Citing increased competition, a smaller market and a weak dollar, among other woes, Los Angeles-based HKS USA, an aftermarket manufacturer targeting tuner performance products, will close its doors in the United States and operate from Japan, where its founders, vehicle engineers, began.
The company plans to exit its U.S. operations by August. Its products will be available In the States from its Japan facility.
Jun Toyoda, HKS USA group chairman, sent a letter to its dealers and vendors at the end of April writing, “Today our industry is besieged by relentless pressures and challenges. The market for aftermarket products has been shrinking globally, and continues to do so. Significant economic recovery has yet to be seen in the United States consumer market. The U.S. dollar has been substantially weakened. In addition, the Japanese and world economies have been stricken further by recent natural disasters in Japan.”
HKS USA opened in 1982.
HKS manufactures and supplies turbos, superchargers, intercoolers, intake and exhaust systems, suspensions and other high-performance engine components. Japanese cars have been its aftermarket focus.