REPORT: Saleen Inc. dissolves warranties, new owner takes over
Click above for a high-res gallery of the 2008 Saleen S302 Extreme
It looks like many of Saleen's customers may be out of luck when it comes to the warranties on their vehicles. MJ Acquisitions -- the firm that recently purchased assets from Saleen, Inc. including the rights to the S and Racecraft lines as well as Saleen's aftermarket parts division -- sent a letter to dealers informing them that they're not liable for warranty claims and that responsibility would fall on the former owners of the brand. However, Saleen, Inc. announced it has completely ceased operations and will no longer honor warranty claims, leaving it to owners to pay for any maintenance on their vehicles regardless of when it was purchased. This also includes any vehicles languishing on dealers' lots, so any unsold 2008 or 2009 Saleen or Racecraft models will essentially come without a warranty. The small amount of good news is the MJ Acquisitions will continue to provide parts to dealers, and any parts purchased after February 2, 2009 will come with a 12 month/12,000 mile warranty. Thanks for the tip, Chris!
[Source: soec.org]
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Reader Comments (Page 1 of 2)
jSn 11:05AM (3/09/2009)
Wouldn't they be legally responsible for the warranties and debts of the company they purchased?
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jim 1:00PM (3/09/2009)
Depends on the sales contract, if the seller assumes the liability for future warranty claims then that would inflate the value of the company, which would be in their interests. The risk for the buyer is a PR one if they choose not assume the warranty and the seller completely ceases operations.
Depending on the state the vehicle owners may have some recourse.
JDMlover 11:04AM (3/09/2009)
man that car looks like nothing but a bunch of add-on parts...gesh
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Franz 11:08AM (3/09/2009)
That doesn't sound right... you can just decide to not honor warranties? If that's the case, I feel sorry for the poor bastards who own these cars.
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Steve 1:24PM (3/09/2009)
I already feel sorry for people who own mustangs... Saleens are faster, but they still aren't the best bang for that much buck...
Spiel 1:26PM (3/09/2009)
Watch this go down to
FSM 11:09AM (3/09/2009)
good... maybe this will take a few Mustangs off the road permanently.
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Joe K. 11:10AM (3/09/2009)
What are we in third grade?!
Customers: "But you promised!"
New Ownership: "Nu-uh, I had my fingers crossed."
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John Johnson 11:13AM (3/09/2009)
Er, they can't do that. Buying a company means honoring ALL contracts, debts, etc.
Sorry, it won't be that easy, and I'm waiting for the first lawsuit to come. When the paperwork was signed for the car, it included that warranty. If the paperwork was provided by Ford, Ford is responsible. Otherwise the contract for selling the car is voided and the dealership will have to buy the car back.
This will be good. *grabs popcorn*
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CW 11:44AM (3/09/2009)
Er, yes they can.
According to the post MJ Acquisitions purchased the *assets* of the company, not the company itself. Big difference when it comes to responsibility for the liabilities. Companies do it all the time with acquisitions. Saleen on the other hand should have problems if it didn't sell itself lock, stock & barrell and tries to disclaim the warranties.
Brn 12:15PM (3/09/2009)
Generally agree with CW.
It seems that part of the agreement was that Saleen would continue to be responsible for the warranties. If that's the case, MJ is pretty much off the hook.
Saleen has ceased operations. They'll try that BS to get out of warranty claims. However, when they sold their operations, they probably did it knowing they were going to fold up shop. They can't sell their assets, keep their liabilities, and then just walk away from their liabilities. Line up the lawyers!
An afterthought, MJ could even sue Saleen for besmirching the name by not honoring liabilities.
John 12:44PM (3/09/2009)
The only problem here is that even if Saleen Inc. is still on the hook for the warranties it looks as though it's going to be nothing more than an empty shell with no assets to reach. Can't get blood from a stone.
mk 11:57AM (3/09/2009)
Saleen mustangs, or Gateway/MPC computers...
Warranty evaporation is no fun at all, and a breach of contract, but who are you going to sue, people who are liquidated, financially?
Sucks, period. Maybe those cars will be sold cheap, since they have no after-sale coverage. (not even Ford's warranty on the Mustang parts of the car, from what it seems...)
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Alex 11:15AM (3/09/2009)
good time to get a Saleen brand new on the thrift.
...just don't drive it too much.
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Alex 11:16AM (3/09/2009)
sort of like most aftermarket JDMs?
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BigMcLargeHuge 11:18AM (3/09/2009)
I wonder what they'll take on an S281E with no warranty?
I don't particularly want a Mustang, but there's a point at which I'll bite just on bargain basement value.
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Doug A. 11:22AM (3/09/2009)
They are prbly just hoping most people will bend over and take it instead of trying to fight 'em over it. Anyone wanting to sue to get their warranty back would prbly win though...
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Todd 11:30AM (3/09/2009)
"...announced it has completely ceased operations and will no longer honor warranty claims, leaving it to owners to pay for any maintenance on their vehicles regardless of when it was purchased. This also includes any vehicles languishing on dealers' lots, so any unsold 2008 or 2009..."
I have a feeling we are gonna hear that same sentence uttered by a different car company soon.
"GM needs to go into bankruptcy." - Republican John McCain Sunday March 9, 2009
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Mr.K 6:17PM (3/09/2009)
Quoting John McCain should never be quoted as fact.
MGS4TW 11:45AM (3/09/2009)
Sunday was the 8th, bud.
Today, Monday, is the 9th.