Mastretta, Mexico's first car company, is in danger following a split between the founding brothers and investors, according to a report from Autocar.

The two brothers, Daniel and Carlos Mastretta, issued a statement earlier this week announcing they were leaving the company they founded in the 1980s due to a dispute over funding. According to Autocar, the brothers were seeking additional money to get their two-seat, turbocharged sports car, the MXT, certified for small-scale sales in mainland Europe and the United Kingdom.

As part of the deal, the brothers agreed to reduce their shares in the company, releasing control of the company to a group called Latin Idea Ventures, which promptly installed its own CEO.

The Mastrettas said in their statement:

"It is the contention of the Mastrettas that the new management team made poor strategic decisions, failed to achieve any of the agreed goals, and wasted valuable funds that should have been earmarked for development. It is also alleged that despite a contractual agreement being in place, investors have withheld the second installment of funding.

Throughout the last 12 months, the Mastrettas maintain that they have repeatedly warned their board of the potential consequences of management policies, including delays to the approvals program, but with no action being taken on either this, or the implementation of the subscription agreement, they felt that they had no other choice than to remove themselves from the business until their concerns are addressed."

According to Autocar, a third investor group associated with the Mexican government, will mediate between the Mastrettas and LIV.


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 17 Comments
      bootsnchaps60
      • 7 Months Ago
      I'd walk away from this also. Maybe they coul partner with SAIC and stick an MG badge on this.
      Luke Colorado
      • 7 Months Ago
      It's a good looking car, actually.
        Narom
        • 7 Months Ago
        @Luke Colorado
        anything that looks like the smart roadster is not a good car.
          Losferatu
          • 6 Months Ago
          @Narom
          It would seem you're not in the majority
          Narom
          • 6 Months Ago
          @Narom
          lol Indeed. Seemingly people love a plastic car, then again this is an American blog and being plastic and fake is the American way.
        Jarda
        • 7 Months Ago
        @Luke Colorado
        lol
      johnnyhedwardsjr
      • 7 Months Ago
      Other than Tesla, that was an electric car company ahead of it's time, why do start ups always bank on two sweater sports cars? Especially cars based on other cars such as lotus and the Miata and corvette. I never understood this strategy. If I was going to start a car company I'd focus on sales leaders such as a midsized car that is priced in the $20,000 - $30,000 range with either a hybrid or all electric power train. Then expand the same platform to build a small SUV and two door 2+2 sporty vehicle with the same power train and almost identical interiors. After those cars are successful THEN I'd build a $70,000 halo car.
        Willie
        • 7 Months Ago
        @johnnyhedwardsjr
        problem is to make a 20,000 car it cost it takes millions/ billions of dollars in tooling. while a hand made car can cost more to make there is less upfront cost.
        Wes Sterling
        • 7 Months Ago
        @johnnyhedwardsjr
        You have to sell smaller cars at scale which no startup can afford. Starting with something premium, manufacturers can afford to charge high margins while testing technology they're developing at scale that makes manufacturing and any possible recalls relatively easy to handle. Doing a mass-market vehicle first is a bad strategy; not only do you face competition from companies that invested billions into developing their competing products and their marketing, you would also have to invest into huge factories without any traction to speak off. Mass market cars also demand huge advertising budgets. One more thing these companies don't have. Halo cars do several things. They put the company on the map of car-guys with little to no marketing. They gauge public's reaction to design, technology etc. They can serve as a proof that the team is actually capable of building a working product, thus making it interesting to potential investors.
        b.rn
        • 7 Months Ago
        @johnnyhedwardsjr
        johnnyhedwardsjr, I suspect it's a reflection of the market. Someone looking for something a little exotic is more willing to take a chance on something new if it stands out. Mid-sized sedan buyers are looking mainstream and are less likely to purchase from a startup.
        johnnythemoney
        • 7 Months Ago
        @johnnyhedwardsjr
        This car is not based on the Elise, MX-5 or Corvette, and it's not electric either.
        Dom Enic
        • 7 Months Ago
        @johnnyhedwardsjr
        it's a lot harder to build a midsize sedan from scratch. In order to make money of it you would require a much greater investment into production facilities as well as a much greater workforce. A small sports car is a lot easier to build and has potentially much greater margins... That's why
        bootsnchaps60
        • 7 Months Ago
        @johnnyhedwardsjr
        I guess the idea is build an expensive niche car first to draw attention and generate cash but I can't see how this would generat e enough to support production of more "normal" mass appeal cars.
        johnnyhedwardsjr
        • 6 Months Ago
        @johnnyhedwardsjr
        What all of you guys are saying makes perfect sense... in theory, however, I don't really know of an example of any car company that actually succeeded in this way... other than Tesla... and that was because the company was selling something that nobody else was offering at the time, which was an all electric power train sports car. However, what if a small company took the SEAT route and purchased parts from other companies and the Tesla route by offering an attractive power train/ gas mileage option in a more attractive, fun to drive vehicle. They could purchase hybrid gasoline technology from Toyota or all electric technology from Tesla for the power train and they could get a company like Mazda or Honda to supply the platform and underpinnings? They could purchase an older vehicle's platform like the last generation Civic or the last generation Mazda 6. They could purchase both the power train and chassis from the other companies and assemble the body and interior in a separate facility. That would cut down on a lot of the costs.
      Britt Benston
      • 7 Months Ago
      It's too similar to the more established Lotus offerings, so why buy it over Lotus? It doesn't look/feel exclusive, so you could count that out. And worse, Lotus doesn't move a lot of units, so Mastretta may not have chosen the best positioning. More obviously, there are going to be consumer trust issues because it will be viewed as a Mexican startup, for which there's no perceived track record, even if the brothers have been in the business awhile.
      Losferatu
      • 6 Months Ago
      Sad. I want this company to succeed.
      bootsnchaps60
      • 7 Months Ago
      I'd walk away from this also. Maybe they coul partner with SAIC and stick an MG badge on this.
    • Load More Comments