The Truth About Trust/greddy Japan

[Hi Octane Racing]

Hi All,

As a lot of you may already know Trust/GReddy Japan have fallen on hard times over the last few weeks. After reading all the miss information floating around the internet on forums etc we have decided to disclose the truth about this matter. Below is the Official Press Release from GReddy Oceania regarding this matter.

Trust/GReddy in Japan have encountered a minor cash trading problem. As a respected Japanese Company which has operated successfully for 30 years, they are currently being backed by the Japanese Government to successfully trade into the future.

The company has extensive cash reserves and will continue to receive product and components from their suppliers. They will continue to supply GReddy Oceania as per normal. We are assured that all orders placed by GReddy Oceania are either underway or in transit.

Following extensive discussion with Japan today we are confident that there will be no disruption in the distribution of GReddy product in Australia and New Zealand.

I will keep you informed.

Allan Murray

Manager

GReddy Oceania

Edited September 11, 2008 by Hi Octane Racing

[SAM916]

that sounds better than what others have been saying

lets hope they can get things sorted out and back to full strength.

[ITZTRU]

yeah no doubt, fingers crossed!

[babyskyline]

Damn that sux. Hoping they can get everything sorted out

[Bakes]

I rekon they will stay afloat, Trust me. lol

[Dynamix]

Hi All,

As a lot of you may already know Trust/GReddy Japan have fallen on hard times over the last few weeks. After reading all the miss information floating around the internet on forums etc we have decided to disclose the truth about this matter. Below is the Official Press Release from GReddy Oceania regarding this matter.

Thanks for taking the time to post and clearing that up.

Cheers.

[m3gtr]

Good shit.

"Extensive cash reserves" sounds good

[Antimatter]

"they are currently being backed by the Japanese Government to successfully trade into the future"

that sounds familiar......

Hope all goes well - they have a great range of product.

Edited September 11, 2008 by Antimatter

[benm]

If they have 'extensive cash reserves' why are they in this problem in the first place?

[FineLine]

[br3tt]

^^Exactly what i was thinking..

Hopefully everything ends up ok

[Slide]

"they are currently being backed by the Japanese Government to successfully trade into the future"

that sounds familiar......

Hope all goes well - they have a great range of product.

The stigma is always that they will close up shop and nothing will be available.

This is generally not the case. The company is held up a little while the situation is evaluated by the Japanese government or 3rd party investigators usually within a couple of months and items will then steadily become available again much like Apexera hopefully, after they applied for Minjisaiseiho and came out of it to some extent.

"Minjisaiseiho" A type of civil reconstruction, it is what Apexera did last year

Their communication by phone is much more informative then a generic mass general inquiry response, especially when you have orders pending which are held up.

[a20089]

Interesting update, I don't know about the financial position but I have seen enougth companies go under to read the signs in the official word.

"have encountered a minor cash trading problem" Can't pay their bills, big problem

"As a respected Japanese Company which has operated successfully for 30 years" Another warning sign, playing on the length of tenure rather then the current financial position

"currently being backed by the Japanese Government to successfully trade into the future" Hard to say what this means without knowing what the backing constitutes, however reading between the lines it is clear they have been unsuccessfully trading for some time.

"The company has extensive cash reserves" rubbish, maybe assets but cash is liquid and easily converted thereby avoiding this problem.

"We are assured that all orders placed by GReddy Oceania are either underway or in transit" Lets hope so, never trust the word of a company in financial trouble.

I hope it's not as bad as the statement suggests, I would have expected a better statement to specify when the company would be fully solvent again.

[Duncan]

hmm not to mention that is from Greddy Oceania not Greddy Japan.

heres hoping they can trade out of their troubles

[akeenan]

japanese companies being backed by the japanese government means nothing ..... usually only that its just putting them off going bankrupt a little longer . . .

[Graphicdude]

Where was this official press release captured from? I have gone to both the Greddy site and ytrust power site and found nothing. Can someone post a link? Thanks.

[STATUS]

Interesting update, I don't know about the financial position but I have seen enougth companies go under to read the signs in the official word.

"have encountered a minor cash trading problem" Can't pay their bills, big problem

"As a respected Japanese Company which has operated successfully for 30 years" Another warning sign, playing on the length of tenure rather then the current financial position

"currently being backed by the Japanese Government to successfully trade into the future" Hard to say what this means without knowing what the backing constitutes, however reading between the lines it is clear they have been unsuccessfully trading for some time.

"The company has extensive cash reserves" rubbish, maybe assets but cash is liquid and easily converted thereby avoiding this problem.

"We are assured that all orders placed by GReddy Oceania are either underway or in transit" Lets hope so, never trust the word of a company in financial trouble.

I hope it's not as bad as the statement suggests, I would have expected a better statement to specify when the company would be fully solvent again.

All that matters is that i have been dealing directley with TRUST japan for close to 6 years, all orders up untill yesterday, now and pending are all being honored and honestley they are trading like business is usual in fact i have about 6k in parts leaving anyday.... and other orders for parts have been despatched over the past few days like nothing even happened....

Both Trust japan and Greddy Oceania were at my workshop last week discussing future bussiness, so at this stage i would not panic.

Trust Japan has released a blog post and update on the official website in response to the incorrect bankruptcy news yesterday.

"In the response Trust sincerely apologised for the concern and impact of the news, but confirmed that proceedings are underway under the Japanese Civic Rehabilitation Law.

As previously reported, Trust assured that there will be no impact to part availability or development in the forseeable future. Trust organised events in Japan will continue on schedule and the company pleaded for continual customer loyalty and confidence.

We are happy to report this news and provide confidence for the purchase of Greddy products. In fact, in this troubled time purchasing Greddy products may prevent any future hard times for one of the largest companies in the Japanese industry"

Edited September 12, 2008 by URAS

[Slide]

Where was this official press release captured from? I have gone to both the Greddy site and ytrust power site and found nothing. Can someone post a link? Thanks.

They are Greddy press releases and responses to dealer/distributor inquiries.

They are pretty much all the same, and are there to just put people at ease. The usual blogs are here:

http://www.greddy-blog.com

http://www.trust-power.com/event/0809/index.html

To receive support "Minjisaiseiho" you have to declare severe financial distress which in any share based company is regarded as bankruptcy.

If anyone else wants the bankruptcy report it can be purchased from here:

http://www.teikoku.com/bankruptcy_article.aspx?id=2195

http://www.teikoku.com/Bankruptcy.aspx

As they are being civilly rehabilitated/reconstructed they are not going bankrupt.

Orders though, are being delayed when you are spending more then over the counter cash with Trust.

[Beer Baron]

hey this will be a bonus for them. all the JDM parts fans will panic and start buying up big in trust parts fearing that some parts will go out of production and trust will go under, this will give a good cash boost for trust and set them back on the path to sucess.

I know I stockpiled certain apexi parts back when they had financial problems fearing they might go the way of the tassie devil...

[Slide]

Exactly, when i found out Wednesday morning i started the threads to just let people know when i got the call that one of our orders is being delayed which in turn will affect those who have "specialized" parts in this order.

It wasn't to strike fear in the community that people wont be able to keep saving for T88 kits for their Honda's.

I know I stockpiled certain apexi parts back when they had financial problems fearing they might go the way of the tassie devil...

Tiger ?