• Sep 10, 2008
UPDATE: Trust has declared the Japanese equivalent of C11, but GReddy in the U.S. is apparently in good shape. Read all the details in our update post

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 hear about a large tuner going under.

[Sources: GTChannel, JDMInsider]

PRESS RELEASE

GReddy looks forward to continuing to provide quality high performance parts for years to come.

IRVINE, CA
OCTOBER 10, 2008

To insure the long term survival of the GReddy brand in the USA, GReddy Performance Products, Inc. has opted to file for Chapter 11, Reorganization, on October 10, 2008.

GReddy sales, customer service, R&D and operation will continue to conduct business as usual, through this process. The flow of inventory and new products will continue and will not be affected. Normal GReddy operating hours will remain as before.

This reorganization change is result of last month's Minji-Saisei-Hou filing of GReddy's parent company TRUST Co. LTD. in Japan. Although TRUST has now returned to production, and GReddy Performance Products has maintained normal business practices, the recent extreme downturn in the world's banking market has made this option the best prospect for continued operation and expansion of the GReddy brand.

It is also in the best interest of GReddy's future to join some of GReddy's competitors in the industry, in not exhibiting in this years SEMA Show. The withdraw is regretful, but necessary. This does not however mean development and construction of new products and demo vehicles which were planned to debut at SEMA will stop. Instead, GReddy plans on releasing news of these items through other media outlets very soon.

GReddy Performance Products, Inc. and it's staff would like to thank all the kind well-wisher, customers and industry associates for their support in these challenging times. GReddy looks forward to continuing to provide quality high performance parts for years to come.


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    • 1 Second Ago
  • 34 Comments
      • 6 Years Ago
      I say it's time to hand out a $50 billion bailout for this company. Those two hundred workers need jobs.

      Wait, they already went bankrupt? Well, there goes that idea.
      • 6 Years Ago
      It is sad to hear this. I know I am a very car crazy guy that loves the aftermarket world. I think Greddy has a great name and great product behind but.....

      I have a few thoughts for Greddy...

      For one.. I would encourage them to continue on with R&D of new parts for all models of import and european cars. Strive to be the first to develop and fabricate a new part. Don't quit and keep moving forward.

      Second thought. Be more competitive. I think many people know that a high price tag is associated with the Greddy name, it's time for a change. For now as a possible solution, lower the price of your products and your increase sales will be almost a guaranteed as long as people want to stay loyal to Greddy products. Learn to limit discount products for sponsorships. I know lots of various parts are discounted or even given away. Regain revenue where it could have been lost but be more reasonably priced for consumers.

      Third Thought. As great for any company, PLEASE PLEASE PLEASE get feedback from consumers on any and all product and make sure you have everything in order. I think alot of feedback is missed and not really taken in account for.
      • 6 Years Ago
      i received a free GReddy Ti-C catback system from them in Irvine for letting them use my car (2005 Honda Civic Si) for testfitting. they have great products, i hope they can last.
      • 6 Years Ago
      Press Release.........

      TRUST CO. LTD, JAPAN, FILES FOR MINJI-SAISEI-HOU IN TOKYO

      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.”





      Forrest Parton
      • 2 Years Ago
      As a tuner myself this is really sad news. However it my understanding that chapter 11 of the bankruptcy code is for companies looking to restructure their debt, and improve their business. Afterall GM filed for chapter 11 bankruptcy in 2009 and had their most profitable year ever in 2010. It just goes to show you that the social stigma people have about bankruptcy is not very acurate. I'm no expert though... I have been reading up on the subject and have found this blog very helpful feel free to check it out http://www.sidneydiamond.com/blog-bankruptcy-information/
      • 6 Years Ago
      We have confirmed with Trust here in Japan that they have filed for bankruptcy.

      However, we have also had reassurances that it will be "business as usual" for the time being, much like was the case with Apexera/Apexi.

      http://www.nengun.com
      • 6 Years Ago
      Megasquirt is a lot of work, lol. Albeit much cheaper, but not for the average person. More for the tweaker in mind ^^

      You get what you pay for. Yea the greddy emanage is much more expensive, but hey not everyone wants to go through all the hassle.

      A lot of their turbo kits, use older turbos, but hey it gets the job done, and they don't crap out, being they are great quality. Usually its because of bad install and/or bad tuning.

      Anyways, its sad that a reputable company like Greddy/Trust is going out of business. Hopefully they come back like apexi did.
        • 6 Years Ago
        since when did this become an E-peen pissing match - get over yourselves -

        It is unfortunate that a large company such as Trust has gone bankrupt, but not the end of the world.
      • 6 Years Ago
      Quite Funny. The company that sells kids with credit cards and no money, the stuff they need to make their worthless cars even worthless and stupid -- has itself ended up where many of these "tuner" people are, bankrupt, with a bunch of stuff that has no value.

      excellent.
      • 6 Years Ago
      RELAX PEOPLE!!!! Greddy is not going ANYWHERE!!! Their product will still be available and continue to come out with new stuff. Didnt you hear, Apexi went bankrupt last year, yet they are still producing and shippping stuff. http://www.nolimitmotorsport.com
      Carlos
      • 6 Years Ago
      Wow this is awful.
      • 6 Years Ago
      CAN you say OVER PRICED!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Why pay $40 dollers for a gasket I found for 10 dollers? OR $50 for a $10 doller banjo bolt.9,000 for a turbo kit for a 350z when theres old TECH and 2500 worth of parts.GREDDY-THRUST Good performance WAY OVER PRICED.
      • 6 Years Ago
      A facebook group for us all to reminisce about GReddy has been started.
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