On October 22, 1969, the Datsun 240Z was introduced to America. For a mere $3,626 base price (approximately $21,500 today) the average Joe could come home with a state-of-the-art Japanese sports car. Sold as a 1970 model, a carburated 2.4L SOHC straight-six powered 150-horsepower through either a 4-speed “standard” or 3-speed automatic transmission. Keeping all that horsepower to the ground was a 4-wheel independent suspension and 175 SR 14 radial tires wrapped around 14″ x 4.5″ steelies. Thanks to the rack-and-pinion steering, front disc brakes and stiff hardtop chassis, the 240Z was also a nimble and responsive sports car.

On the inside, a wooden shift-knob and steering wheel complimented the driver’s controls while the vinyl covered the high-back bucket seats and the door panels. RPM and speedometer gauges were set deep within the dash while a pod of gauges lined the very top of the middle console. From the driver’s bucket seat all the mission critical factors could be seen with a quick glance.

The 240Z became an instant hit at dealerships as the reliable, stylish and exciting sports car that was incredibly affordable. It was so popular that it was one of the first Japanese cars that American buyers were willing to pay more than sticker price for. Over 16,000 units would sell that first year and double that during the year after.

To celebrate the 40-year mark of the Z-car, Nissan recently announced an upcoming 370Z 40th Anniversary Edition for 2010. Although the new Z packs a bit more punch than the original with it’s 3.7-liter 332 horsepower DOHC V6 engine and a few extra gears (6-speed in manual, 7-speed in automatic), it still offers the same essence of a sports car as it did back then.

It will also include the Sports Package that comes with the front chin spoiler and rear spoiler, plus a handful of performance upgrades. Such goodies include 19″ Rays Aluminum-Alloy wheels to clear the larger sport brakes, and a rear limited-slip-differential. Nissan states that the Anniversary Edition will be limited in production but has not released an official sticker price yet.

PRESS RELEASE

Nissan Celebrates Four Decades of Sports Car Leadership With New, Limited Edition 370Z “40th Anniversary” Model

October 15th 2009-Franklin, Tenn. – Forty Years After the Debut of the Original Datsun 240Z, the Iconic Z® Continues to Capture the Imagination and Passion of Sports Car Enthusiasts Worldwide

The 25th anniversary is silver, the 50th is gold.  And the 40th?  Another precious metal, or more correctly metal, rubber and glass – the Nissan Z®.  Forty years ago, on October 22, 1969, the Datsun 240Z arrived in North America, heralding a new era in sports car design.

Where previous sports cars were primarily a.) imported from England or Germany b.) expensive c.) fragile or unreliable or d.) all of the above, the new import from Japan offered the performance of a Porsche, the looks of a Jaguar and the price and reliability of, well, a Nissan.  The 240Z was a revelation to the automotive world – an affordable sports car that could be driven every day and was accessible to anyone with the $3,626 base price.

And though the price of a new Z® might have changed a little in the past 40 years, its unmatched value, style, performance and segment leadership remains stronger than ever.  To celebrate, Nissan has created a special, limited production version of the current 2010 Nissan 370Z Coupe, the 370Z 40th Anniversary Edition.  It will be available at select Nissan dealers nationwide beginning in spring 2010.

“Throughout the history of the automobile, a rare handful of cars stand apart as vehicles that not only capture the imagination of the world but also embody the essence of the automaker’s brand, engineering and ideals.  The Z® is just such a vehicle,” said Al Castignetti, vice president and general manager, Nissan Division, Nissan North America, Inc.

Changing Times – Literally
When the original Datsun 240Z debuted as a 1970 model, its design and performance were considered state-of-the-art: a 150-horsepower 2.4-liter single overhead cam inline 6-cylinder engine, 4-wheel independent suspension, 14-inch wheels, choice of a 4-speed manual or 3-speed automatic transmission, and a quarter-mile acceleration time of 17.1 seconds at 84.5 miles per hour.  The 240Z was conceived as a closed coupe body, rather than the typical open-top sports cars of the age, to enhance body rigidity and, therefore, improve handling and durability.

Needless to say, a lot has changed.  Today’s definition of state-of-the-art, as expressed in the sixth generation Nissan 370Z, includes a 332-horsepower 3.7-liter dual overhead cam V6 engine with VVEL (Variable Valve Event and Lift), lightweight 4-wheel independent suspension with extensive use of aluminum components, available 19-inch super lightweight forged alloy wheels, choice of 6-speed manual transmission with innovative SynchroRev Match™ or refined 7-speed automatic and independent quarter-mile acceleration times of 13.5 seconds at 106.6 miles per hour.  And today, the recently introduced 370Z Roadster – with its automatic-operation fully lined cloth top, offers nearly the same body rigidity and performance as the rock-solid 370Z Coupe.

Also, where the 240Z offered what many considered “luxuries” in a sports car – including roll-up windows and radio, today’s 370Z is offered with items such as Nissan Intelligent Key™ with Push Button Start, Bluetooth® Hands-free Phone System, XM® Satellite Radio and an advanced Nissan Hard Drive Navigation System with touch-screen, XM NavTraffic® Real-Time Traffic Information and NavWeather®  (XM® subscription required, sold separately), Zagat® restaurant guide, 9.3GB Music Box hard drive for digital music storage and playback and a USB fort for iPod® connectivity.

About the Nissan 370Z 40th Anniversary Edition
The 370Z 40th Anniversary Edition starts out as a 370Z Coupe Touring model equipped with manual transmission and Sport Package (including SynchroRev Match™, front chin spoiler, rear spoiler, Nissan Sport Brakes, 19-inch Rays forged aluminum-alloy wheels and viscous limited-slip differential) and adds a premium “40th Quartz” exterior color and red leather-appointed interior.

Additional exclusive equipment includes a high-luster smoke wheel finish, red brake calipers and 40th Anniversary badges on the rear hatch and front strut tower brace.  Inside, along with the red leather-appointed seats are red door panel inserts, 40th Anniversary seatback and floormat embroidery, red stitching on the center stack, shift boot and kneepads, smooth leather steering wheel with red stitching and a plaque of authenticity.  Every 40th Anniversary Z® also comes with a commemorative premium satin car cover.

Pricing of the 370Z 40th Anniversary Edition will be announced closer to its on-sale date next spring.

A Brief History: Six Generations of Z®
The journey from the original 240Z to the current 370Z, of course, made a number of interesting stops along the past 40 years.  Interestingly, the 240Z might not have made the journey to America in the first place, if not for the efforts of one man.

Though many, many people were responsible for the design and engineering of the first generation 240Z, its success in North America can be attributed to Yutaka Katayama, who was president of Nissan’s U.S. operations at the time.  Known affectionately as “Mr. K,” he was convinced that the company’s new sports car design would be a hit in the U.S.  There was just one problem – the vehicle’s name: the Fairlady Z (which is still used in the Japanese market today).

With a name change for this market to “240Z” and some aggressive marketing, including early motorsports success, the Z® became an instant hit – bringing attention and buyers not just to Z®, but also to the entire brand.

After overseeing Nissan’s growth in the U.S. in the ‘70s, Katayama returned to Japan and remains, to this day, linked to the Z®’s success here and around the world.  On September 15th, 2009, Mr. K celebrated his 100th birthday and received cards and birthday greetings from Z® lovers everywhere.

In 1974, as the engine displacement climbed to 2.6 liters the name changed to 260Z.  The 2+2 model with an extended roofline and tiny back seat also appeared.  In 1975, engine size increased again to 2.8 liters and the name changed to 280Z.  Z® cars continued to dominate on the racetrack, with Pete Brock, John Morton, Bob Sharp and P.L. (Paul) Newman among the many talented drivers.

Z® sales continued to climb with the introduction in 1979 of the new second generation 280ZX.  Now priced at just under $10,000, the 280ZX was named Motor Trend “Import Car of the Year” and sales passed 86,000 units.  T-tops and a turbocharged engine followed in the early ‘80s.

In 1984, Z® engine displacement increased again, with a 3.0-liter V6 replacing the classic Z® inline-6, and the 300ZX was born.  Also, a specially equipped model celebrating the company’s 50th anniversary and priced at $25,999 was introduced.  The 1984 Z® was the best selling sports car in America.

The next breakthrough in Z® history came in 1990 with the arrival of the totally redesigned, fourth generation 300ZX.  Offered in two-seat and four-seat 2+2 models, it offered an unheard of 222 horsepower and a top speed of 150 mph.  A few months later, the 300ZX Turbo followed – with 300 horsepower, a 160-mph top speed and a $33,000 price tag.

The 1990 300ZX captured the Z®’s second Motor Trend “Import Car of the Year” award, along with a spot on Car and Driver and Road & Track “10 Best” lists.  The 300ZX also captured Automobile’s “Design of the Year” and the first of four “All-Stars” awards.

By the mid-‘90s, however, sports car sales in general were slowing and the Z® had lost its “affordable” sports car positioning.  With Z® sales declining sharply and the core “value” positioning no longer part of the “Z® DNA,” sales of the Z® in the U.S. slumped and sales were stopped following the 1996 model year.  The last 300ZX imported into the U.S. was inducted into the Petersen Automotive Museum in Los Angeles.

The next chapter of the Z® history came just before the end of the century.  In 1999, Nissan and Renault formed what has become the highly successful Renault-Nissan Alliance.

Mr. Carlos Ghosn was assigned by Renault to head the new management team.  Among his first tasks was not just to look at the business aspects, but to find the “soul” of the company.  In interview after interview, people inside and outside the company brought up one model to him, one letter: Z®.

Development of the new Z® began later that year, with the return to the values of the original 240Z – a car that sports car enthusiasts would look forward to driving everyday; quick, inspiring and affordable.

In summer 2002, the Z® was reborn with the introduction of the 2003 350Z.  It was delivered, as promised, with an MSRP of under $30,000.

Following the 350Z’s unprecedented success, the sixth generation Z®, the 2009 370Z was launched last December.  Now the little sports car that could comes full circle with the announcement of the 370Z 40th Anniversary Edition.

“It’s almost inconceivable that it has been 40 years since the original 240Z changed the course of Nissan and the concept of affordable, everyday sports cars,” said Castignetti.  “In a year, 1969, marked by the first man to walk on the moon, the 240Z made a remarkable first step of its own.  Happy anniversary, Z®.”

CONTACT: Nissan North America, Inc.

Although there has been a lot of hopes that Toyota would return to it’s roots with small rear-wheel-drive coupes perhaps under the Scion badge, the brand came without any real performance models worthy of the car enthusiasts’ fanfare. That is until last Tuesday when Toyota officially revealed that there was truth in the rumors about a revival of the iconic sports coupe.

The FT-86 Concept, a joint development project with Subaru, will debut at the Tokyo Auto Salon next month with plans that the production model will be within dealer showrooms by late 2011. Toyota hasn’t said much about the FT-86 yet, but it has been long rumored that Toyota’s RWD chassis will be powered by a Subaru-derived 2-Liter boxer four in naturally aspirated form.

Drawing inspiration directly from the AE86 sports coupe, the FT-86 concept was designed by Toyota’s European Design Development (ED2) studio in Nice, France and features many of the design cues from Toyota’s FT-HS hybrid concept unveiled at the Detroit Auto Show 2007.

Subaru has not commented yet whether or not they will add their all-wheel-drive system but has confirmed that the styling will be distinct. Other confirmations of the concept to production is a six-speed manual transmission and 2+2 seating arrangement.

A few days earlier, Mr. Toyoda made criticism on the lack of excitement in the industry saying that, “Surely it is us — the automakers — who have abandoned our passion for cars”. Already the industry is buzzing with delight that Toyota has made a move back in the right direction.

If you just can’t wait until 2011 to drive the production model, you can take a virtual test-drive of it in Gran Turismo 5. Plus, you get to skip the Toyota and Subaru salespeople too. (Not that we don’t like sales people, they just don’t like us, especially when we take every gear to redline.)

More pictures:

Video (added 10/19):

The rules placed on the vehicles eligible for the rebates are not the only regulations put in place. The folks who are going to be receiving the “clunkers” have specific rules as well. The bottom line is that the vehicles are destroyed so they cannot find their way back on U.S. roads. This has many if not all auto recyclers upset about the program. In fact, they downright despise it. The salvage (or recycler) industry argue that the program will hurt their bottom line.

New car dealers are advised to replace the oil in the clunkers with a sodium silicate and to run the motors in order to seize them. This ultimately destroys any and all parts that can be removed from the engine before being sold to a scrap yard. Since engines and drive trains make up about sixty percent of the business acquired by the salvage industry, industry leaders argue it would significantly hurt the industry. All of this comes after one of the worst years in the aftermarket industry’s history where more than a dozen auto-supply chains had filed for bankruptcy.

Additionally, not only do the regulations on destroying the vehicles hurt the salvage industry, but it is also affecting the low income customers who can’t afford newer cars even with the rebate program. The crushing of the vehicles will destroy parts, which will minimize the availability of salvaged and refurbished parts, and in turn cause prices to go up for any remaining parts. The rise of these prices would even hurt low income customers that use the parts to keep their vehicles running.

In terms of the effect that this program may have on the market of classic Japanese vehicles is a little bit unseen. With the regulations placed on the vehicles that can be traded in, it’s safe to say that an old Mazda RX-2 that is in a garage somewhere will not be destroyed. It would also be unlikely that there will be any Datsun’s hanging out of a dumpster at the dealership. However, cars that are not yet considered classics may be harder to find in the future.

Even though this program is meant to help the industry, it’s hurting at least an equal percentage. It’s great that the auto dealerships have seen a rise of thirty to fifty percent rise in sales because it will definitely fueling the economy, but for every car that is traded and destroyed a countless number of parts are also being wiped off the face of the earth. How this ultimately affects the economy and people’s lives is yet unknown, but let’s hope that there are more positives than negatives that come out of this.

Do you want to find out how to qualify for the CARS (Cash for Clunkers) program? Read our article on the program rules.

Even though the program started a month ago, the 136-page rulebook with detailed regulations was released just this last Friday, and by the looks of it, there are very stringent obligations if anybody is interested in taking advantage of this deal.

If anybody has a car to be traded into the Cash for Clunkers program, it must be a 1984 model year or newer. This can be tricky however; for example, if the car that is being traded was manufactured in July 1984 and the new vehicle was manufactured in August 2009, it will not qualify. The trade-in and the new vehicle must be less than 25 years of each other to the month of manufacture.

The fuel economy of the trade-in must have a combined city and highway rating of 18 mpg or less. (The fuel economy of any vehicle can be checked at this website: www.fueleconomy.gov.) One exception to this rule is the case of work trucks which may not have been rated for fuel economy and will be judged by instead by age. They must be from 2001 or earlier, but also be within the 25 year mark.

The total amount of the refund will be determined by how much of a difference there is in fuel economy between the two vehicles. If the difference 4 mpg and 10 mpg there is a $3,500 credit; if it is more than 10mpg then there is a $4,500 credit.

Even with all that said, don’t go to the dealership thinking and expect to take the old ’89 Ford Bronco that’s been rusting away in the backyard and expect to get $4,500 for it. The most overlooked rule is that the vehicle being traded in must be in driving condition, registered in a timely manner and insured for at least a twelve full months prior to the trade.

Qualifying purchases must be model year 2009 or 2010 and can be purchased or leased. However, if leased it must be leased for at least 5 years. The new vehicle also has a maximum MSRP cap of $45,000, so your dream Skyline GTR will not qualify under the program.

There are a lot of different and precise requirements for qualifying for the rebates, so make sure to research as much as possible before taking the plunge. All of the regulations and FAQ’s can be found at the official Government page: www.cars.gov.

Short History
In 1962 Safro started “Jack Safro’s Pewaukee Motors” selling used cars to the local area, but it was not until 1976 that Safro began to sell a relatively unknown Japanese brand in Wisconsin. His dealership became the largest dealership in the Midwest it’s first year, selling 42 new Toyota’s.

Safro also became one of the first eight United States Lexus dealers in 1989. He stated in a New York Times interview at the time that, “he was not shocked by the scores of buyers who have been willing to spend more than $35,000 to buy Toyota’s new luxury cars [but rather] to see what many buyers are trading in: late-model Cadillacs and Lincolns.” He estimated about 10 Cadillacs, several Lincolns and European luxury cars were traded in within the first couple weeks of opening.

Mecum states that “Jack Safro began his association with automobiles by working a night job in high school recapping tires. In his early days, Jack drove modified cars and midget cars at Wisconsin tracks, demonstrating one facet of what was a life-long passion for cars.”

Jack Safro Estate Collection
Safro’s collection put on auction consisted of 50 cars total which included a 1966 Land Cruiser FJ40 which sold for $47,500, a 1966 Corona Sedan with 8,769 original miles which sold for $36,000 and more. The prices stunned Rob Sass at the New York Times, who said, “Until this weekend, there have been few if any large collections of Japanese cars sold en masse in the United States. The Jack Safro Collection … maybe have been the first such collection to sell publicly.”

In any case, we’re not surprised the prices these classics are fetching and we know this will not be the last time someone stumbles on a large Japanese collection.

1966 Toyota Corona Sedan – $4,500
1.9 liter 4 cylinder original engine
3-speed manual transmission
Radio delete

1966 Toyota Land Cruiser Soft Top FJ40 – $47,000
Complete professional restoration
6 cylinder 3-speed manual transmission
6,819 believed to be original miles
Lift kit with Alloy wheels

1968 Toyota Corona Utility Pickup – $11,000
1.5L engine 4-speed manual transmission
Rare LHD pickup version
Complete history and owners manual

1968 Toyota Corona Coupe – $9,250
2.0 liter 18RG twin cam engine
Dual side-drafts
72 Celica 5-speed Manual transmission with bronze clutch
Narrowed ‘79 Supra rear-end with Moser axles
Rebuilt and lowered suspension

1971 Toyota Mark II coupe – $12,000
2.0 liter 4 cylinder SOHC engine
Automatic transmission
Complete rotisserie restoration
Toyota’s first luxury coupe

1973 Toyota Land Cruiser Wagon FJ55 – $19,000
6 cylinder F-series engine
3-speed manual transmission with overdrive
Frame on restoration
8-track stereo
Alloy wheels

1976 Toyota Corolla SR5 coupe – $11,000
1.6 liter 185hp 2T-C engine
5 speed manual transmission
2 racing bucket seats
Full roll-cage
Past SCCA SE region showroom stock
Race prepped for vintage rules
(Apparently) Street legal

1981 Toyota Celica Supra – $22,000
2.8 liter 5M-E straight-6 with electronic fuel injection
automatic transmission
8,774 original miles

1981 Toyota Trekker 4WD pickup – $22,250
Concept approved by Toyota in collaboration with Safro and Winnebago
Frame on restoration for Jack Safro’s 40th anniversary with Toyota
4 cylinder SOHC 5-speed transmission
SR-5 gauge package

1986 Toyota Cressida Limousine – $7,500
2.8 liter 5M-GE straight-6
Armbruster Coachworks in Ft. Smith, AK conversion (1987)
1 of 10 built
Television, 2 radios, cellular phone
Wet bar and wine race

2001 Toyota Prius Hybrid – $13,000
Paul Newman’s personal car personally sold by Jack Safro
1.5L engine with electric drive motor
13,917 actual miles
Automatic transmission

2004 Toyota Tundra Long Bed Truck – $7,750
Customized for “The Benchwarmers” by Picture Car Warehouse of Los Angeles
Modeled after Darrell Waltrip’s Craftsman Tundra
Made streetable with lights, mirrors, etc.
3.4 liter 5VZE V6 engine
Automatic transmission

2006 Lexus RX400h – $55,000
Paul McCartney Signature Edition
Designed by McCartney and Lexus for 2005 US Tour
One and only, 450 original miles
Every available factory option
Mark Levinson custom sound system
Autographed by Paul McCartney

1973 MG Midget Convertible – $16,000
1.6 liter 4AGE 16 valve engine
Toyota 5speed transmission
Toyota rear-end and brakes
Full roll cage, ready for track days!

If anybody happens to know where these cars ended up, please let us know!

Question: Are you surprised that these cars (along with other Japanese classics) are beginning to be considered as collectible and are gaining in price? Give us your opinion below in the comments.

Toyota’s income dropped a dismal 437 billion Yen ($4.4 billion USD) from the year prior for fiscal year ending in March. Making it their first net loss in 72 years since Toyota was founded.  This shows that even historically strong players in the market are not immune to the current recession.  The loss comes only one year after taking over GM for the top automaker in the world based on sales.

The car maker announced this week that they will be cutting their production by almost 30 percent, causing a significant number of jobs to be eliminated.  Both Toyota and Lexus brands will be affected since the sales of both companies took a hit of almost 30 percent. The majority of jobs lost this year will be overseas in Oye and Thailand. However, between the two factories Toyota is expecting to eliminate 15 percent of their workforce.

There are a many different reasons for Toyota’s loss. All over the world and especially in the US, people are just not able to buy cars at the moment.  Unemployment rates in the US are at some of the highest rates in decades.  Those who are lucky enough to have jobs are even taking major pay cuts in their salary.  On a global scale, overall new car sales are down in the US and many other countries in Europe, South America and Asia.

Another factor in Toyota’s profit loss is the fluctuations in the money market.  The Dollar is at a 13 year low against the Yen at almost 100 Yen to a Dollar. The prices of raw materials used are majorly affected and with the value of the dollar dropping, we see how the U.S. crisis has sent a ripple effect around the world.

However, what goes down must come up and history has shown that economic issues like this come and go. Despite the recent downturn, Toyota does have plans for the future. Even though their homeland competitor Honda recently introduced the new and improved Honda Insight Toyota is already in the works of building a smaller more affordable version of the Prius. Toyota knows that it is imperative to retain customers from their main rival, so they will have to position themselves to put up a strong fight coming out of this downturn.

Considering the economic condition of the world and the major struggles of other car companies, it is not a complete surprise that Toyota would end up feeling the pinch.  It is less than a year until we will be in a new decade and even though things are tough now it is intriguing and exciting to see what our car companies have in store for us.  As cliché as it may be, it’s true when they say only time will tell.

Sponsored by Rep. Betty Sutton, D-Ohio, and co-sponsored by Rep. Bruce Braley, D-Iowa, John Dingell, D-Michigan, and Candice Miller, R-Michigan, the bill originally offered vouchers starting at $3,000 to owners of vehicles that are at least eight years old upon trade-in to purchase more fuel-efficient vehicles. The aim of the bill was to give owners of “high polluting automobiles” tax-payer paid vouchers to help replace the vehicles with “new fuel efficient and less polluting automobiles or public transportation”. But it is not quite as simple as it seems be on the surface.

With non-North American makes originally excluded, the Detroit Three automakers and the United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) supported the bill while foreign automakers and aftermarket associations opposed the bill.

SEMA and AAIA have argued that the bill could do more harm than good by allowing individuals to take advantage of taxpayers by trading in cars that are underutilized, especially if those individuals own more than one car. SEMA states that the program may produce artificial increases in car sales, but will not do enough to reduce emissions, increase fuel efficiency or decrease dependency on foreign oil. They further attest that the program will eliminate a source of parts for aging cars and consequently be a threat to businesses in the industry which serve those vehicles.

“Cash for Clunkers would prematurely destroy vehicles and their valuable parts and components, denying more affordable used vehicles and parts to millions of low and middle income families…”

AAIA has added that “Cash for Clunkers would prematurely destroy vehicles and their valuable parts and components, denying more affordable used vehicles and parts to millions of low and middle income families who cannot afford to purchase a new car even with a $3,000 to $5,000 government voucher.” They suggest that the scrappage program will increase landfills and junkyards and increase the demand of energy and resources to build new cars.

Those who support the bill call the arguments “dubious” stating that useful parts could stripped off vehicles before they are destroyed citing that 84 percent of cars by weight are recycled and 95 percent of vehicles go through some sort of recycling process in the U.S. Supporters state that vehicles which are collectible and/or historical would also be unaffected as owners of such cars are unlikely to take advantage of the program. As evidence of success, supporters point to programs in foreign countries such as in Germany, the European Federation for Transport and the Environment.

Through multiple revisions, the final guts of the CARS Act hinges on gas efficiency. Passenger cars and light trucks must get less than 18 MPG for owners to be eligible for vouchers. The program now applies for both imported or domestic vehicles as long as the new car gets at least 4 MPG more than the trade-in model. At 4 MPG, owners receive $3,500 vouchers. If the mileage is at least 10 MPG or better, owners receive $4,500 vouchers towards the new vehicles.

Trade-in’s will still be scrapped in order prevent gas-guzzling vehicles from re-entering the used car market.

The program may be offered only to the first 1 million customers, so anyone who is interested will have to act fast. However, Brian J. O’Conner, columnist at Detroit News warns that although “Cash for Clunkers seems like a no-brainer” keep in mind the depreciation of a new car compared to a slightly used model. He exemplifies buying a new Pontiac Vibe at an average of $19,800 which becomes $15,300 (after a $4,500 voucher for trade-in) to a slightly used 2-year old Vibe for $13,200.

Currently serving in the US Army, Alan has recently returned from his tour. Cruising with the top down in his S2000 and enjoying the wind on his Gixxer is what he does in his spare time. His contributions include writings and photography to many of the articles on JDMOrigins.com.

For the future, like many other manufactures in the industry, HKS says they plan to stop their participation in major industry shows, “including SEMA, PRI and Tokyo Auto Salon” but instead they will increase in operations and research and development to ensure products are delivered to the market more optimally.

It looks like even though HKS will be increasing R&D efforts, we won’t be seeing any cool new products and cars from HKS at the big shows for the near future. Maybe instead we can get them to remake some nostalgic 1980’s style HKS gauges?

PRESS RELEASE

HKS CO., LTD. & HKS USA, INC. ANNOUNCE STRONG EARNINGS

LOS ANGELES (November, 2008) – HKS Group, the premier manufacturer and supplier of automotive performance systems, components, and light-weight aircraft engines, has reported strong earnings for HKS Co., Ltd. and its subsidiary HKS USA, Inc. Anticipating the significant downturn in the global economy over the last year, HKS implemented a “lean operations plan” early in 2007 that was a major factor in increased earnings and financial strength, positioning the company to come through the on-going downturn in an even stronger position.

Below are the financial highlight statements release by HKS Japan, LTD. and HKS USA, Inc.

HKS Co., Ltd. Financial Highlights (FY 2008)

HKS Co., Ltd. FY 35 (2007-2008)

During HKS Co., Ltd’s Fiscal Year 35 (CY2007-2008), the Japanese Automobile market declined to its lowest level in the past 30 years due to global economic anxiety resulting from record price of crude oil and the U. S. sub-prime financial crisis. Japan’s top selling car segments were high MPG small cars and Mini cars while other segments declined significantly.

Recognizing the difficult global situation and domestic challenges, especially the saturated and stagnant Japanese Aftermarket Auto Parts Industry, HKS has executed a three prong corporate plan to grow and prosper in spite of the economic storm. These are; First, to reinforce and enhance our market position as a pioneer and the leader in the industry. Second, to aggressively expand our business in the overseas markets. Third, to cultivate new business opportunities by utilizing our technological expertise and experience.

Despite, the successful launch of a totally new electronic device, “CAMP2″ and aggressive expansion of the HKS GT Supercharger and Suspension product lines, the Japanese After-Market has declined due to less consumer consumption caused by the rise of consumer price index. At the same time, HKS Co., Ltd.’s business with Original Equipment Manufacturers (OEM) was growing. The newly introduced Supercharger for watercraft was a solid contributor to sales due to a major OEM contract. Because of these factors, the revenue from the Japanese market has increased from last fiscal year.

For the overseas markets, the weaker European economic trend was a concern, but businesses with OEM helped increase the revenue in that region. Additional distribution channels brought increased revenue in the Asian region. However, the U. S. economic downturn triggered by the sub-prime financial crisis and the conclusion of a contract for automobile assistive device to OEM resulted in decreased revenue from the North American Market. Overall, the revenue contribution of overseas markets during this fiscal year was lower than the previous fiscal year.

As a result, the consolidated sales with our subsidiaries for the Fiscal Year were 8,551 Million Yen which was a 2.3% increase from the previous fiscal year.

HKS-Strong Earnings

On the subject of profit, the incremental sales, cost reduction due to a higher level of manufacturing operations, and expense reductions in the sales and marketing area, successfully offset the material cost pressure due to global material cost hike.

As a result, The Operating Profit for the Fiscal Year was 392 Million yen (US$3.92 million) versus previous FY loss of 47 Million Yen (US$-.47 million), the Current Profit was 390 Million Yen (US$3.9 million) versus previous FY loss of 9 Million Yen (US$-.09 million), and the Net Profit was 223 Million Yen (US$2.23 million) versus previous FY loss of 166 Million Yen (US$-1.66 million).

*100JPY = $1 USD

HKS USA, Inc. Financial Highlights (FY 2008)

HKS USA, Inc. FY 2008

As HKS Co., Ltd.’s public disclosure statements show, the HKS Group is financially sound, with its substantial asset base of 11 Billion Yen (US$112.0 million) and liabilities of 3 Billion Yen (US$30 million). In fact, liabilities have been reduced by 9% versus prior fiscal year as a result of efficient operating and accounting controls. HKS’s solid financial standing will allow the company to continue to implement its R&D and dealer support plans during the global downturn.

For the fiscal year, the North American operation (HKS USA, Inc.) made a significant contribution to the HKS Group despite the developing U.S. financial crisis and significant decline in auto sales and aftermarket industry sales. While sales revenue decreased by 18% versus prior fiscal year, profit increased 11% versus prior fiscal year as a result of the implementation of a “lean operations plan” and cost containment.

Plans and Outlook for Next Fiscal Year

The HKS Group forecasts that the global economy will continue to lose momentum into calendar year 2009, placing significant pressure on the auto and aftermarket industries. In spite of the weak global economic outlook, HKS believes it will continue to perform successfully in the Fiscal Year 2009 (FY36) with the benefit of the HKS Group’s strategic direction already in place. The “lean-operations plan” will continue to go forward in HKS’s relentless efforts to contain and reduce costs.

To achieve better capital efficiency – return on capital employed – HKS Group will not participate in major industry shows, including SEMA, PRI and Tokyo Auto Salon. The capital will be employed in operations and R&D to ensure all new products are delivered to the market to better support our loyal customers and strengthen the HKS Dealer network.

HKS will continue to invest in our technological resources (R&D) and continue to lead the industry in innovative driving performance products. The efficiency and productivity improvements described above will have a positive impact on HKS Group earnings and growth

About HKS USA, Inc.

HKS USA, Inc. is a leading manufacturer and supplier of automotive aftermarket performance systems, parts and accessories. Delivering its products to both the import and domestic car markets, HKS has been recognized for its engineering and performance excellence in the automotive industry since 1973. Established in 1982, HKS USA, Inc. is a wholly-owned subsidiary of HKS Company, Ltd. Japan and distributes its products through its worldwide dealer network. For more information about HKS USA., visit their website at www.hksusa.com.

Contact:  Michael Caudill, DRIVEN, (951) 587-9465

The press release indicates that their actions are in response to, “the recent extreme downturn in the world’s banking market”. It further states that GReddy will not be exhibiting in this years SEMA Show.

Although much of the products from TRUST and GReddy are developed and manufactured with newer makes and models in mind, they still manufacture and sell performance parts for older makes and models. In addition, many Japanese classic car enthusiasts swap out factory engines for more favorable late models, so news of a large aftermarket manufacturer potentially failing would upset the industry.

TRUST has been in business since 1976 and founded GReddy in the U.S. in 1994.

PRESS RELEASE

GReddy looks forward to continuing to provide quality high performance parts for years to come.

IRVINE, CA
OCTOBER 10, 2008

To insure the long term survival of the GReddy brand in the USA, GReddy Performance Products, Inc. has opted to file for Chapter 11, Reorganization, on October 10, 2008.

GReddy sales, customer service, R&D and operation will continue to conduct business as usual, through this process. The flow of inventory and new products will continue and will not be affected. Normal GReddy operating hours will remain as before.

This reorganization change is result of last month’s Minji-Saisei-Hou filing of GReddy’s parent company TRUST Co. LTD. in Japan. Although TRUST has now returned to production, and GReddy Performance Products has maintained normal business practices, the recent extreme downturn in the world’s banking market has made this option the best prospect for continued operation and expansion of the GReddy brand.

It is also in the best interest of GReddy’s future to join some of GReddy’s competitors in the industry, in not exhibiting in this years SEMA Show. The withdraw is regretful, but necessary. This does not however mean development and construction of new products and demo vehicles which were planned to debut at SEMA will stop. Instead, GReddy plans on releasing news of these items through other media outlets very soon.

GReddy Performance Products, Inc. and it’s staff would like to thank all the kind well-wisher, customers and industry associates for their support in these challenging times. GReddy looks forward to continuing to provide quality high performance parts for years to come.