from the good folks at SAI regarding the rabid rumors going around.

I thought SAI was a privately held company. If it is, how is it that you are privy to if they are in the red or in the black and for how many years.

As for the fight left in the old man, or him going away with a smile on his face.
You are making this sound like a hostile takeover. If it is true, it is merely a busines deal. CNN, AOL, Time-Warner, Disney,ABC etc.do this all the time.


Turk,

I made the classic assumption. Do I have any reason not to assume? Of course depending on how things turn out will depend on if I was close to the mark or I make an A$$ out of myself. No biggie, it wouldn’t be the first time for me.

As for Shelby’s statement regarding the failure of the Series 1, he is probably right being it was overpriced at least twice as much as it was worth or more. A name only carries a car so far.


Some work out great, some don't.
Let's hope this is as success story if it comes to pass, not another ENRON.

TURK

Turk,

I made the classic assumption. Do I have any reason not to assume? Of course depending on how things turn out will depend on if I was close to the mark or I make an A$$ out of myself. No biggie, it wouldn’t be the first time for me.

As for Shelby’s statement regarding the failure of the Series 1, he is probably right being it was overpriced at least twice as much as it was worth or more. A name only carries a car so far.

I hope it turns out for the better as well.

[Turk]

Jason,
We can both agree on at least two things. I too have made an A$$ out myself. We are even there.

As for the Series 1. Dead on. Not only it is an overpriced car, but when that car first became available there really wan't too many car in that class. Today for $100-150K the list of cars that are nothing short of FANtastic is very long. It is not competetive in today's market. Shelby name or no Shelby name.

TURK

[powerpagers]

BUSINESS IS BUSINESS, IT NEEDED TO PULL ITS OWN WEIGHT AT THAT PRICE $$$$$.

[M & M]

I was in Vegas last weekend with my 12 yr old son for the NHRA races. We decided to stop in at Shelby HQ's so he could look at some of the cars in the showroom. I have been by there before and thought my son might like to see some ORIGINAL metal. Also I wanted to look at one of the new fiberglass body cars if they had one to show.

Anyway, upon our arrival, we noticed a sign in on the door stating that they have moved to another building within the area. So we proceeded to the location that was given. There were two entrance doors and a window in between with a poster of the $39k ad car. When I looked in the windowed doors there was no one around at the reception desks. Also, NO SHOWROOM! Just a small reception type area with a desk.

On our way to the entrance I noticed a garage bay door open with a couple of workers and a couple of 427's sitting there. So I walked over to the garage and spoke to someone there. I asked if there was a showroom anyore. He said no. Also he said that the Series 1 was not being made anyone. (Something I did not know that may be old news to most of you here at the fourm.)The impression I got was that the company might be having financial problems. I believe he said (and might be wrong) that the new building is about 25% the size of the old facility. They did not need the size of the old facility since they were no longer making the Series 1.

Well folks I am zero for two now with Shelby. First time I was there no one would give me the time of day, second time there was know one there to give me the time of day!

I guarantee you this, if I ran my company that way I would go broke.

Turk knows what I mean.

Cheers,
Mike

[powerpagers]

I was there in the spring last may. It looked like a thriving business busting at the seams busy with lots of people.

[Bill Wells]

Mike, tongue in cheek here, but two out of two exposures like you encountered is scary !!

did you get a chance to go to the prison ? Maybe they were all out there helping out ,serving food or laying fiberglass with the inmates ? or, perhaps they were all in South Africa making their new cars ?

Kinda makes one nervous to think such treatment to walk in traffic, who could be a potential buyer, are the same folks touting their new CAV built South African $39.9K car proclaiming to be able to provide the same level of customer service that the other leading replica makers provide. Assuming they are still down the road from the Vegas drag strip, and this was the nationals one would think they would be prepared for extra walk in traffic from attending car enthusiasts and be staffed accordingly with a new SA car there to inspect..... hmmmmm....

.oh, I know...someone had some 'get out of jail' cards, so everyone went home !! LOL...Bill

[mrmustang]

Boys and girls, with the sale of the corporate assets, the move to the new digs (the old corporate holders owned the lease on the other building I believe) was a given......Smaller yes, but just as serious I'm sure about building out a quality product.....Down and out, hardly......Regrouping, yup, you bet...........If you caught them while the move was in progress, yes, I can see that no showroom would be set up yet. As for the folks you spoke with, did you get their names?????? And what they did for the new (or old) company??? Or if they even work for the new SAI, as there is at least one company in the same basic coimplex that is a builder and not associated with SAI (or so I have been told).........


Sincerely,

Bill S.

[M & M]

First I want to say I am not trying to stir up $hit here. Just wanted to relate what I saw since no one from SAI has given Turk the courtsey of a reply, at least here at the forum.

Oh my Mr. Wells, always trying to cause me embarassment! You mean I need to watch how I expose myself!

My retail mind thought the same thing about the potential of someone (potential buyer) stopping by from the drag races. Also why not have a small display at the track with all us gear heads running around?

Bill S,

This is not the builder in the same complex. They were not in the middle of moving. It was obvious that they had been there awhile. The new building is just a short distance from their old location in the same complex of warehouses adjacent to the racing tracks at Vegas. I did not get the impression that there will ever be a showroom like they had before, no way, because no room.

Also, I am not sure what you are refering too about the new and old company. No one has ever confirmed that they sold and after reading their last news post at the Shelby web site I do not think anyone can draw the conclusion that they have sold. I did not ask anything about the company sale.

Mike

[Jason Lee Nye]

Is Factory 5 planning on having an office in Vegas?

Hell I wouldn't mind, they would just be hours away!

[Years Ago]

M & M

I am sure it was not your intent, but you are stirring up $$$$ because you have overlooked the prior resonses to your specific question in other threads on ClubCobra. Turk has been resonded to. Your specific question, or one very similar to it (posed by Chuck) was answered by me on another thread in early September, at the time of Shelby's move.

I repeat it here for your benefit and for others that may have similar questions.

----

Chuck, did I meet you in the parking lot at Shelby Thursday? Someone and his wife (I assume) drove up looking for the museum and we talked in the parking lot. Perhaps it was not you.

Something needs to be clarified. When we opened the Shelby facility in the 120,000 Sq Ft. building you saw empty, we had 10,000 Sq. Ft. allocated to Cobra. The Cobra operation has greatly expanded. The new facility is dedicated solely to Cobra, and consists of 30,000 Sq. Ft. (in my calculation that is three times the size). The company is hoping to have another 3,000 sq. ft. at the new location dedicated to a showroom operation in a month or so and a re-start of the daily tours.

The larger vacated facility will hopefully not be vacant for long. The current vacant building is a result of the "splitsville" situation with Venture Industries, which is the party currently working with bankruptcy problems. The existing Series 1 stuff (of which there is quite a lot) is in storage in part of that complex still awaiting Venture determination as to how to get it back to the market.

I worked with both sides while I was at Shelby, and am pleased to see Shelby forging ahead as Shelby Automobiles, Inc.

While working with Shelby was somthing more than Venture knew how to handle, before castigating them totally, keep in mind that they invested millions into the operations, and have a vested interest in trying to get back what they can.

Hopefully, Venture will be soon able to resolve their situation at the plant and the facility can return to Shelby for full production of product being develped through the newly disclosed alliance Shelby has struck with an old friend.

Don't mourn, Shelby is still moving vigorously ahead. Amazingly so, given the difficulies in arranging the separation from Venture.

I don't quite understand Chucks reference to "only FIA and Series 1" with a $39,995 poster at the facility. The new operation is full of activity with CSX4000 (prison fiberglass) CSX4000 Aluminum (mostly Kirkham sourced bodies) CSX4000 Fiberglass expected this week from CAV, CSX7000 and CSX8000 rollers (289 and slabside) and finally CSX4000 and CSX8000 anniversary editions.

The Shelby part of the operation has had its strongest year to date in 2003, and once resettled into their own dedicated building should do just fine. The down time of the move and change in operation, will of course, put a hole in the middle of the year. (Production is and has been continuling during all phases of the move, and product is still going to market)>

As to the other reference elsewhere, FFR and Venture have talked together about using up Series 1 materials in a creative way.

Venture and FFR together in the future? - perhaps - however, it has nothing to do with Shelby.

FFR & Shelby together? Don't hold your breath. A Shelby is what Shelby designed and is under Shelby control, not what looks like something Shelby designed designed by someone else. A factual statement, not ment to be an afront to the proponents of either.

Incidently, the new location is across the street, a football field length away from the vacant building at the Speedway.

-----

Also M & M, please don't be afronted to find no one at Shelby on the week end when the hours are clearing posted "Monday through Friday". Yes, in the past, Shelby has opened when special events were at the speedway, but without a showroom to use it is not practical to invite everyone over. There would be no cars on display because of lack of room. As noted in the reply to Chuck, the lack of a museum and showroom is expected to be temporary while things are being worked out and Shelby hopes to be back in the prior buildings when things are resolved.

Believe me, no one wants the showroom and museum back more than the folks at Shelby.

Hope this helps!

[DKing]

On this thread I'm reading that FFR is buying SAI, and on another ClubCobra thread I read that SAI is buying AC? Both of these can't be true. I find the FFR buying SAI one a little far-fetched. Who starts these rumors?

[Jason Lee Nye]

From Years Ago it appears FFR might be working with Venture and not SAI.

I could care less if FFR bougth SAI or not or whether the rumor is true or not, it would just be cool having a FFR office closer to me.

[terry lee]

Originally posted by Years Ago


M & M



Incidently, the new location is across the street, a football field length away from the vacant building at the Speedway.

-----

Is that like 350 feet; like in GT 350?
I couldn't resist

It's almost too co-incidental!

TL

[M & M]

Wayne,

Thank you for the courtsey of a reply. I found this thread at the top of the Shelby American Forum area and it was unanswered. I am not going to search all over Club Cobra to see if this particular thread was answered (all or in part) somewhere else. I do frequent this forum, but must have missed you prior response, sorry.

I did not stop by SAI on the weekend. It was very early on Friday afternoon. The sales office doors were unlocked, I poked my head in, but no one was around at the office.

I am just reporting what I saw and expirenced (again).

My 12 yr old son who has done several book/oral reports in grade school in past years on Carol Shelbywas more dissapointed than myself. I had told him about the ORIGINAL Mustangs and Cobras that I had seen on display in a prior visit.

I personally think that a healthy SAI, building Cobra's (I could care less about S1), is good for the industry.

Mike

[Roger Vincent]

I have admired Cobras since I was a teenager in the 60's. I could never afford one made in that era. For me, those are the only "originals." Anything since, is a replica, including anything Shelby produces now. The cars produced in the sixties are history, history, history. Shelby just got into the replica business late, and those in that venture are bent on convincing themselves and everyone else that their cars are "original." OK with me if you can sell it that way. The truth is, I can afford an SAI Cobra, but I don't want one. I'll take a Superformance over it any time, any day, and the cost has nothing to do with it. So, in my honest opinion, I couldn't care less who merges with whom, as long as SPF is still around. Sorry for the deviation from the thread, but it is a forum, and I just couldn't resist.

[Allan A]

It's great that so many SPF guys love their cars, but this bashing crap is complete BS.

Bill, In my opinion you have way to much time on your hands. I owned an SPF, would I buy another one NO WAY IN HELL. I could rattle a list of things that were problems with the car. It just turns my crank all of the nonsense you seem to come up, I am done you are not worth my time.

Allan