Activities By Shelby Automotive
                  in Ionia   (8-28-67 thru 10-24-67)

It has been necessary that one or two major meetings be conducted each week so that progress and follow-up be established on all phases of engineering and production of the 1968 Shelby program.  The major meetings are attended by Shelby Engineering and management, Smith Engineering, purchasing, production, material control, and management.  The meetings were found necessary because we found that:

a) timing schedules were not being met on design, release, prototype parts procurement, production parts procurement, production line installation.

b) The five preproduction or pilot cars were not being built on schedule, nor were they being built according to the accepted usage or quality. i.e. they were being built as show cars.

1) Colors are not matched but rather the whole vehicle has been repainted.
2) All parts are hand fitted.
3) The proper method of installing tail lights has not been developed.
4) "One time" modifications are being used.

c) Changes are being made to the base D.S.O. vehicle, to styling concept on [fiber]glass parts, and engineering approach without Shelby Engineering consent or approval.

We find we must constantly review the vehicles, the procurement schedules, etc. to insure that the vehicles will be built properly.  To date the vendor is not in a position to build production vehicles, despite the fact that the strike has delayed the job #1

date by approximately six weeks.

Examples:

1. Change to Styling on hood front contour

2. Change to Engineering concept on the hood (They would not open front scoops)

3. Changed base vehicle.  Moved horns because their part had been designed with interference

4. Have not developed ???? method of dimpling rear panel for tail lights

5. Have repainted first three cars since they could not (or would not) match the paint.

6. Modified the air cleaner tray by changing the hold down.  We had designed an offset which they didn't understand.  They changed the design then discovered the offset was required in order that the tray fit both the GT 350 and GT 500

7. The first (2) show cars they prepared without our inspection were so poor mechanically and so late in being finished that:

a) no repairs could be made.

b) Ford management along with Mr. Shelby were embarrassed by their appearance in shows.

Note: These are by no means the only cases.  They are typical cases.

In addition the loose of tools and machinery (material was apparently required in Los Angeles) requires that our people (Shelby) work under a very strict handicap until the items can be ordered, approved, and delivered.

R...   10-24-67