Trust/Greddy files Chapter 11....

[midnightfxgt]

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

-John

[06Touring3]

damn that's a big loss

[Broli]

wowsers!

:(

[b3GS]

sign of the times

everyone in the car industry is hurting

[06Touring3]

quick everyone mod your cars before they all go bankrupt!!!!! lol :P

[x_o_k_x]

thats sad.. should we expect inventory sell out?

[3GFX]

I can't believe it. They seemed as though they were doing well.

[TheProfessor]

It's the cheap Chinese knock offs. Hopefully this will cause other companies like HKS and A'PEXi to wake up and realise what they're up against.

It's really too bad, they made good quality stuff.

[midnightfxgt]

Not much they can do against knock-offs.... maybe start taking legal action and patenting???

-John

[MajesticBlueNTO]

It's the cheap Chinese knock offs. Hopefully this will cause other companies like HKS and A'PEXi to wake up and realise what they're up against.

It's really too bad, they made good quality stuff.

A'PEXi already filed for Chapter 11 last year....Chapter 11 doesn't necessarily mean the company is going the way of the DoDo immediately. It allows for reorganization and some debt relief while still operating day-to-day.

[06Touring3]

yeah chapter 11 is just protection from bankruptcy....but they're basically 1 foot in the grave

[midnightfxgt]

yeah... its protection while they reorganize for 1 more kick at the can basically. To be truthful, I dont see greddy going anywhere in the next lil while.

[cwp_sedan]

http://www.autoblog.com/2008/09/12/update-greddy-in-u-s-still-good-to-go

[Kevin@nextmod]

It's the cheap Chinese knock offs. Hopefully this will cause other companies like HKS and A'PEXi to wake up and realise what they're up against.

It's really too bad, they made good quality stuff.
what does it have to do with the chinese knock offs? i do'nt know any chinese companies made turbos or catback exhausts. Most knock offs are just mufflers and custom pipe work. But thats been existing for a long time already. Maybe majority of the people dont like greddy anymore and likes other brands. Can't really blame the chinese on this one.

And on a side note. I've never seen a knock off catback exhaust. Only universal crappy mufflers.

[iconicrocket]

This is normal business. I'm sure some other company will step in to fill the void. One company disappear, another one will find that as an opportunity. There's plenty of vultures ready to pick at the carcas and get some nice R&D if they go into liquidation.

Never know some other company might just buy the whole thing and start over again.

[midnightfxgt]

what does it have to do with the chinese knock offs? i

You kidding Kev? Those friggen knock-offs hurt the big guys. Say Greddy spends millions researching, developing, marketing etc a new BOV. Now some Chinese knock-off company comes a long and rips it off. They may use inferior products etc, but it serves the same basic function (although may have a higher failure rate!).

Problem is Greddy may sell for $200, and these Chinese knock-offs need to sell at $125, and profit. Greddy can;t since it invested sooo much in design etc. It kills them.

Its like buying fake Bride seats. Sure there are some that look DAMN close to them. However, they are made in Tawain, and not the same as Bride Japan. ;)

-John

[Kevin@nextmod]

You kidding Kev? Those friggen knock-offs hurt the big guys. Say Greddy spends millions researching, developing, marketing etc a new BOV. Now some Chinese knock-off company comes a long and rips it off. They may use inferior products etc, but it serves the same basic function (although may have a higher failure rate!).

Problem is Greddy may sell for $200, and these Chinese knock-offs need to sell at $125, and profit. Greddy can;t since it invested sooo much in design etc. It kills them.

Its like buying fake Bride seats. Sure there are some that look DAMN close to them. However, they are made in Tawain, and not the same as Bride Japan. ;)

-John
i personaly never seen a knock off bov. Also why can't you guys point it to other companies like hks, apexi, etc..... maybe they went down in price? so they became more competative? And also, think about this. The chinese might copied there stuff. But its only been these few years. But it says 60 million dollars in debt. Its probably there bad business skills and might be other reasons.

I'm also pretty sure if the chinese did copy peoples stuff, they for sure did hks and other brands too. Why are they not going bankrupt?

I don't like knock offs as well but its really not the chiense faults. Its the people that buys them. Its like buying fake dvds. Sure it does kill the market and the artists but its not totally the people that made the fake dvds fault. Its mostly the people that bought them. If theres no demand then theres no supply right?


my 2 cents. Hope i'm making sense here..haha

[TheProfessor]

Kev, first off don't think I'm taking a shot at Chinese people, cause I'm not. I just wanted to make that clear.

Companies like GReddy don't simply make turbo's and catbacks, a good portion of their business comes from intakes, strut tower bars, braces, suspensions, turbo timers, etc.

I have seen countless chinese made 'copies' of these types of products, and in many cases they look identical to the authentic ones. All I'm saying is that it is because of the ability to purchase these cheap replica pieces that companies like GReddy hurt. These knock offs have been around for a long time too, at least seven years IMO.

I also want to add that you're right, it is market demand that creates these products. Unfortunately there are a great number of 'ricers' out there who don't mind cheap knock offs that sound/look like crap (when compared to the original). These are the same people who drive around with unpainted body kits and windshield washer nozzles that light up......tasteless.

[midnightfxgt]

It makes sense.... but its not the consumers fault always. I had a buddy buy a BOV for $180 at PMall. Was a Greddy fake. It was a very very good looking fake though, and the only reson he knew was when we put it up to a buddy's real one.

Sure there are other companies getting scammed. Apexi is one of them. Here is a warning about fake ones: http://www.apexi-usa.com/news_article.asp?id=12 . Tein also has a warning out: http://www.tein.com/counterfeit/index.html

Say the J's Racing lip you bought was a fake, except you had no idea. Now it started to yellow, and fade.... maybe a couple spider cracks. You would be pissed and probably post your story online to warn others. That means, J's Racing missed out on a sale to you, and now anyone who avoids them due to the negative image of the fake.

Its not the only reason, but its a large one. Its one thing to make a replica product, but its another to rip it off, and lie to people. Peter and Nextmod make a lot of replica products. However, they never market them as authentic pieces etc, and try to fool people into them. Thats the difference to me.

-John

[TheProfessor]

^ Well said John.

[3GFX]

Its trully a shame but I question some of their market tactics. One that bothers me in particular is the choice to sell there own branded oil. For special applications like turbochargers. There are other well known companies that focus on that. Even if the Greddy stuff was rebranded I don't think it was a nice choice.

The focus on chinease knockoffs is what is killing the market. There is something to be said for cheaper kits and parts. Quality at low cost is obviously what counts to today's consumer considering most are younger with low incomes and therefore low budgets. A little bit of a focus and price point change might turn the company around.

[midnightfxgt]

Tough when you want to build the most reliable and cutting edge. R&D takes $$$. If you price shop, Greddy isnt really too crazy on price when compared. :)

[TheProfessor]

As they say:

Cheap, Fast, Reliable

Pick two.