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Tuner industry looks to be in trouble

1.7K views 23 replies 21 participants last post by  pistones  
#1 ·
I read this article this morning, I had no idea Greddy went bankrupt last year. This was the 1st year HKS didn't show up at the Tokyo Auto Salon. I guess it's to be expected, when people are worried about the future of the economy the first things to go are the toys.


Countersteer
State of the Japanese Tuner Industry: One metric is the scarcity of auto-show models.

By Sam Mitani, International Editor


As the Detroit automakers were doing their best at the North American International Auto Show to convince the world that they're serious about turning their fortunes around, Japanese carmakers and tuners were doing their best to show that the sporty car is far from dead at the Tokyo Auto Salon (TAS). Judging by the buzz within the halls of the Makuhari Messe in Chiba, Japan, there's still a strong pulse. The turnout for the three-day event was on par with last year's show, meaning public interest in souped-up Japanese vehicles hasn't waned, showing us that there are still some die-hard car enthusiasts left in Japan. However, there were key players missing: Tuner giant HKS didn't have a booth (for the first time in the TAS's history), Trust/GReddy was a no-show because it went bankrupt last year, and, on the manufacturers' side, Mitsubishi, whose booth usually occupies a large section of the main hall, was nowhere to be found.

Taking up the slack was Toyota. The biggest car company in the world took this opportunity to show that it's still serious about performance-oriented cars. The Lexus LF-A was displayed at the booth (is this thing ever going to see the light of day?), as well as a number of race cars. Despite suspending development of its future sports cars, Honda displayed a number of compact cars, highlighted by its Modulo sports line. Tuners, big and small, were also represented, with stunning products from Mine's, Mugen and J's Racing, but it was clear to see that the financial crisis is having a critical effect on the Japanese tuning industry because one major component was missing at this year's TAS: skin.

The TAS has been notorious for the extravagant display of models (the human kind) wearing skimpy, often suggestive, outfits. Thousands of young men attend the Auto Salon just to take photos of the girls — they hardly give the cars a second look. Yet this year, only a handful of companies had female models spicing up their booths. We asked one official the reason for this, and he said, "Simple: Many companies are cutting back on costs, and the first thing to go is usually the girls."

Though some may find it amusing that a measuring stick for the financial state of the Japanese aftermarket industry is the number of scantily clad models at auto shows, it's a genuine indicator. And it says that things are far from good today, with perhaps darker days still ahead. My biggest fear? The quality of tuner cars will suffer. One shop owner said: "While we were able to focus on one product, or one company's product, in the past, we now have to expand our focus on as many cars as possible to stay in business, including minivans and economy cars. That stretches our resources and expertise, making it impossible to create that all-conquering tuner car."

But some companies are still holding fast. Shops like Mine's (specializing primarily in Nissan cars), Mugen (specializing in Honda cars) and Spoon (also specializing in Honda cars) are sticking to one brand and continuing to produce high-quality products. Now we have to persuade companies like Nissan, Honda and Toyota to keep producing sporty products for aftermarket companies to tune. Judging from this year's Tokyo Auto Salon, enthusiasm in sporty cars remains high in Japan, and the tuning industry, though suffering, is still alive.
 
#2 ·
The TAS has been notorious for the extravagant display of models (the human kind) wearing skimpy, often suggestive, outfits. Thousands of young men attend the Auto Salon just to take photos of the girls — they hardly give the cars a second look. Yet this year, only a handful of companies had female models spicing up their booths. We asked one official the reason for this, and he said, "Simple: Many companies are cutting back on costs, and the first thing to go is usually the girls."
:rofl: Classic.
 
#3 ·
I read that article. I think this has been some time in the making.Like the housing market, the boom coulnt go on for ever. I'm not worried about it though. Those of us who are cars and auto couture' will still be modding cars. I believe the aftermarket will remain, with a drop in the R&D of new products.I predict the industry will rebound quicker than some of the other economy related hobbies.

If this message makes no sense, it may be due to this message being the first time I've accesed the site on my crackberry.
 
#4 ·
Yeah i read on a few top companies like hks/top secret and other majors not showing up at the tokyo auto salon. At least it gives others a chance to shine. I also noticed that parts that used on the shelf are now made to order so we should plan ahead for that as well. I think we are okay so far, but hope the prices dont get jacked up
 
#7 ·
well the good thing is that only the enthusiasts are left....no more ridiculous "transformers" type body kit civics roaming the streets with 10 ft wings. the bad thing is that things wont ever be the same like the good ol days of import drag racing....
 
#8 ·
Actually it's probably the opposite. They are cheaper to manufacture, cheaper to buy, and cheaper than actual performance upgrades. That's the flip side of it anyway. I think the companies that might be on the rise would be like Mishimoto, SSAutochrome, Vibrant, etc. The guys a step under HKS, GREDDY and the like. Who know's the DJIA is at 6 now.... not looking to bright for anyone really.
 
#10 ·
The car enthusiest inside me is dying drastically. I don't feel like spending any more money on my cars at all. Now I think that one should buy a car that is fast from the factory and don't change a thing on it.
 
#12 ·
have your ups, have your down. welcome to economics.

The good stuff was not going to last forever, now is the bad part.

This is part of the entire market correcting itself. Auto were not going to be immune!
 
#16 ·
Here in the U.S. , the posers are going to be seperated from the real-deal shops.

Those that continue to outsource and knockoff other's ideas will fall by the wayside. I'm talking about big "names" in this industry too, not just the fly by nights.

Those that innovate and deliver on their promises shall be rewarded...IMHO!
 
#18 ·
I never bought anything from Greddy or HKS anyway aside for a boost gauge once. I don't know many people who modify their cars with major products from them now.

I think this was bound to happen. There are so many other small american companies out there who people are turning to for modifications. For my subaru, I have all smaller company parts with their own R&D specific for subaru.
 
#19 ·
I know all these great companies are going under... I hate to see it... things are just getting bad.. shows you how much we as Americans put cash flow into the world as a whole. That our bad times and in turn effect companies on foreign shores.
 
#20 · (Edited)
I think to take tuning to the next level again, the ones who can fabricate their own stuff, with the right understanding for the theories and principles for whatever use will be the ones who truly move forward.

I also think the lower-end companies like Mishimoto, JVTR, Megan, KSport etc, basically companies that arenot in the same level as Apexi, GReddy, HKS etc will thrive because they products are cheaper. We'll also see a bunch of previously unknown brands make headway into the market.

The smaller, less known companies will take center stage as they do not have the huge huge overhead of the big companies, allowing them to address the shrinking, hugely fragmented industry's individual inches.

I'm not saying they will be churning out good stuff from the get-go (although I hope so) but they are cheap, have smaller economies of scale and are more willing to take risks. In a way this is good, as opening markets to cheaper products (assuming the quality is decent) is always good.

The risk here is the proliferation of China-made pure knock-off junk that will not even arrive working properly, if it even arrives at all.

I'm not knocking Chinese made stuff in general (love the food and the women by the way) and I've bought a good number of products made in China for our business (property developer by day, we buy simple gardening and maintenance equipment from China) and have gotten what was promised to me; reliable for x-amount of time then need to replace. That's fair. But there are really crappy, good-for-nothing junk made in China that sells a lot to different industries.

However, looking at all the EMS offerings, one might be led to think otherwise!!!
 
#21 ·
As everyone has said once the economy goes into a slump. Toys are the things that will go first. So it really does seperate the hard core lovers and the smart shops and businesses to not be solely for one type of car. Those that keep themselves a float will come out still doing what they love to do.

Times like this only means R&D will slow down but that doesn't mean it will stop. So for some people it will be sucking in the money gut and counting those nickles and dimes.

Things will turn around eventually, its not a question of if. Its a question of when, so we all wait.. and shall see.
 
#22 ·
maybe all us car enthusiasts could march on washington and win a bailout of our own?
 
#23 ·
This is old news guys. the tuner industry has been on a downward spiral for a loooooong time now (at least 2 years). starting with china knocking off so many products years ago.

in the socal area alone we have watched tuner shops close down store by store almost monthly in some cases WEEKLY! its already so bad and doesn't seem to be letting up any sooner. our shop has seen the hit but with the "other guys" closing shop we end up gaining more customers and its going to end up whoever is left standing after it all will remain the big dawg. not to say we are hurting now. we have sooo many cars/projects now we cant even fit them all in the shop overnight! :bigthumb:

but it is sad when u have done business with a company for so long and then u get a call or call them up just to find they are/will be closing thier doors. even our competitors. :(

i was hoping to reclaim another 10lb"GReddy" trophy at GReddy Fest again this year but seems they wont be having another one anytime soon.
 
#24 ·
i just went to the auto salon 2009 and the article by Sam Mitani is partially incorrect. HKS "kansai" was there( i bought a pit shirt from them) and mitsubishi was there. they were in the third hall in the back. Greddy/Trust was not there which sucked, but there were plenty of other brands and tuners there on display. I have to say, the parking lot is better than the auto salon in some ways. seeing real deal street cars decked out like they belonged inside the auto salon was insane. i have pics i still need to upload for everyone. If anybody has ever wanted to go, i can say it was well worth the money. You only live once, start saving.