Trust (Greddy) Declares Bankruptcy
Posted by Eric Hsu under Cars

Japan’s largest credit research company Teikoku Databank announced that automotive parts manufacturer Trust filed for bankruptcy on September 10th, 2008. Trust also known abroad as Greddy is reported to be approx US$60M in debt.

In February 2008, Trust reported declined annual sales of US$53M. Loan payments totallying US$43M became a burden and was forced to file bankruptcy to the Tokyo District Court.

Trust was founded in 1976 and employs 190 workers producing exhausts, springs, turbo chargers and car electronics. A US subsidiary, Greddy Performance Products was founded in 1994 to expand overseas sales. In 1998 Trust reported annual sales of US$80M but since then sales had been declining.

People have been telling me all morning about this. Taro at GT Channel sent me the details. Ouch is all I can say. On the flip side, there’s plenty more of the pie for everybody else now. Who will take advantage of this? HKS? (probably) Apexi? (possibly) Power Enterprises (maybe) Blitz? (na…). Good luck to Greddy if they plan on restructuring. Greddy is responsible for the growth of the US tuning market in a big way with their CARB legal turbo kits and stuff, but I hope they stop polluting the tuning world with dumb *** piggybacks though…

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 here about a large tuner going under.