Is Trust / Greddy out of business?

[Whizbang]

http://www.autoblog.com/2008/09/10/japanese-tuning-firm-trust-greddy-declares-bankruptcy/

Japanese tuning firm Trust/Greddy declares bankruptcy

Posted Sep 10th 2008 3:32PM by Damon Lavrinc
Filed under: Aftermarket, Tuners, Government/Legal, Japan


The market for aftermarket parts from Japan has been declining for well over five years, due in part to decreased demand both at home and abroad and the rising rates of Chinese knock-offs and other inexpensive (and dubiously built) components.

Today, one of the world's largest performance parts companies, known as Trust in Japan and Greddy here in the States, declared bankruptcy. According to various reports, Trust is approximately $60 million in debt and, after reporting a serious decline in sales since February 2008 and amassing $43 million in loan payments, filed for bankruptcy in Tokyo District Court.

Trust has been around since 1976, employs almost 200 workers and had been dealing in everything from CARB-legal exhausts to turbo systems when Greddy Performance Products was founded in the U.S. in 1994. There are several firms that will step up to fill the need of enthusiasts, assuming that Trust doesn't try to reorganize, but with the aftermarket industry down overall, we suspect this won't be the last time we'll here about a large tuner going under.

[Whizbang]

just seeing if anyone else has heard anything about this

[Miata_mx5]

Yeah, it is true. They filed for Chapter 11. Just like APEXi did 2-3 years back. APEXi then got bought by APEXERA and still sells parts.

I know quite a few japanese tuners rely on Greddy parts, including Mr.Amemiya-san.

If they don't get bought out or saved quickly then they are all in big trouble.

[Whizbang]

seems like they are such a huge name though. they must have spent their money loosely.

[Phoenix7]

or ran out of business by the Chinese knock-offs.

The problem isn't the knock-offs themselves. The problem is that the Chinese and others DIDN'T IVEST In teh R&D that Greddy/Trust invested. They see a GOOD finished product and copy it. No R&D.

The real companies (trust/Apex-i) spend a lot of money to COME UP with the idea, develop it, test it, improve it, market it and sell it. The knock-off companies only invest in the copying. No initial investment, no loans like the originators. Just profit. The cost of R&D isn't passed on to the consumer because there is no R&D costs for the knock-offs.

[Whizbang]

im surprised seeing that if you want anything of quality, china is NOT the place to look.

[Phoenix7]

Quality control in China has improved A LOT! See edit above.

[Whizbang]

which then REALLY sucks because we wont have the R/D anymore.

[Miata_mx5]

Greddy was not run out of business by chinese knockoffs. That is only part of the problem.

A combination of the Treehugger mentality (in Japan and USA), a lack of new platforms in the worlds largest automotive market (USA), chinaman/EGay junk, A failing economy in Japan, and slipping here too, stricter emissions standards in japan, USA, and europe, all contributed to the falling of Greddy. It is not just 1 thing.

It was a similar thing that took APEXi 2 - 3 years ago, but as i said, if everything goes smoothly and they get taken over buy a good company. Greddy will still make parts.

What may/will happen in the future...is we will see more specialized R and D from smaller tuning shops like R-Magic, Full Race, CP Pistons, Bozz Speed Japan, etc... and lesser from larger from tuning monopolies like Greddy/HKS/APExi, etc... It is a double edged sword, because they have the financial firepower to do big RandD, but at the same time they rely on a lot to keep such a financial machine going. Smaller shops can do more to make quality parts, but lack the funding....there needs to be a middle ground.

[RotaryArt.uk.com]

China has come a long way with there quality.
Anther business I used to run with my father see the Italians give it away to the Spanish and now the Chinese have taken a large slice.

Veilside have pulled out of making body kits for Japanese cars, they will now only make to order, now concentrating on Italian exotics a these customers generally dont skrimp or get copies.

Its not just the companies to blame, we buy them as a rule so condone it.

R&D costs are huge for all companies. Us smaller companies just do it on a smaller sale

Im sure someone will buy them and keep it going