By: AMY WILSON on December 11, 2000
Original Article: AUTOMOTIVE NEWS, VOL. 75, ISSUE 5907

Steve Saleen is a speed merchant.

Until now his primary business has been to supply Ford dealers with something they couldn’t get from the factory — a high-performance car that’s capable of going toe to toe with sports cars such as the Chevrolet Cor- vette. This year Saleen Inc. expects to sell more than 1,000 copies of the S281, a modified version of the Ford Mustang, at an average price of about $41,000.

Now Saleen, with the financial backing of partner Tony Johnson of Hidden Creek Industries, has set his sights on producing a limited-volume, high-performance supercar — the Saleen S7.

The step puts Saleen in company with another noted automotive industry figure, former Chrysler Corp. executive Robert Lutz and his plan to produce a powerful touring car under the auspices of Cunningham Motor Co.

Different routes
But while Saleen and Lutz have much the same dream — to build a small number of unique, high-priced vehicles — their business plans are different.

Lutz, president of battery supplier Exide Corp., envisions a virtual car company where engineering, manufacturing and assembly would be outsourced to a major supplier such as a Visteon or Delphi. The Lutz-Cunningham group aims to have a driveable prototype by mid-2001.

The fruits of his project, however, likely would not compete directly against the Saleen S7. The Cunningham car would be a 2+2 grand touring car with a 550-hp V-12 engine. Capable of speeds of more than 200 mph, that vehicle would cost more than $200,000. Saleen and his boutique firm plan to launch a performance-oriented supercar engineered, sourced and assembled almost completely under the auspices of the Saleen organization.

That greater oversight on the Saleen project is necessary to ensure high-speed performance and a car that leaves the production line ready for the racetrack, said Saleen, founder and president of Saleen Inc., a company that made its name tuning high-performance Ford Mustangs.

Pricey performance
The Saleen S7 — a 555-hp supercar with a price tag of $385,000 — is set to begin shipping to customers next June.

Already, nine people have made $100,000 deposits. Saleen still has to get the vehicle through government certification; at least two of the supercars will be crash-tested in the process.

Saleen plans to build 100 of the cars a year for the next four years, though the program’s break-even point will come with the sale of 80 to 100 vehicles, Saleen said.

The S7 project has the backing of Johnson, head of Hidden Creek Industries, a $6.5 billion enterprise with interests in major automotive suppliers, including:

• Dura Automotive Systems Inc., a maker of controls such as gear shifts with sales to North American automakers of $1.25 billion last year, ranking it No. 35 on the Automotive News list of top 150 suppliers.
• Tower Automotive Inc., a maker of suspension components and truck frames with sales to North American automakers of $2.04 billion last year, ranking it No. 19 on the top 150 list.

Those companies have little involvement in the S7 project, though Saleen certainly uses such suppliers for its custom vehicles.

Saleen COO Don Cuzzocrea said: “We manufacture either all of our own parts ourselves or they’re custom built for us by well-known Tier 1 suppliers. But anything we get is a proprietary design.”

The S7’s 7.0-liter V-8 engine is based on a Ford-cast all-aluminum engine block re-engineered by Saleen. British racing house Ray Mallock Ltd. assisted with the design and build of the space-frame chassis and packaging of the suspension system. Saleen also procured brakes from Italian maker Brembo and numerous high-tech pieces from companies in the Midlands area of England. Dura Automotive is supplying Saleen-specified foot pedals. Though a few commodity mechanisms — pieces such as levers and latches — are on the S7, virtually every part involved in driving the car or visible to the driver was designed and/or produced by Saleen, the company’s president said.

Saleen officials intend to position the S7 against pricier vehicles. Among them: the McLaren F1, the Porsche GT1 and the Jaguar 220, all of which retail for more than $1 million.

Saleen S7
Manufacturer: Saleen Inc., Irvine, Calif.
Engine: 555-hp, 7.0-liter V-8 based on a Ford block
Speed: 200-plus mph
Planned production: 400 cars
Price: $385,000

By: DUTCH MANDEL on September 25, 2000
Original Article: AUTOWEEK, VOL. 50, ISSUE 40

With his six-figure S7 supercar,
Steve Saleen aims to prove he’s not just another pretty tuner

The question resonates like a church bell at high noon: Does the world need another supercar? If Steve Saleen is tugging the rope, the answer is listen. And watch.

At Monterey in late August, we watched Saleen unveil the S7, his latest-and to date, grandest-effort in the specialty car manufacturing universe. S7 is aeroslick and represents for Saleen the culmination of more than 17 years of car building and car racing efforts. The recipe for S7, while simple, is nonetheless ambitious: It bakes in tried and true manufacturing processes with robust performance hardware. Its skin is wind-tunnel honed, its interior is a combination of utilitarian and exotic design. How well it runs is a question that must wait until the second quarter of next year when Saleen himself promises customer cars will be ready for delivery.

Sign up today and be first on your block to get yours for $375,000.

S7, Saleen touts, is going to be a supercar unlike any other. While that is an automotive mantra we’ve heard before-can you say Bricklin, DeLorean, Mosler, Weigert?-there are reasons to believe some of Saleen’s claims. What he says has a throw-weight behind it others did not. Take for example Saleen’s small-batch manufacturing experience as well as the ever-important financing courtesy of mega-busi-ness guru Tony Johnson, head of Hidden Creek Industries, a $6.5 billion company.

That Steve himself asserts that S7 will have performance superior to that of the upcoming Mercedes Vision SLR supercar is reason enough to raise hackles of skepticism. That he plans to charge half again the price of the SLR’s reported $250,000 for his car leaves us flat dumbstruck. Still, admire his chutzpah.

The S7 is so named for a combination of Saleen and the car’s 7.0-liter powerplant displacement. Though targeted at a highly rarefied market, its genesis is aimed at driving home a much larger point: That Saleen does not make “tuner” cars.

Saleen tells all who’ll listen that he’s a specialty manufacturer who undertakes far greater effort and overcomes greater obstacles than those who merely bolt on fiber wings or pop in performance chips. Aside from completely stripping each car with which he begins the Saleen transformation, his company has learned to leap through state and federal regulatory hoops, create shop and owner manuals, establish a dealer network and provide customer warranties, to name just a few steps. These efforts go well beyond what tuners can and will do for customers; they are the efforts of carmakers. By the end of this year, Saleen will have built in his history a total of 8000 cars.

“Given what we’ve done with Mustangs-our touching every element on these cars-this S7 is the next step,” says Saleen. “We were convinced [we could do this project] after we showed the Saleen SR, a Mustang derivative that debuted at the L.A. auto show, which had everything changed on it but the window glass.”

According to Saleen, that car was well-received, along with its $158,000 price tag. “That [SR] was our catalyst for the next generation of cars.”

His next-generation car, this car, starts with a simple tube-frame chassis and honeycomb construction, a basic layout with a long wheelbase and compact drivetrain that allows for a roomy interior. Saleen subcontracted chassis design and manufacture to Ray Mallock Ltd., a British firm that specializes in building race-winning touring cars.

Reasons for dishing out the chassis were many. First, RML knows racing; it has won multiple British Touring Car Championships-driver and constructor-in recent years. (No wonder S7’s chassis is something like you’d see in the sports car racing world.) Because it knows racing, it knows design, manufacturing speed and flexibility-keys to a project like this. As is the case with many race car builders, RML wants to grow outside its competition confines and into the “real” car world. Finally, RML gives Saleen a ready-made European delivery outlet for these cars; Saleen plans to have S7 sold worldwide, and as such it has been engineered with both left- and right-hand-drive models.

RML will supply Saleen with a complete chassis and suspension with uprights, parts that are broken down and air-freighted to Saleen’s Irvine, California, manufacturing center. Once in California, Saleen will drop in a Ford 7.0-liter, all-aluminum 427 engine mated to a six-speed ZF transaxle.

As for performance, well, Saleen makes super claims: The S7’s 550-horsepower engine will move it to 60 mph from a standing start in less than four seconds, with a top speed in excess of 200 mph. “The drivetrain is a derivative of both our racing and production knowledge that we’ve gained over 17 years,” Saleen says.

The S7’s interior can best be described as spartan elegant. Spread throughout is Connolly leather and suedes, brushed aluminum touch pieces and ever popular “jewel-like” gauges. According to Saleen, the effort is “to put a premium on the cockpit without compromising performance.” If you have a chance to sit in an S7, you’ll notice the cabin is slightly asymmetrical. The effect is to have the driver sit more inboard. But once in S7, you’re there.

“If you’re looking for ease of entry and exit, you may want to get a [Ford] Focus,” says Saleen with a chuckle, and adds that “once in the car, you’ll be well wrapped.” Call it a nod to its racing heritage, but S7 has a removable steering wheel that clearly aids getting in and out.

A rooftop scoop forces cooling air into the engine, which may be key for performance cars, but does little to increase rearward visibility. To that end, Saleen incorporates a rearward-mounted television camera and couples it to an in-dash monitor that gives the driver a clear view of what evil may lie behind S7.

As for its exterior design, it was a semi-collaborative effort between Saleen himself and longtime Saleen designer Phil Frank. Still, the absolute shape is the result of many hours working with a one-third-scale model in a rolling plane wind tunnel. Obviously, not an inexpensive undertaking, but one Saleen sees as paramount to making S7 both visually rakish and stable at high speeds.

Saleen sees S7’s competition measured two ways: price and performance. Naturally, less-expensive supercars are the Lamborghini Diablo, Jaguar XJ220, Lotus, Porsche and some Ferraris. Additionally, he points to the aged McLaren F1, a $1 million technological toy, as the kind of car his might run for pinks.

Saleen sees a three- to four-year production run for S7 with a total of 300 to 400 built for world-wide sale. Among his targeted buyers are newly rich e-commerce mavens, but he’ll gladly sell to anyone with the cash.

“The car is built with a big frame, and that will allow for the professional athlete and that level of demographic,” he says.

S7 will not be able to push aside its racing heritage. Eventually it will make its way to competition on the racetrack in sports car racing-the arena where Saleen feels most at home.

When Steve talks, he shifts between the first and third person. The effect is disconcerting, but what to do if your name is on the car? “The total concept is 100 percent Saleen. We wanted to do a high-performance, worldwide vehicle.

“I’ve wanted to do a mid-engined, two-seat sports car for a long time. We have been making a hard push to get people to understand Saleen is not a tuner. We want to produce vehicles as we do now-from cradle to grave-and this is a proof of concept for what Saleen has already done.”

Sorry to disappoint, Steve, but proof of the status you seek comes later, when and if the current iteration of Saleen is still in business, having made enough money to tool up and manufacture the car that comes after S7.

By: DAVID ORLOFF on September 18, 2000
Original Article: ORANGE COUNTY BUSINESS JOURNAL, VOL. 23, ISSUE 38

After Revving Up Mustangs, Saleen is Building Its Own Speedster

It’s good to have deep pockets when you want to sell a $375,000 car.

That’s why Steve Saleen said he is happy to have industrialist S.C. “Tony” Johnson as a partner in his Saleen Inc. of Irvine.

For more than a decade, Saleen’s company has bought Mustangs from Ford Motor Co., souped them up and turned them over to dealers who sell them as big-ticket toys to wealthy speed demons.

Now Saleen is crafting from scratch a car of his own that he hopes will rival the Ferrari and Lamborghini. While Saleen’ s Mustangs go for $30,000 to $50,000 apiece, the asking price for his new S7 is nearly $400,000.

Johnson is the president and chief executive of Minneapolis-based Hidden Creek Industries, a holding company specializing in the automotive industry. Hidden Creek counts about $6 billion in annual revenue from portfolio companies such as Dura Automotive Systems Inc., Tower Automotive Inc. and J.L. French Automotive Castings Inc. Johnson’s companies make engine components, windows, doors and other auto pans.

Johnson became an investor and partner in Saleen Inc. in 1993. Saleen, the company’s founder, president and a former professional race car driver, said he needed some capital to help the company out after recession a decade ago.

“To withstand for a longer time, I needed to have better capitalization,” Saleen said.

Back then, Saleen Inc. sold off one of its parts divisions “to keep the company going,” Saleen said. “That’s when I looked for a partnership.’s’

Saleen didn’t have to look beyond his own client list. Johnson is a car enthusiast and bought a Saleen Mustang in the early ’90s.

When the time came to make a deal, Saleen chose Johnson, who now serves as Saleen Inc.’s chairman.

“We are fifty-fifty partners,” Saleen said.

The Saleen Mustang is a high-performance version of the Ford sports car. The Saleen version has more horsepower, a racing suspension, new body trim and other custom pans. Saleen Inc. is considered a specialty vehicle maker under federal government guidelines and has put more than 7,000 vehicles on the road to date.

The company is 10 months into the development of its new S7, a 550-horsepower supercar.

“It’s a very fun project to do,”

Saleen said. Saleen designed the car with Phil Frank, a longtime product designer and consultant. The company used Ray Mallich Ltd., an English automotive company, to develop the car’ s chassis and recruited the University of Glasgow in Scotland to handle the car’s aerodynamics.

Unlike the development process for most cars, Saleen skipped the clay model step and went straight from computer-aided drawing into production. A number of manufacturers are interested in how he developed the car, he said, since skipping the clay model brought down the cost.

“It saved time and money,” Saleen said.

Saleen’s bid to make his own car grow out of his 16 years of bolstering Mustangs. Saleen Inc. designs, develops and makes a specialty product line with 2,000 performance and custom automotive products ranging from engine components and body pieces to floor mats and speedometers. For the body of the S7, Saleen incorporated the carbon fiber technology used in the Formula One race cars.

The S7 was unveiled last month at a car race in Monterey, Calif.

Saleen now is testing the vehicle for proper engine function and throttle response as well as the temperature and cooling systems. It will start speed tests this month and should finish testing by the end of the year, he said. Saleen will produce about 100 cars per year and they will be on select showroom floors in the second quarter of 2001.

As for the demand for the S7, Saleen already has orders for eight cars, he said.

Demand is “a lot higher than anticipated,” Saleen said.

Saleen said he expects to produce and sell 300 to 400 of the cars in the next four years.

The S7 will also be sold in 15 exotic car dealerships around the nation, he said.

All of the manufacturing and tooling of the vehicle is being done in Irvine, but to do so, the company needs more space, Saleen said.

It is currently looking for a 125,000-square-foot facility in Irvine to consolidate its six facilities. It has two buildings in Lake Forest, two in Huntington Beach and two in Irvine, including its headquarters, assembly line and showroom. The main building also houses the design and engineering operations as well as the customer service center and parts distribution facility.

“Irvine has turned into Detroit West,” Saleen said. Orange County is now home to the headquarters for 10 automotive brands, while Los Angeles boasts a few carmakers as well.

“We like Southern California. It is a hub of automotive enthusiasts and a supplier base,” Saleen said. Plus, he added, “Orange County is a very nice place to live.”

The move will come at the end of the company’s lease in March and will give Saleen Inc. about 25,000 more square feet of space. Saleen has 115 employees, a number that won’t change much when the full-scale production of the S7 begins. Saleen said the current staff can handle most of the work.

The company’s operations produce five Saleen Mustangs per day. Saleen has made a few hundred performance Ford Explorers and a few Ford Contours. Saleen also made a performance minivan out of a Ford Windstar for comedian Tim Allen.

“We’ve done a number of items for him,” Saleen said.

Allen is a racing enthusiast. The star of “The Santa Clause” is a partner with Saleen in Saleen/Allan Speedlab, a racing team and development division of Saleen Inc.