Greddy/Trust filing for Bankruptcy

[03.5MSP]

Well thanks to cheap knock-offs and ebay style parts, greddy/trust is facing financial troubles and Apexi and HKS are not doing much better either. I just wanted to know if anyone else know something more about this. I really sucks to see companies like Greddy struggling while fake ebay knock-off companies make money.

http://www.autoblog.com/2008/09/10/j...es-bankruptcy/

[SvicksTc]

Saw This on ScionLife.com

http://www.autoblog.com/2008/09/10/j...es-bankruptcy/

$60 mil in debt!

Quote:
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.

Goodbye Greddy

[ToTheIX's]

in a lot of cases though....exhausts for example......its hard to argue paying more then double for greddy/apexi/hks, obviously other parts are a diff story but in the case of exhausts, theyre product isnt anymore superior then ssautochrome really

[Vypurr]

Eh. nEver been a Greddy fan so I am not that upset.

[05Accent]

that sucks!!!

[twastheglow]

Originally Posted by ToTheIX's

in a lot of cases though....exhausts for example......its hard to argue paying more then double for greddy/apexi/hks, obviously other parts are a diff story but in the case of exhausts, theyre product isnt anymore superior then ssautochrome really

This brings up a good point. Why are they charging so much more for these products when it's an exhaust, plain and simple. Try making your prices more competitive.

[BustedUjoint]

Originally Posted by twastheglow

this brings up a good point. Why are they charging so much more for these products when it's an exhaust, plain and simple. Try making your prices more competitive.

bingo!!!!!

[criz]

still crazy that such a brand like Greddy/Trust is in the crapper... I'm keeping an eye on the outlet area of their site!

[cmr076]

Originally Posted by 03.5MSP

It really sucks to see companies like Greddy struggling while fake ebay knock-off companies make money.

it's hard for anyone to compete with the internet... our shop (and most shops) are taking a hit when kids set up zero overhead drop shipping "companies" in their mom and dads basement and undercut real, legitimate business everyday.

[TROLL]

Thats a shame... they are one of the few who develop new parts for cars and set the standards. Without these companies all the copiers wouldn't be around either. I wonder if after the initial run they could lower prices some once they've covered their R+D and other expenses that went into a product initially, more like the computer industry.

[twastheglow]

Originally Posted by TROLL

Thats a shame... they are one of the few who develop new parts for cars and set the standards. Without these companies all the copiers wouldn't be around either. I wonder if after the initial run they could lower prices some once they've covered their R+D and other expenses that went into a product initially, more like the computer industry.

Exactly!!! Why don't companies do that? Instead of selling 1 exhaust for $800* and making a $400* profit, how about selling 3 exhausts for $600* and make $600* profit?

[Slo240]

Prices can be more competitive but think of it like this.

The company needs to put out their overhead costs to begin with. Research and Development, test vehicles, materials, labor, shop time. A lot of companies do flow test their products like exhausts, and design them per application. SSAC, TurboXS and the other ebay companies can do it cheaper because they make knock off's of the real products. They use cheaper materials and cheap labor. They don't have to turn out their pockets to come up with the same overhead that the other companies do. They just steal their designs and peddle them at profit. Most coming from china so they cost next to nothing.

So (Greddy, HKS, Apex, etc) they already have thousands out of the door on R&D. then the first 10 you sell are to a 3rd party company who reverse engineer them and start production. Now 2 months after your new product is out the market is flooded with a half price knock off. Dropping your price isn't really the answer.

Having people realize the impact of buying substandard goods from unsavory businesses is the answer. You pay more than you think sometimes, and that goes for EVERYTHING not just car parts. Then we'll get better cheaper products.

[TROLL]

That wont happen though... so providing a superior product at a price thats appealing enough that people will see it as worthwhile is the answer IMO. Or getting China to crack down on all the replicas, but I wont hold my breath for that.
Example: I can buy a HKS exhaust manifold for my Supra, for about $1800. Or I can buy an SS Autochrome exhaust manifold which is a direct copy for about $180. I would LOVE to have the HKS, but the SSA has also been proven (with slight modification) and when you're talking about 10x the price for the HKS, I just cant justify that.
If the name brand exhaust manifolds were reasonable, even just sub-$1000, then I'd definitely consider them more, but its hard to argue given the circumstances.
And FWIW I ended up with a Greddy manifold for my Supra, but I bought it used for $600, whereas it would have been over $1800 new.

[twastheglow]

Originally Posted by TROLL

That wont happen though... so providing a superior product at a price thats appealing enough that people will see it as worthwhile is the answer IMO. Or getting China to crack down on all the replicas, but I wont hold my breath for that.
Example: I can buy a HKS exhaust manifold for my Supra, for about $1800. Or I can buy an SS Autochrome exhaust manifold which is a direct copy for about $180. I would LOVE to have the HKS, but the SSA has also been proven (with slight modification) and when you're talking about 10x the price for the HKS, I just cant justify that.
If the name brand exhaust manifolds were reasonable, even just sub-$1000, then I'd definitely consider them more, but its hard to argue given the circumstances.
And FWIW I ended up with a Greddy manifold for my Supra, but I bought it used for $600, whereas it would have been over $1800 new.

Great example. I would like to know what the mark-up is on that exact manifold. I want to know how much they would have made if you had purchased it new for $1,800.

[peteyturbo]

Another example of the chineese market takever..You guys may not like greddy stuff but remember, they paved the way for the aftermarket for japaneese cars..If it wasn't for them, we wouldn't be here..

[tcturbo91]

this totally sucks... all these names greddy/trust/hks/apexi have all made great parts for years... and now they are all in danger. Honestly i can see some parts being the same as cheaper ones, but bigger more complex things like turbos aren't going to cut it from SSautochrome...

[cburwell]

Originally Posted by peteyturbo

Another example of the chineese market takever..You guys may not like greddy stuff but remember, they paved the way for the aftermarket for japaneese cars..If it wasn't for them, we wouldn't be here..

I'm with you, and cheap ass people are just as much to blame. We say the same thing happen in the SR20 community with a company called Hotshot. SSautochrome made exact copies of their headers and sold them for $150. Kids came along and didn't want to pay $400 for a header that would hold up for more then a few years.

I would like to see these knockoff companies actually try to design a great product and still sell it for $100.

[03.5MSP]

I agree. Im just wondering what will happen when the replica companies have nothing to copy. If they want to stay in business they will have to r&d their own products which will cause prices to go up, and like you said a great product will not be $100.

[abrok99]

in the new import tuner they had a article on this and veilside said there not gonna make more products cause they just get stolen everytime and lose money

[sisforsurfing]

Originally Posted by Vypurr

Eh. nEver been a Greddy fan so I am not that upset.

haha, I said the same thing this morning when I heard about this. But it is pretty sad that this is what it's come to.

For those of you who haven't, I suggest reading this. Pretty pertinent to this situation, if a bit over the top;
http://www.bespokeventures.com/blog/?p=1002