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First Brands Files Bankruptcy

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653 views 20 replies 11 participants last post by  blackwidow  
#1 ·
First Brands....

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#3 · (Edited)
My last rayworstest brake shoes for the 9.3 were miss drilled for even mounting them in the backing plate! edit(Modern profit greed American junk). Glad I kept all the old stuff because it is back in service and fits perfectly.

It’s a damn shame what we’ve done to ourselves over the years. So I’m not surprised unfortunately. Thanks for the update!
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#4 ·
My last rayworstest brake shoes for the 9.3 were miss drilled for even mounting them in the backing plate china junk. Glad I kept all the old stuff because it is back in service and fits perfectly.

It’s a damn shame what we’ve done to ourselves over the years. So I’m not surprised unfortunately. Thanks for the update! View attachment 468259
Wow..... outsourced, poor quality, sales gone..... Quick profit, CEO gets his bonus.

Many Young Engineers don't have the experience to verify supplier capability, some don't even travel to see process. Seen this too many times.
 
#8 ·
She'll company backed by China....count on it.

People don't realize, when you sign up for Chinese Supplier (largest supplier in the world) you have to give them free access to patent info, and allow them to copy, sell against you in after market. Why Chinese Edelbrock knockoffs for sale...you know Edelbrock is made in China.
 
#12 ·
It's a shame that American ingenuity and quality are quickly being replaced with inferior off shore products just to save a dollar.
Hopefully, the man in DC will get some changes accomplished before his term ends.
Spot On. Years to develop.....hrs to give it away.

I knew of a "part" in which the metallurgy, and process was so difficult to make, OEM had 100% of the after market sales. It was to costly to try and replicate.

After sourcing to China. Mark my word, 6mo later they had copied it and was selling at half OEMs price. I guaranteed this would happen.

You have to give them the print to make it....:confused:
 
#16 ·
This could acquire a lot of business drama. Obviously FirstBrands is trying to eliminate or minimize competition in the brake parts segment as well as trailer hitches, maybe among others. They are behind in paying their bills to suppliers. No doubt they are late with some product deliveries. So both suppliers and customers are negativity affected. Then there’s the offshore/onshore thing. And that ugly word is a player - tariffs.

The web is interwoven deeply in this example.
 
#17 ·
Offy products are cast and machined here in the US, except for the knock offs licensed by the prior owners to Speedway. Those are made in china. Buy direct from Offy and get real American parts from a real American company.
 
#18 ·
Products built in China are to spec. If a company order's something you order it to a price point they send you a sample and you approve it. Items are built "cheap" as that is what the American company ordered to meet their profit target. So cheaper product made WAY cheaper then can be here and the winner is the seller not the buyer. This means more products. You can get higher quality items made in China it just cost more. I found this out, due to me new job were we source items from China but have them built to a higher spec. Main issue with China is if they like something you make they will make extra and sell themselves or to 3rd party.

Most those companies priced their products out of the market. Reese and Drawtite are WAY over priced and have been for decades, for what they are and the market has changed. Most all trucks now come with hitches and there are alot of cheaper options. This goes back to the above.
 
#19 ·
This isn't really about China, this is about an American privately owned company and greed. The strategy is simple:

1. Start by buying as many automotive aftermarket companies as you can via leveraged buyouts (LBO). For those not familiar with LBO's, the buying company pledges the assets of the target company to get a loan to buy that company.

2. As the total corporate debt increases, you buy your competitors. In this case it's Trico & Anco wipers, Airtex and Carter water pumps and fuel pumps, Raybestos brakes, Centric Parts (more brakes), Stoptech brakes. In trailers, there's Reese, Drawtite, Bulldog, Tekonsha, Fulton, Westfalia, etc. The list goes on.

3. When you think you've cornered the market (Hunt brothers and silver comes to mind) on aftermarket parts, you, offshore everything you can, fire employees and "streamline operations."

4. You raise prices, cut quality control to maximize short term profits.

5. While you actively monetize (squander) the remaining acquired corporate goodwill, you extract every penny possible at the expense of your customers and creditors.

6 Exit via bankruptcy

Did I miss anything?
 
#20 · (Edited)
This isn't really about China, this is about an American privately owned company and greed. The strategy is simple:
Correct, China is just a Vendor BUT people complain, saying crappy China parts, when all China is doing is building what the greedy CEO's spec, which is cheap parts. Both profit off the America consumer in the end and then that person blames cheap China parts. Point is people blame China not the real problem.