Anything Automotive

I’m sure everyone has had time to learn about Greddy/ Trust (depending on which side of the pond you’re on) filing for chapter 11 bankrupcy both in Japan and now recently released in the United States.

Source:http://www.greddy.com/news/?id=61

Honestly, does Greddy/ Trust believe they will be able to restructure the company into something that was once making money over 10 years ago? I wouldn’t count on it. Greddy, whose ineffectiveness I blame for the lack of innovation and sales over the 10 years, will definitely be rolling into oblivion. The chapter 11 bankruptcy, though not the end of the rope as many optimists point out, actually appears to be the final straw of the sufficiently screwed company for effing up their once proud company so bad over the years. Imagine all the Trust workers in Japan that may lose their job during the restructure. Remember, restructuring a company revolves around MONEY, employees are a companies most expensive asset. Have any of the news articles regarding Greddy ever pointed to cutting jobs? The answer is: no. I bet all the Greddyites and Trustites are saying ‘thanks for nothing’ right now.

I did make this post a while ago after learning about Trust in Japan filing for what is similar to chapter 11 in Japan.

I think many will know where I stand on the issue of real companies that do real R&D. It’s good news that Greddy plans to restructure, and hopefully it works. Greddy has played a huge role in making the tuner market what it is today with their innovative electronics, reliable turbo kits, and overall good quality products. But in the recent years they really haven’t done much in comparison to other companies. Greddy posted their greatest year back in 1998 with US $80M. You can’t go off yesterday’s success forever. It pathetic that ten years have passed with sales declining ever since their best year in 1998 and nothing has been done. That is a weak business model and weak management. The knock-off companies may be partially to blame, but I wouldn’t blame them completely for Greddy’s 10 year decline in sales.
If any other corporation in the US were facing a 10-year decline in sales, the board of directors or even the shareholders would be looking for blood. They would be cleaning house and restructuring long before the 10 year mark.
It sucks what’s happening to Greddy, especially after all the good they have given us.