Word on the street is that HKS is pulling out of the US market and transferring all operations back to their Japan headquarters. A letter from HKS cited several reasons for pulling out of the U.S including poor economic conditions, a shrinking aftermarket, and the disaster in Japan.  What does this mean for the performance tuning market? For HKS? For other US companies?

To say we’re shocked is an understatement. Their letter leaves a lot of questions unanswered. Why would they walk away from millions of dollars in business in a segment where they are a dominant force (HKS is the #1 selling brand in within most performance parts distributors)?

Is it poor management of HKS USA? Non-existent profit margins from cut throat competition?  Something deeper?

Download the letter - HKS USA Closed – End of an Era – then let us know your thoughts and how you see this playing out in the comments.