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| SMS VS MJ |
Steve Saleen and SMS Supercars have announced that they have filed a lawsuit against MJ Acquisitions. The press release sites Saleen's displeasure with the way MJ has been handling warranties for existing Saleen vehicles and the fear that these moves have damaged the Saleen name. For those who haven't been following this storyline Steve Saleen left the company he founded, Saleen Inc, earlier this year. Many of the remaining assets of the company were then sold to MJ Acquisitions. In March MJ Acquisitions announced they would no longer honor warranty claims for existing Saleen vehicles or parts. Soon afterwards SMS Supercars announced they would, without any legal requirement, honor those warranties themselves. It looks like things have just gotten even more sour since then, leading to this lawsuit. We'll keep you updated, for now you can read the full press release by SMS Supercars below.
Steve Saleen and his company, SMS Supercars, announced today that they have filed a lawsuit in the Superior Court of California, seeking an order directing MJ Acquisitions Inc. to cease and desist from promoting their products under the Saleen name in any form. Concurrently Mr. Saleen is also seeking additional related remedies from the company that formerly carried his name. This action is an additional move to continue to protect the name, reputation, and brand value of Steve Saleen and to reassure his loyal customers, dealers, and car enthusiasts that only Steve Saleen's SMS Supercar performance vehicles and products are genuine and deserving to carry his name. Steve Saleen gave up control of Saleen Inc., the company he founded, in 2003 and in the spring of 2007 left it completely without any further management association. The non-enthusiast corporate executives sold a number of assets to a company by the name of MJ Acquisitions, Inc., changed the company's name, and in early 2009 ceased operations altogether.
After having left his previous company, Mr. Saleen started SMS Supercars in 2008 and unveiled his newest creation, the SMS 570 Challenger, in January of this year. After having participated in the 2009 National American Dealers Association show as part of the official Chrysler Group display, Steve Saleen's SMS Supercars successfully launched the SMS 570X Challenger and the new SMS 296 Supercharger at the New York International Auto Show in April of 2009, where many media ranked them among the stars of the show. Steve Saleen's SMS 460 and 460X Mustangs were announced at the 45th Mustang Anniversary show in Alabama in April, with more info and images to be released this weekend at the Mustangs Northwest Roundup in Seattle and during the 2009 Mustang Week in Myrtle Beach starting Monday, July 20.
In April 2009, Steve Saleen announced support for his customers and dealers affected negatively by the demise of the company that long carried his name. In a statement issued in April, he said: "The company I launched a long time ago announced it will no longer honor its product warranties, nor will the acquiring company for those assets, MJ Acquisitions, Inc. This kind of 'customer treatment' damages my reputation, misleads customers and cannot be left unaddressed." Steve Saleen announced that SMS Supercars would guarantee the warranties that MJ Acquisitions abandoned. Mr. Saleen went on to say: "It amuses me that faceless executives and wannabes are trying to misrepresent themselves as some kind of continuation of Saleen, which they are not. SMS Supercars is the true Saleen. It is the only company I endorse, the only company entitled to use my name and legacy, and the only company that carries my signature on its products, because they are my products. The legal action we have undertaken today will emphasize once and for all that the only genuine Saleen products are mine.
Update: Mike Shields, President and CEO of Saleen Performance Vehicles wrote this rebuttal to the lawsuit by SMS
"We're dismayed by the lawsuit that was filed this weekend by Steve Saleen, and even more disappointed by the fact that it appears to be an attempt to disrupt the debut of our new Saleen vehicle this week.
"Our company's purchase of certain assets in February entitles us to use the Saleen brand for our superchargers, aftermarket parts and high performance vehicles, and we look forward to continuing the legacy of great Saleen products that fulfill the brand promise of 'Power in the Hands of a Few'.
"While this lawsuit is an unfortunate minor distraction, our dedicated team of enthusiasts is excited about not only the launch of our exciting new Saleen car later this week, but also on working closely with our loyal dealers and customers to ensure their satisfaction. As I stated last week during a media teleconference, we are working to resolve past warranty issues and have every intention of going forward with a warranty policy that will provide confidence to all our valued stakeholders.
"The Saleen Performance Vehicles brand is not about one person. It represents a legacy of high-performance vehicles that has developed over the past quarter century, and we feel privileged to be entrusted with that legacy going forward. Everyone in our company takes that responsibility seriously. That's why we're so enthusiastic about the future of our company, and why we can't wait to begin its latest chapter this week at Myrtle Beach."
Related:
SMS 460X Mustang
SMS 460X Mustang Pictures
SMS 25A Mustang
2009 Saleen Dark Horse Pictures
Saleen Inc for Sale!
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