Hot Wheels Amy saves Shelby Automobiles, Inc
After ten years at the helm of Mattel, "Hot Wheels Amy" Boylan was beginning to feel penned in. More of an entrepreneur than a corporate manager, she wanted something more challenging and exciting. And boy did she find it, as the new President of Shelby Automobiles, Inc.
She had met Carroll Shelby in 2003 when he approached her to produce 1,000 Hot Wheels Cobras to give to guests at his 80th birthday party. Shelby was so impressed by the way she hastily handled the request, that when she left Mattel in 2005, he immediately sought her out.
You see, Shelby Automobiles was in a bit of a mess. Even with Carroll's legendary name, there had been some problems with manufacturing and the Series 1 debacle had drained $38 million from the company coffers. Orders for 170 Cobras, even with their $10,000 deposits in hand, couldn't be filled because the company couldn't afford the necessary parts. Although Boylan thought the company was $3 million in debt, it turned out to be closer to $6 mil. The huge Las Vegas facility was practically at a standstill. Perhaps this was too big of a challenge. Well, to most people maybe. To Amy, she saw the light at the end of the tunnel.
Follow the jump for the rest of the story.
[Source: Automotive News, sub req]
Boylan was dedicated to ensuring the legacy of Carroll Shelby. She knew that she had been put in charge of keeping his good name preserved. She talked to the 170 customers and every single one of them said they would rather wait for their Cobras than get back their deposits. She knew there were good people at the factory and she wanted to keep them on to preserve morale as well. She recognized that production contracts were the key to saving jobs at Shelby's plant.
Shelby had been hired as a consultant on the Ford Shelby GT500, but they didn't get a contract to build the car. A month after taking over at Shelby, Boylan visited Ford Motor Co. and walked away with a contract to build Shelby Mustangs in Las Vegas. And it hasn't ended there.
The Shelby Hertz GT-H Mustang, a 40th anniversary package for the GT500, and a contract to produce at least 6,000 more Shelby Mustang GTs were all accomplished under Amy's helm. And the best news yet is that all 170 customers have their Cobras, the debt has been almost wiped out thanks to licensing deals like the MacTools Shelby toolboxes, and the staff that had been cut from 52 to 21, is back up to 70 now. And they are busy and have the parts they need to do their jobs.
Reader Comments (Page 1 of 2)
bahumut 3:08PM (12/20/2006)
Wow, I didn't know they STILL made cobras outside of the Factory Five Racing kits.
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Found On Road Dead 3:05PM (12/20/2006)
This is a wonderful story to read. A woman comes in to fix what men had f'cked up. Kudos to Boylan. I hope she makes Shelby an even better company. Maybe Ford should think about hiring her. Actually, they better not. She won't be able to do what she needs to cuz of the corrupt unions.
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Lithous 3:10PM (12/20/2006)
I don't have a subscription to Automotive News so I can only guess at some things.
First, isn't one complaint of GM products that they use "Mattel grade plastics"? So first thing she should do is obviously offer Mattel plastics in the vehicles.
Second, build all parts in China, Malaysia, Taiwan like Mattel/Hot Wheels does.
Third, collect a paycheck.
I don't think modern business schools therefore most current execs know how to build anything profitably in the U.S. Fix your sales slump by moving production to Mexico or China. Easy fix. Don't make the product worth what little bit (and I mean that, because the cost savings rarely gets passed on to the customer) more it would have to sell for to be made in a country with real labor costs and environmental care.
Even Walmart on the selling side used to truly say and live up to the "Bring it home to the U.S.A" service mark until Walton died then the guys with no original ideas that could never have built Walmart from scratch but were put in charge of running the joint all but turned the slogan to "Bring it *all* on from China".
Such the easy way out. Wouldn't surpise me in the least if you turn any one of the 1000 custom made Hot Wheels Cobras over and the "Made in" stamp is the same as the real one in a couple of years. Maybe they could get a better deal on the Taiwanese electric motors that Tesla is using in their vehicles since they have more buying power in Taiwan than Tesla. For some reason I don't think we'll have such passionate discussions about the motor in our vehicle. Jye Maw powered Cobra, awesome dude.
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Dr. Woo 3:13PM (12/20/2006)
What a great story. Three cheers for Amy Boylan for saving an automotive icon. I'm sure she wasn't the only one responsible, but it sounds to me as if it weren't for her coming aboard, it wouldn't have happened. At least not that quickly.
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05retro 3:20PM (12/20/2006)
I've talked to Amy on some Mustang forums. She talks to enthusiasts to see what they want and is incredibly knowledgable. Three cheers to her for salvaging Shelby Auto.
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D Man 3:28PM (12/20/2006)
This story was reported in Automotive News 2 days ago.
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peyay 12:27PM (12/21/2006)
yeah thats y when u press the "read" link it takes u to automotive news numb nuts all of these "blogs" r from articles already done its for us lazy bums that dont want to read the full article
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Carlton 4:26PM (12/20/2006)
Lithous,
Are you that stupid in person or is this a show you put on for the Internet?
Inquiring minds want to know.
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Ben 4:40PM (12/20/2006)
Great story!
Now that's pulling stuff from thin air, and a fine example of what smart, creative entrepreneurs can do!
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Syd 5:32PM (12/20/2006)
Who says you can't put lipstick on a pig? Not only did she accomplish that, but she taught it to dance. Brava.
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Lithous 6:00PM (12/20/2006)
Carlton, one day you will wake up, OK, maybe *you* won't. Sorry for suggesting it (that you could possibly open your eyes).
Back to the autoblog writings...
"Although Boylan thought the company was $3 million in debt, it turned out to be closer to $6 mil. The huge Las Vegas facility was practically at a standstill. Perhaps this was too big of a challenge. Well, to most people maybe. To Amy, she saw the light at the end of the tunnel."
That is actually pretty funny. I believe it was written in all sincerity. I meanm, GM execs deal with $300 billion + debt and we are to be worried about $6 million? Wow, how will she deal with such adversity? LMAO.
Sorry, it is just me. I just think of the car world in general and this story just makes me have a mixture of thoughts. If GM was down to only selling the Corvette (not that the Shelby story is exactly the same but still...) and they hadn't really made major mods to it in decades, just trying to sell on the old idea of the Corvette then the comments on here would be "Die why don't you already." Anyway, just stating the truth. Speaking of that, was there a Cobra Death Watch series prior to this savior or is it not nearly as accepted for Farrago to dis Shelby as it is GM?
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John 6:35PM (12/20/2006)
This story has been reprinted on AutoWeek's website at http://www.autoweek.com/apps/pbcs.dll/article?AID=/20061219/FREE/61218004/1528/VehicleReviews
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gbh 10:03PM (12/20/2006)
Frighteningly enough, I have to (basically) agree Lithous is on the mark...
6MM in the hole is (in this context) chump change. Shelby has a wide breadth of potential revenue streams, the name alone is pretty much a license to print money.
Anyone who can't understand how to make tons of money managing a cult product - like anything with Shelby's name on it - is not qualified to run a lemonade stand.
The fact that Shelby lost 38MM on that pathetic 'Series 1' is simply part the nature of the specialty auto game. Oops.
The larger question is what absolute incompetant allowed that Series 1 project to get that far into the red without slamming on the brakes?
The really scary part of the story is that old Shel' based (even part of) this executive hiring decision on the expedited delivery of tiny run of custom Hot Wheels?
We'll see what happens, and perhaps it'll go better at Shelby than it did at Mattel. But I wouldn't bet on it.
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Anthem 9:15PM (12/20/2006)
Both terrible (that Shelby was in such a state of disarray) and inspiring at the same time. There are a few other "auto makers" (I use the term loosely) here in the U.S that could benefit greatly from looking beyond their own tremendously ineffective business models and short-sighted, if not down-right ignorant, interpretations of what the public wants.
BTW: Will someone pleae explain to me what the point is in decrying that this article or that was printed on such-n-such a site however many days ago. Is it some manifestation of an inferiority complex or just an abscence of tact?
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D Man Sux 12:05AM (12/21/2006)
I am happy to see Shelby rebuilding the classic Cobras--at least, I prefer Shelby doing it than these lousy kit car companies. I would have liked to see Shelby do have built more Daytonas, too. The problem is that Shelby has nothing going for it except slapping its name on Ford's Mustangs.
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Jeff the Baptist 9:00AM (12/21/2006)
"Are you that stupid in person or is this a show you put on for the Internet?"
+1
Shelby is not a major manufacturer of anything. They're a glorified performance shop. Comparing a company with a payroll of tens to a company that directly employs 400,000 worldwide and even more indirectly through parts suppliers is asinine.
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Lithous 10:24AM (12/21/2006)
"Shelby is not a major manufacturer of anything. They're a glorified performance shop. Comparing a company with a payroll of tens to a company that directly employs 400,000 worldwide and even more indirectly through parts suppliers is asinine."
My two comparisons were 1) GM's debt size to Shelby's and 2) Shelby selling the same basic vehicle for years to GM doing that with the Corvette wouldn't fly. The first point you only reiterate my correctness by stating that Shelby only has to worry about a handful of people counting on him (and now her) and GM execs have 400K+ people counting on them. So I stand with my point that it is NOTHING what he and she have to deal with. Second point is just simply the truth. If GM was narrowed down to Shelby production numbers (only selling the Corvette now) then this Shelby way of producing cars (basically the same stuff for years) would be unacceptable and called out by most on autoblog.
They could probably set up a multi-year deal with the Discovery Channel and make $6 million. Again, that is chump change not Trump change. They are a leaner company and more easily can change than a huge one.
Maybe your thoughts are much more asinine than you think.
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rvr 2:59PM (12/21/2006)
lithous: wow, comparing this to gm or any other major auto maker is just silly. comparing their debt load is silly. $6m might be a far worse debt load than $300b depending on the revenue of the company, and how the debt is structured. i mean, do you know the complete picture? i don't, so i'm not going to act like it (see how that works?).
furthermore, if you are taking potshots at her for "mattel plastics" and "made in china", please, give me a break. this is a completely different industry than toys. it's such a stupid comparison. go ahead, compete in the world market with a major toy brand where all the product is made in the u.s. give it a try. the only thing you've convinced me of with your remarks is that you know little about how businesses work.
i think the point of the article is that she is a smart business person who turned this company around and saved it from likely bankruptcy or worse. she deserves to be applauded for her creativity and determination. and all the more since she is a woman working in an industry dominated by men and a macho attitude. good for her.
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Lithous 7:15PM (12/21/2006)
"lithous: wow, comparing this to gm or any other major auto maker is just silly. comparing their debt load is silly."
Again, GM has hundreds of thousands of jobs to worry about, if Shelby Co goes under any one of tens of thousands of U.S. companies could absorb them and put them back to work. My main point and the big picture is *simply* that Wagoner has more of a right to stay awake at night and worry about each decision. And if the blogger hadn't made it seem so daunting, the task she must take on, then I wouldn't have made a comparison about the debt specifically.
Again, call the Discovery Channel (or a rival that doesn't have a similar reality show) and your debt would be significantly reduced percentage-wise right off the bat. GM, not so easily.
"$6m might be a far worse debt load than $300b depending on the revenue of the company, and how the debt is structured. i mean, do you know the complete picture?"
It's be a rare occasion for such things. I saw on HGTV one time that a guy who sold sunglasses at NASCAR events made millions a year. Sell some f'ing sunglasses with the Shelby label (which they probably already do so get more aggressive with it if the NASCAR dude could do it...)
"furthermore, if you are taking potshots at her for "mattel plastics" and "made in china", please, give me a break. this is a completely different industry than toys. it's such a stupid comparison."
Um, I was stating a (probably improper for lack of better term) ironic situation where GM has many times on here been said to use "Mattel-grade plastics". Kinda funny IMO given her former and current jobs.
As far as "made in China". What don't you get about that. Gee, Tesla is kinda like Shelby in that they are a small, niche, high performance car company and they have their motors made in Taiwan presumably to reduce cost and maximize profits. She probably had lots of connections since they probably make hundreds if not thousands of parts in the cheapest of Asian labor places. You don't think there is a realm of possiblity that she could suggest making some Cobra parts in China (or alike)?
"go ahead, compete in the world market with a major toy brand where all the product is made in the u.s. give it a try."
I'd settle for Mexican labor so at least there would be a reason for Mexicans to not come here illegally so much plus it is closer to get the products to market here. You wanted to compare GM's debt as a percentage of revenue instead of the big picture of how daunting that really is then... The fact that profit margins on things made in China must be huge compared to UAW worker assembled parts. If you can't make something in China that is profitable then you might not deserve to exist. I.E. before she got there there must have been real incompetent problems (or was she the one that simply moved my son's toys to Chinese manufacturing?)
"the only thing you've convinced me of with your remarks is that you know little about how businesses work."
I just know what I see. Specifically what is so wrong about my statements? Again, if the autoblogger hadn't made such a big deal out of the $6M I wouldn't normally do a direct compare as if stock of company A costs a penny more than company B therefore company A is worth more or is a better company or something dumb like that. But to turn around $300B with the UAW as your "partner" is much more difficult than turning $6M around. That's all, just trying to put the late nights she'll be up into perspective that she should sleep much easier knowing that Wagoner would take a couple percentage points off U.S. productivity if he makes a few wrong moves.
"i think the point of the article is that she is a smart business person who turned this company around and saved it from likely bankruptcy or worse. she deserves to be applauded for her creativity and determination."
That's fine. Figuring out that making colored dough in China (I believe it used to be made here) would add to profits is to be awarded, we all agree, but I just think that things like Play Dough are new to each generation and it should still be profitable made here if they tried. Like cereal. MANY of the toys for most of the Mattel users doesn't have to grow more and
more sophisticated to sell a bunch every year as cars do and apparently the Cobra doesn't have to get tremendously better every year or four like many models so she may do well there.
"and all the more since she is a woman working in an industry dominated by men and a macho attitude. good for her."
OK, so that is what it is all about. I don't have anything against women running things. As a matter of a fact my last car purchase was from a Division run by a woman. It shouldn't be too hard to guess which it is and what hated company selected her for that position.
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rvr 9:27PM (12/23/2006)
lithous: look, i don't deny that you have valid points to make. i just don't get what this article has to do with gm and their problems. their situation may be a thousand times worse, but so what? what is your point? we shouldn't applaud what she's done? it shouldn't get written about?
it sounds like you have an axe to grind and like you want to diminish her accomplishments. i mean, if they wrote a post about how someone came in and saved gm from utter doom, would you complain about how peace in the middle east is a much worse problem, and that's what should really keep people up at night? you know, it's not hard to find something that's a bigger deal than any given problem mentioned here. ultimately, we're talking about cars and the auto industry, it's not the most important thing in the world.
so, what is your point in relation to this article?
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