1957 Monaco RoadsterThe laurels of KHT great success in 1957 with the Monaco Coupe soon proved to be a curse. Rare examples lasted past 20,000 km. Gearboxes shed their teeth and let go regulary, and the problems did not end there. Horror stories of a Monaco sending a piston to the crank case or worse yet - through the hood were alarmingly common. First engine ever built by KHT turned out to be a disaster at worst of times. At best of times, however oil leaks were common, as well as clutches starting to slip at as little as 1000km of normal driving. Problem with the transmission was caused by the fact it was the same pickup truck unit found in the Wyoming, which never was intended for the torque of the 6 liter v12. Solution was needed, and fast.
Kaspar secured a contract for replacement engines from IMP automobile, the gloriously daft and powerful BL12-NGH, a 7.3 v12 producing just under 400hp. To much surprise of the team, which still was a very ambitious, but quite rubbish enterprise, the colossus did not fit the engine bay and had to be shelved. A V8 was proposed, but no suitable engines were found, and using URV units found in the Targa Florio was out of the question due to shear rarity of the Lynx it was found in, after all, the production of Targa Florio was halted only because KHT could not find more engines.
Having experience with the GSI 6 cylinder unit, it was proposed to exclude the KHT's v12's problems by going back to basic design, and the engine was dropped all together after only 7 months of production, replaced by the 3 liter engine which was just a heavily modified Wyoming unit, still OHV, it now featured a more efficient carburettor, exhaust and a re-furbed camshaft, finished off by aftermarket pistons and conrods, chugging 98 petrol, still mated to the 4 speed manual. Now boasting a moderate 173hp at CR of 9.5:1, the performance drop was devastating.
0-100km now took 9.2 seconds, with top speed plummeting to 210kph. The car has lost all it's sportscar ambition, becoming a simple coupe. The rich and successful of this world lost interest in Monaco as v12 was no longer an option, so luxury was also dropped, replaced by premium quality interior and a basic radio. With simple modifications and add-ons a 2 seat drop top body was introduced as an option, and some of the fine exterior detail also being removed. Away went the chrome trimmed rear spoiler and front lip, along with the foglights in the grille, the hood bulge also was removed as it was no longer needed to house the engine. A promising supercar up-start became a salvage of a sports-car, but almost 1/3rd more affordable, now costing $32,000 instead of $45,000 for the 1st gen, Monaco gen2 enjoyed a moderate success both in Europe and USA, where most of them were converted to Chevrolet v8's. This was a very close call for KHT, and a backup strategy was introduced, as a medium sized car repair shop was opened to support the tiny factory in financially troubled times.
Eventually GSi company figured out who and why was ordering their parts by the boatload, and pressed charges. KHT managed to plead not guilty by providing a massive list of changes done to the engines that arrived to the factory as not much more than bare engine blocks, but still, it was clear this could not continue and in 1959 last Monaco saw light as the production was stopped.