It’s a dark day for all Japanese rice burner and tuning enthusiast. In a world where the market is seemingly filled by pirated or dubious products claiming to do whatever more established brands can but for much less, our choices have now been limited. The next time you think about upgrading something in your car, you will sadly have to forget about TrusT/Greddy products as they are now officially bankrupt.
Known as Trust in Japan and Greddy everywhere else in the world, the company has sunken into $60million 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 – established in 1976, employs around 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 and introduced into markets worldwide. Without a doubt, there will be several firms that will step up to fill the need of enthusiasts, assuming that Trust doesn’t try to reorganize, but with the Japanese aftermarket industry down overall, we suspect this won’t be the last time we’ll hear about a large tuner going under but let’s all hope we don’t as such news is never welcomed.
UPDATE (14/09/08) :- Greddy USA Continues Operations
GReddy Performance Products Inc., Parent Company to Undergo Reorganization Through Japanese Equivalent of U.S. Chapter 11 Filing
September 9th, 2008, Irvine, CA-GReddy Performance Products, a California Corporation, has announced that its parent corporation, TRUST Co. LTD, has filed for Minji-saisei-hou in Tokyo, Japan, the U.S. equivalent of a Chapter 11 reorganization plan. As in the U.S., this filing is a common strategy utilized by companies to allow them to continue to conduct business and service customers while undergoing an internal reorganization process.
This reorganization will have little, if any effect on GReddy Performance Products Inc., USA. GReddy assures its customers that it has ample inventory of all products for the U.S. market, and there are no production delays on new and current product lines coming from Japan. GReddy looks forward to exhibiting at the 2008 SEMA Show in Las Vegas, NV in its 20? x 40? booth, and will have three new project vehicles and new 2009 products on display. Representatives from both GReddy USA and TRUST Co. LTD Japan are attending the SEMA Show to answer questions about the reorganization and future plans for the company to retain its dominance in the sport compact market segment for the next 30 years.
Stated GReddy Performance Product’s Kenji Sumino, “TRUST Co. LTD Japan has filed for bank protection in order to restructure. This does not affect GReddy Performance Products USA at this time. In fact, we are working on plans to assist TRUST Co. LTD Japan during this process in every way we can. We have more than adequate inventory to sustain us until TRUST Co. LTD Japan returns to full production capabilities. As more information becomes available, we will release it to the media.”
SOURCE : AUTOBLOG
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