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China wields coronavirus to nationalize Saleen manufacturing

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  • China wields coronavirus to nationalize Saleen manufacturing

    Government officials in Rugao, China, used the coronavirus pandemic to conduct a takeover of an American-owned car company


    China enticed an American entrepreneur with the opportunity of helping build a cutting-edge automobile company in the world’s largest car market, then used the uncertainty cast by COVID-19 to steal his intellectual property, the businessman says.

    Steve Saleen, founder of specialty high-performance sports car manufacturer Saleen Automotive, and his partner Charles Wang, a Chinese immigrant and former attorney at a New York law firm, were approached in late 2015 about forming a joint venture with the city of Rugao to manufacture automobiles.

    The deal “offered, I thought, from my standpoint, a great opportunity to help build a global company,” Saleen told FOX Business.

    The agreement that was reached called for Saleen to contribute his brand and trademarks, designs for three engineered vehicles and experience, know-how and technology in manufacturing automobiles, he said. Those contributions were valued at $800 million.

    Wang, who helped structure the deal, would serve as the company’s chief executive officer.

    For their efforts, Saleen, Wang and their partners would receive two-thirds ownership of the newly formed company called Jiangsu Saleen Automotive Technologies.

    The city of Rugao’s government, which owned the remaining third, was responsible for providing $500 million of capital and $600 million in subsidized loans over three years to fund the operations and build a manufacturing facility. Rugao, located on China’s Eastern seaboard in Jiangsu province, is about 125 miles north of Shanghai.

    “It sounded like a great deal to us, so we went along with them,” Wang said, adding that his experience enabled him to set up the company’s corporate governance and articles of incorporation in accordance with Chinese law.

    By early 2020, everything was going according to plan. The initial product, an SUV, was in certification and the employee headcount had swelled from three to nearly 1,000. The factory, armed with 470 state-of-the-art robots, was ready for production.

    Then the COVID-19 pandemic struck.

    With both Saleen and Wang stuck in the U.S. as flights to China were grounded, the Rugao government seized on an opportunity to “nationalize the company,” according to Saleen.

    On June 29, the city sent six police cars with sirens blaring and vans full of private security forces to raid Jiangsu Saleen’s manufacturing facility and offices.

    The forces ordered employees to leave and shut off the water and electricity when some refused to do so. Executives, who were Chinese nationals were forced to resign or face consequences from Rugao's government, Saleen told FOX Business. The remaining employees were terminated.

    Two employees, Frank Sterzer, a German national who was vice president of manufacturing, and Grace Yin Xu, a Chinese national in charge of corporate affairs, were detained.

    While Sterzer was released after six hours when he contacted the German Embassy with a cellphone that wasn’t confiscated, Yin Xu was held for a month after she refused to corroborate the local government’s claims that Wang tried to embezzle money.

    Rugao authorities also claimed Saleen’s technology was worthless and false information was given to secure a higher valuation, he told FOX Business.

    Without Saleen’s knowledge, officials had previously filed 510 patents for the intellectual properties he developed – 120 of which were already awarded, including his signature supercharger. Many of the filings didn’t even list Saleen as the inventor.

    The shareholder who represented the city’s one-third stake held an illegal board meeting and removed Saleen and Wang as directors of the firm, leaving the foreign shareholders without representation, he said. Under Chinese corporate law, a board meeting cannot be held without a quorum of 51 percent of shareholders.

  • #2
    He should have known better than to make a deal with those Communist shitbags.
    Originally posted by racrguy
    What's your beef with NPR, because their listeners are typically more informed than others?
    Originally posted by racrguy
    Voting is a constitutional right, overthrowing the government isn't.

    Comment


    • #3
      Originally posted by Broncojohnny View Post
      He should have known better than to make a deal with those Communist shitbags.
      lol. That's what 95% of the comments said. It definitely shows that the Chinese govt cannot be trusted.

      Comment


      • #4
        Hope it's a lesson learned for any company wanting to do business with China.

        Comment


        • #5
          Yea, everyone could have told him this was going to happen.

          Comment


          • #6
            All Ford guys should be happy now. Saleen hasn't been Saleen for along time

            Comment


            • #7
              He started out with a great dream and decent product, but his after market parts were horrible. Nothing fit properly, the bumper covers had to go through a multitude of steps before you could apply paint. Shipping was very expensive on all parts, his wheels had poor chrome applications and most always had the nickle peeling. Unless you bought a Saleen off the showroom floor and if they had any of these issues you MIGHT be able to get them addressed.
              That being said, the Fox S-351 and SN95 S-351's were bad ass cars, they would show up to a carshow or track and you hear that SC whine and serious cam lope, it was an instant hard-on.
              IMO Steve Saleen was very influential in the Fox and SN95 aftermarket starting a revolution and responsible for more than a handful of private up start companies like Steeda, Rousch*, etc. I believe once he got hooked up with that Tim character (no pun) and they started racing, he lost his grip on his company. He was never the same and his later products showed promise, but they could never get back to the hey days of his early success. He sold it, the new owners went bankrupt, he bought it back, just a shit show after shit show of bad decisions.




              *Not really comparing products, the man in the hat has roots going way back to real racing and engine building, his success in NASCAR and his relationship with FORD was far more reaching that Saleen or any other company has achieved.
              Originally posted by Silverback
              Look all you want, she can't find anyone else who treats her as bad as I do, and I keep her self esteem so low, she wouldn't think twice about going anywhere else.

              Comment

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