"Carroll Shelby Speaks Out" Article

[Richard Hudgins]

Hi Folks,

I really hate to enter into this discussion, but there are some points that need to be brought to light about the licensing bit.

In the early 90's, I designed a 90 inch car for a little company in Oklahoma. They were currently building a standard type reproduction unit (Meaning Mustang 2 front suspension and 8.8 rear end.) They were doing quite well and production was steady and the car was a nice piece overall.

They built the 90 inch car and won “Best engineering” award at the Run & Gun held at Firebird in the early 90’s. They were a class operation.

They contacted Mr. Shelby's organization about the licensing deal and really thought that it might help the cause for his charity and 1k on top was livable in the then current marketplace, particularly with the 1k being for a charity, therefore tax deductible outside of a normal cost basis. (Also, it would have certainly been good for their business to have his signature on the car.)

Well, the deal was a bit different then what the press spoke of.

1. The deal was with Shelby Licensing Inc. (Or something close), not CS or his heart fund.

2. There was nothing in the proposal that said or inferred that the 1k was to go to the Charity. Matter of fact, the gentleman running this place said that the distribution of funds was solely up to him and Mr. Shelby’s charity had nothing to do with it.

3. To qualify for the licensing deal, you had to put up 50k per annum "up front" and this would be credited against your production on an annual basis. (The statement from this gentleman was “If you cannot put up this amount of money, then you would not be a manufacturer that we could endorse.)

4. If you did not build 50 cars you still spend 50K per year. The deal had to be renewed each year and the deposit of 50k was due immediately at the end of each year.

5. If you built more than 50 cars per year, the price went to 1.5k per car and you had to pay them up front once again to maintain the licensing agreement. (Based on the previous years production)

6. What you got in this licensing deal was that they would not sue you for building the reproduction of the Cobra. There was no endorsement, no plagues, no press, nothing other than the assurance that they would not sue you. You could stay in business, that’s all.


Well folks, this little company did not go for the licensing deal. It was just a bit too much money for them to put up. They are now out of business. (Due to the owner developing lung cancer from constant exposure to the fiberglass operation and therein dying.) Maybe the heirs would have been able to carry on if they had of paid for the CS licensing deal. Who knows?

Now, the bottom line here is that not one piece of communication was from CS. It was all from others who represented him. I do not feel that he would have wished nor endorsed these draconian business practices. However, it was all done in his name and the deals fell apart due to greed and avarice of others.

I feel the industry was ready to pay homage, but I guess that his people were not willing to allow for deals that would have allowed the industry to stay in business.