Trust/Greddy Japan files for bankruptcy

[Verdugo]

Driving Sports: Trust/Greddy Japan Files for Bankruptcy

It's a sad day

[Rogan]

dammit! ya beat me to the punch, Armin

Japanese tuning firm Trust/Greddy declares bankruptcy - Autoblog

[RealDealTarheel]

Is this a huge blow to anyone? I only have one piece of greddy stuff, and honestly I only bought it because it was used and cheap. If HKS goes up then I'll be shocked/care.

[Verdugo]

Is this a huge blow to anyone? I only have one piece of greddy stuff, and honestly I only bought it because it was used and cheap. If HKS goes up then I'll be shocked/care.

You've got to think of the big picture here. Greddy was among the Japanese manufacturers that helped kick-start the import aftermarket industry in the 1990s. They helped bring modifying imports to the forefront, creating the multi-billion dollar industry that we have today. Without companies like Greddy that helped create the foundation of aftermarket parts that we have today, who knows if Subaru, Mitsubishi, or anyone else would've even considered bringing over a car geared toward the tuner market. Trust/Greddy's decline in the industry is a sign of the times...our struggling economy, knock-off and/or cheap parts that have no R&D behind them, parts being *****d out at or below cost, and the overall drop in aftermarket sales throughout the industry. While there could be many reasons why Trust/Greddy is filing for bankruptcy, one definitely has to consider the big picture and think about the direction the industry as a whole is moving toward. You never know...HKS, Cusco, AEM, Volk...any or all of them very well could be next given how the market is struggling right now. And if they go, what do we have left? I sure as hell won't be happy if Agency Power is the only thing I can buy in a couple years (but then again, they won't have any designs to copy from either )

[pzr2874]

Greddy needs to start lowering their prices.... as do all the companies.... just like car audio had to do 10+ years ago.

[06wrx4me]

Now correct me if I'm wrong here gents, but corporate bankruptcy does not necessarily mean the doors are closing. It usually means a re-org is coming and the company reevaluates market share, designs and targets, comes back with a vengeance.

So we very well may not have heard the last of old greddy.

Armin is right however, Greddy is a "blue chip" of sorts in the autoparts world. If they do close their doors it will be a huge blow, yet hopefully their absence will spawn enough business to their competitors that they will get through ok.

In a way its funny: In the early 2000's a couldn't throw a rock without hitting a tuning shop. Now almost everyone around here has closed up its doors. The largest of which was Motorsport Dynamics of Sacramento, who had a huge facility, stocked everything, dyno's, etc. and had been open for years. I remember going there in 2001 and seeing full JDM type R swaps being done, full motor builds, custom turbo swaps, RHD conversions, I felt like a kid in a candy store. Sadly a year ago or so they just quietly closed. I have noticed motorcycle shops seem to have the same trend...how many "Billbo's custom chopper shops" are still open?

[Verdugo]

Greddy needs to start lowering their prices.... as do all the companies.... just like car audio had to do 10+ years ago.

Lowering prices isn't necessarily going to solve the problem. There's still time and effort that goes into R&D for products, not to mention manufacturing, import costs, and shipping of course. Many products are also more specialized per application...you can't use the same struts for both an STI and Evo, not just because they simply won't fit, but also because they require different spring rates and dampening (although some companies have gotten around that, ending up with a ****ty product). This isn't the case for car audio...a 12-inch sub is a 12-inch sub, and a single-DIN deck is a single-DIN deck. Generally speaking, electronics such as car audio also don't have the same overhead costs for manufacturing and shipping as most car parts do, not to mention the profit margins for car audio blows away those of car parts. Even for brands made here in the US, the deepest wholesales are generally 25% off retail at the very most, whereas you're looking at 50% for most car audio equipment.

[jeffmm06]

Now correct me if I'm wrong here gents, but corporate bankruptcy does not necessarily mean the doors are closing. It usually means a re-org is coming and the company reevaluates market share, designs and targets, comes back with a vengeance.

Thats all correct, it should make all contracts null and void, and gives them a chance to restart. However their credit records will have FILED FOR BANKRUPTCY all over it, well at least in the states. Who knows about Japan's policy.

[06wrx4me]

Thats all correct, it should make all contracts null and void, and gives them a chance to restart. However their credit records will have FILED FOR BANKRUPTCY all over it, well at least in the states. Who knows about Japan's policy.

Article says they filed for Bankruptcy in Japan not the US.

[Trainrex]

Lowering prices isn't necessarily going to solve the problem. There's still time and effort that goes into R&D for products, not to mention manufacturing, import costs, and shipping of course. Many products are also more specialized per application...you can't use the same struts for both an STI and Evo, not just because they simply won't fit, but also because they require different spring rates and dampening (although some companies have gotten around that, ending up with a ****ty product). This isn't the case for car audio...a 12-inch sub is a 12-inch sub, and a single-DIN deck is a single-DIN deck. Generally speaking, electronics such as car audio also don't have the same overhead costs for manufacturing and shipping as most car parts do, not to mention the profit margins for car audio blows away those of car parts. Even for brands made here in the US, the deepest wholesales are generally 25% off retail at the very most, whereas you're looking at 50% for most car audio equipment.

Most of the high dollar aftermarket companies are horribly gouging the customers. If the car's manufacturer can develop a strut and sell it for $150 with a profit, why should the aftermarket unit with different dampening and a pretty color cost $500? The high dollar aftermarket companies wonder why somebody will come along, reverse engineer their product and sell it for half of the price. The R&D on these products isn't as expensive as one would think. It is by no means cheap, but with todays computer support and C&C machines, it's not quite as expensive as it used to be. $2500 for a set of 4 forged wheels is ridiculous. It's like buying a Coach purse. $1000 - $1500 for an exhaust is ridiculous. Exhaust is easy to build, and easy to develop. Paying for a quality item is one thing, paying quadruple the price to see a pretty Greddy sticker is stupidity.

[Verdugo]

Most of the high dollar aftermarket companies are horribly gouging the customers. If the car's manufacturer can develop a strut and sell it for $150 with a profit, why should the aftermarket unit with different dampening and a pretty color cost $500? The high dollar aftermarket companies wonder why somebody will come along, reverse engineer their product and sell it for half of the price. The R&D on these products isn't as expensive as one would think. It is by no means cheap, but with todays computer support and C&C machines, it's not quite as expensive as it used to be. $2500 for a set of 4 forged wheels is ridiculous. It's like buying a Coach purse. $1000 - $1500 for an exhaust is ridiculous. Exhaust is easy to build, and easy to develop. Paying for a quality item is one thing, paying quadruple the price to see a pretty Greddy sticker is stupidity.

I agree and disagree with you, to a certain extent Yes, the OE manufacturer can develop a strut and sell it for $150 with a profit, but that same designed strut isn't going to hold up to the rigors of something like competitive racing. It's not just about different dampening...it's the type of materials being used, R&D to see if the dampening and spring rates properly match the intended car application and purpose, and providing the support if/when the struts need to be rebuilt. You'd also have to pay the people who will reverse engineer the strut to begin with, and to do it properly, it's going to be someone who has an engineering education and background, who of course won't be a cheap employee.

Forged wheels have their ups and downs. Certain brands undergo some stringent testing processes to ensure how they hold up on the track and on a daily driven street vehichle. However, other brands don't do this and will charge even more money for a potentially weaker wheel. Think $2500 for a set of forged wheels is bad? How about $4500? I don't think those are worth it at all, and in most cases, that $4500 set of wheels isn't anywhere near as strong or light as the $2500 set.

Exhaust is one place where it can go both ways. I'll be happy to pay extra for good looks, good welds, perfect fitment, and a design that actually has proven performance gains. For example, the hand-built craftsmanship on my Dixis exhaust on my M3 is what sold me on it, not to mention the fact that it's full titanium. However, paying $3500 for a Tubi stainless steel axleback exhaust on an M5 is absolutely ridiculous. Exhausts have generally been an area where costs seem to go up depending on how expensive your car is.

[Trainrex]

I agree and disagree with you, to a certain extent Yes, the OE manufacturer can develop a strut and sell it for $150 with a profit, but that same designed strut isn't going to hold up to the rigors of something like competitive racing. It's not just about different dampening...it's the type of materials being used, R&D to see if the dampening and spring rates properly match the intended car application and purpose, and providing the support if/when the struts need to be rebuilt. You'd also have to pay the people who will reverse engineer the strut to begin with, and to do it properly, it's going to be someone who has an engineering education and background, who of course won't be a cheap employee.

Forged wheels have their ups and downs. Certain brands undergo some stringent testing processes to ensure how they hold up on the track and on a daily driven street vehichle. However, other brands don't do this and will charge even more money for a potentially weaker wheel. Think $2500 for a set of forged wheels is bad? How about $4500? I don't think those are worth it at all, and in most cases, that $4500 set of wheels isn't anywhere near as strong or light as the $2500 set.

Exhaust is one place where it can go both ways. I'll be happy to pay extra for good looks, good welds, perfect fitment, and a design that actually has proven performance gains. For example, the hand-built craftsmanship on my Dixis exhaust on my M3 is what sold me on it, not to mention the fact that it's full titanium. However, paying $3500 for a Tubi stainless steel axleback exhaust on an M5 is absolutely ridiculous. Exhausts have generally been an area where costs seem to go up depending on how expensive your car is.

I <3 you Armin. You always debate like a gentleman.

[Verdugo]

I <3 you Armin. You always debate like a gentleman.

Haha we can't all agree, but that doesn't mean we have to take things personally or become keyboard cowboys. If we all thought the same, our lives would be boring!

Any n00bs reading...take note of this

[jeffmm06]

Article says they filed for Bankruptcy in Japan not the US.

Which is why I said thats at least how it would work here, not sure about Japans bankruptcy policy, as thats where they filed as you stated.

[BrianH]

Unfortunately Greedy probably isn't going to be going anywhere. More than likely just a shuffling of paperwork and sweeping some debt and worker benefits under the rug.

Greedy may have been something at one time, but their time has come and gone. I guess horrible customer service, non-involvement in the community and not standing behind their products finally caught up with them.