How the Shelby program ended

[Coralsnake]

One of the other threads asked how the Shelby program ended? Much has been written and incorrectly repeated in my humble opinion. I'm sure some competition from other Ford models was a factor. To say Shelby was not involved is inaccurate. Shelby was planning new models and new options right up until the end. This memo should help. It is by no means the only proof, because there are a lot of memos leading up to this decision by AO Smith. Without Smith's assistance, the program was scrapped.

[Greg]

To compliment your statement, I believe Shelby was more focused on the 67-70 models than he was on the 65/66 in terms of styling and was determined to set "HIS" cars apart from ford.  IMHO the cars became a Shelby and not a mustang turned into a Shelby as many reference the 65/66's to.   

[427heaven]

I feel it was the other way. SHELBY was a racer first 65-66 complimented his ideas. When Ford became more in control of the cars after the pinnacle 67 year Shelby was pissed things didn't go his way any more and the once shining star burned out way to quickly

[98SVT - was 06GT]

I feel it was the other way. SHELBY was a racer first 65-66 complimented his ideas.

This - CS was into performance first and styling was way down his list. As emissions regulations set in it wasn't financially wise to expend millions of development money on increasing Shelby performance for such a few cars. Styling was Ford's answer to set the Shelby apart. Problem was they were heavier with the same hp you could get in any Mustang so their perch on the top of the performance ladder died and sales tanked. Ford only had the project 2 years before it failed to turn a suitable profit. 68 & 69. ALL the 70 Shelby's are retagged 69s.
Today the GT350 has the required performance increase over the regular Mustang so they are sought after again.

[Shelby_r_b]

Great information - thanks!

[FL SAAC]

agree with all of the above and will add:

ford became more involved with development and costs.

ford took moneys away from the shelby program and funneled it towards other of their products for example the boss 302/429.

thus less cash flow into the shelby program and his pocket.

ford offered models that would keep up with a shelby at a lower cost to the market. why buy a shelby?

the times where changing, peoples and insurance companies attitude towards performance vehicles was not positive. translating into higher premiums and less performance vehicle sales.

the e.p.a. and emission regulations came in.

shelby pursued other opportunities or interests and thought that the controlling ford management was not needed. he could do better with out them. 

his interest with his big game hunting in africa also pulled him away from the ford/shelby program and from those controlling ford managers.

be careful what you wish for, as he got what he wanted and ford mutually terminated terminated their agreement by july.

then everyone lived happily ever after.....

[98SVT - was 06GT]

Timeline from Motor Trend - Just the Mustang stuff

January 1965: The 1965 Ford Shelby GT350 debut.

February 1965:  The Shelby Mustang GT350 also wins its first race in Texas.

October 1965: Shelby American proposes a special Hertz rent-a-racer, and builds a GT350H prototype.

November 1965: Hertz likes the GT350H and gives Shelby American a contract for 200 cars.

December 1965: Hertz ups its contract for GT350H models to 1000 units.

November 1967: Shelby American moves to Torrance, California.

September 1969: As sales slow, the Shelby Mustang project ends. Leftover 1969 models are updated to 1970 specifications.

October 1969: Shelby fields his last Ford team race car in Trans-Am at Riverside.

December 1969: The Shelby Automotive Racing Company closes.

February 1970: Ford and Shelby end their racing agreement.

1974: Believing that government regulations were going to end the days of performance, Shelby leaves the U.S. to spend time living in South Africa.

April 1988: Shelby sues Ford for using the GT350 moniker on its 1984 20th Anniversary Mustang.

March 1990: Shelby's lawsuit with Ford is settled out of court. The lawsuit is attributed to a "misunderstanding."

March 23, 2005: The Ford Shelby GT500 is introduced at the New York International Auto Show. It's the first Mustang to wear the Shelby name in 35 years.

October 2007: Shelby and all the companies bearing his name are sued by Denice Halicki, widow of "Gone in 60 Seconds" creator H.B. Halicki, over the use of the name Eleanor. But Shelby owns the trademark, and the case is thrown out on a summary judgment.

April 2, 2008: Shelby is sued by customers of Unique Performance, a manufacturer of GT500E and other continuation cars Shelby partnered with, after Unique fails to deliver cars and is shut down for alleged title washing. . Shelby tells Mustang Monthly that "I never accepted a dime for any of these cars until they were delivered to the customer."

April 14, 2010: Shelby American releases the 45th anniversary 2011 Shelby GT350. The GT350 gets new suspension bits, and adds a Whipple supercharger the Mustang's 5.0-liter V-8, bumping power to 550 hp and 490 lb-ft of torque.

April 5, 2012: On the 50th anniversary of the original Shelby Cobra's 1962 New York auto show debut, Shelby rolls out the Shelby 1000 at the 2012 New York event. With an astonishing 950 horsepower, the Shelby 1000 is a culmination of 50 years of the trials, tribulations, and triumphs of a company and a man dedicated to building some of the greatest performing cars of all time.

May 10, 2012: Carroll Hall Shelby passes away at Baylor Hospital in Dallas. He was 89.

[FL SAAC]

aloha

98svt was 06gt

well said but truly came down to the lack of support and most importantly the benjamins

September 1969: As sales slow, the Shelby Mustang project ends. Leftover 1969 models are updated to 1970 specifications.

October 1969: Shelby fields his last Ford team race car in Trans-Am at Riverside.

December 1969: The Shelby Automotive Racing Company closes.

February 1970: Ford and Shelby end their racing agreement.

1974: Believing that government regulations were going to end the days of performance, Shelby leaves the U.S. to spend time living in South Africa.

agree with all of the above and will add:

ford became more involved with development and costs.

ford took moneys away from the shelby program and funneled it towards other of their products for example the boss 302/429.

thus less cash flow into the shelby program and his pocket.

ford offered models that would keep up with a shelby at a lower cost to the market. why buy a shelby?

the times where changing, peoples and insurance companies attitude towards performance vehicles was not positive. translating into higher premiums and less performance vehicle sales.

the e.p.a. and emission regulations came in.

shelby pursued other opportunities or interests and thought that the controlling ford management was not needed. he could do better with out them. 

his interest with his big game hunting in africa also pulled him away from the ford/shelby program and from those controlling ford managers.

be careful what you wish for, as he got what he wanted and ford mutually terminated terminated their agreement by july.

then everyone lived happily ever after.....

[Chris Thauberger]

One of the other threads asked how the Shelby program ended? Much has been written and incorrectly repeated in my humble opinion. I'm sure some competition from other Ford models was a factor. To say Shelby was not involved is inaccurate. Shelby was planning new models and new options right up until the end. This memo should help. It is by no means the only proof, because there are a lot of memos leading up to this decision by AO Smith. Without Smith's assistance, the program was scrapped.

As usual Pete presents a document that is a piece of the puzzle, and then EVERYBODY else piles on with speculation and innuendo. Now if Tony would just add a picture of a model with the letter it would be complete.

You guys have anything to backup you theories?

Chris

[FL SAAC]

yes

One of the other threads asked how the Shelby program ended? Much has been written and incorrectly repeated in my humble opinion. I'm sure some competition from other Ford models was a factor. To say Shelby was not involved is inaccurate. Shelby was planning new models and new options right up until the end. This memo should help. It is by no means the only proof, because there are a lot of memos leading up to this decision by AO Smith. Without Smith's assistance, the program was scrapped.

As usual Pete presents a document that is a piece of the puzzle, and then EVERYBODY else piles on with speculation and innuendo. Now if Tony would just add a picture of a model with the letter it would be complete.

You guys have anything to backup you theories?

Chris