Thursday 29th May 2014

Mastretta RIP?

Founding brothers walk away from sports car firm amid management wrangles

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Most probably thanks to the Top Gear trio, a great many people know about the Mexican car company Mastretta and its MXT sports car. But now it could been in jeopardy as the Mastretta brothers Carlos and Daniel have walked away, citing "poor strategic decisions, failure to achieve any of the agreed goals and wasted valuable funds" by the new management team in a statement issued today.

Not happy at Hot Wheels model evidently

This 'new management team' comprised a few parties. On launching the MXT in its home market, partners were added to the Mastretta project including Latin Idea Ventures. To further consolidate its position last year, the Mexico Ventures Fund and Corporacion Mexicana de Inversiones de Capital also joined. With the involvement of these latter two Government backed companies, the brothers "accepted the need to become minority shareholders, asking only in return for a balanced and functional Board of Directors that could offer efficient and proper management of the company."

According to a press release issued by the brothers the managers of Latin Idea Ventures, Mr Miguel Angel Davila and Mr Humberto Guzman Gonzalez Zesati, were reputedly granted all governing power. According to the Mastretta brothers the executives "were both irresponsible and negligent in the way that they undertook their duties." Despite warnings about the potential outcomes, nothing was changed.

Now the MXT development and production has ceased just as the car approached testing for Small Series Type Approval in Europe (EC SSTA). Therefore two options now face Mastretta; Latin Ideas may continue regardless, but producing a Mastretta without the founding family could be challenging. The alternative is that another agreement is reached, the Mastrettas come back on board and implement the design adjustments that are prepared for the MXT. Given the finality of the their statement ("we will now move forward, both in defence of our heritage, and with truth and reason") though, it does suggest an irrevocable split.

 

[Hamsternator]

I always felt the MXT looked like a replica of the car it wanted to be. Like when a mk2 MR2 is turned in to an F355, and all the dimensions and scales aren't quite right.

Anybody know what price they were targeting in Europe?

[anonymous-user]

Ah, the legendary tricky genesis of the low volume sports car strikes again.............

[Malachimon]

That didn't last long, but what did we expect from a low CC mexican made sports car?

[soad]

Reminds me of a Smart Roadster Coupe.

[DannyScene]

I like the car a lot in all honesty, great looking thing IMO

[Contigo]

I read this as Maserati RIP at first, nearly choked!

[goron59]

Contigo said:

I read this as Maserati RIP at first, nearly choked!

Me too!

[SteveHindle]

Max_Torque said:

Ah, the legendary tricky genesis of the low volume sports car strikes again.............

It's like going to the bank for a loan for your daughter's wedding. The manager says 'sure. we'd love to help, she's a great girl, just sign away the deeds to your house, oh, and we'll want to plan it for you . . . . A year later, the limo turns-up to take the bridesmaids to the church and you discover that they've employed Max Clifford as the driver; you just know that somebody's going to get f' . . .

And that's pretty much what's happened at Mastretta. But it doesn't mean that it's 'RIP', far from it. There's still a strong future for the MXT and the brand as a whole, it's just going to take the principal equity partners to understand that the market for low-volume and specialist cars demands more than sharp suits alone.

Every one on this forum who is involved in business knows that success is determined by having a costed plan that allows you to deliver your product or service at the right price and on time whilst also being able to plan ahead. And that's the essence of the agreement we had. We knew we had to change the body moulds and we knew that we needed to achieve European Small Series Type Approval in order to achieve not only the sales volumes required to create a return on investment, but also an acceptance of Mastretta as a serious entrant in the affordable (think Elise) sports car market. Unfortunately, the management that the vc's imposed on us cancelled the moulds and cancelled the testing programme because they didn't think either were necessary, and as a consequence, the agreed funding for these, and to maintain production has been withheld.

But the good news is that we're ready to go to testing, and the design work and engineering for the new, lighter bodies is also complete, so providing we can bring everyone to the table and scrap the 'management by committee' approach in favour of returning to the empowerment of a lead individual, then there's no reason why the MXT won't be on the streets, boulevards and autobahns by next spring.

Steve Hindle
Brand Manager, Mastretta (Europe)

[Chim]

Nor really sure about this, as said earlier, looks a bit like a smart roadster, would need to see one in the flesh me thinks.

Thanks for the info from the horses mouth so to speak, nice to see.

[GTRene]

not a bad looking car, hope they find a solution.