Arrma going bust ?

[Bury basher]

Hi guys , there is rumours in the UK that arrma are going bust or at least in some financial trouble!
Any one on here heard anything?
Hope it's not the case
It's hard enough to find parts here as it is lol

 

[Fahd]

Hmmm...

 

[72Z15SS]

Hmmm...

Seems China is a major contributor to the decline of a lot of companies while stealing their designs, then selling inferior products at a lower cost. Happens not only in the Hobby Industry, but Every Industry. Here is a good example! Sad to say I actually have 2 of these that I bought just out of curiosity because a real Les Paul Custom would cost around $4000.00. So many videos on YouTube with these, and so many being seized by Customs as counterfeit. They're clearly made in China, but stamped with Made In U.S.A. and even have a serial number... The 2 that I have even say Gibson on them...
https://www.aliexpress.com/item/New...lgo_pvid=bcc03cda-e284-4d7e-bf60-cb59b282663f

 

[muskito]

Also, Traxxas is suing Arrma for patent infringement for the Nero/Fazon interior shock design. Traxxas is also suing HPI for a patent infringement. Probably bleeding Hobbico of all their money for their defense lawyers.

 

[Fahd]

/sigh

I was a Traxxas fanboy for so long. Then I bought an Arrma.

Here's to hoping they're ok.

 

[skeeler]

Also, Traxxas is suing Arrma for patent infringement for the Nero/Fazon interior shock design. Traxxas is also suing HPI for a patent infringement. Probably bleeding Hobbico of all their money for their defense lawyers.

That seems ridiculous, given that inboard, rocker-based suspension has been used in motorsports for decades.

Here's to hoping they're ok.

I guess we all need to buy more Arrmas, Axials, and so on.

 

[Fahd]

I guess we all need to buy more Arrmas, Axials, and so on.

Breaks my heart. haha

 

[AT06]

Really hope they don't go bust, but with parts drying up not just in the UK, but now in the USA also, it's not looking great. It's getting to the point where I don't want to run too hard in case something breaks and I'm out of action for months. Luckily I have a brand new Kraton spare that's not even been taken out of the box!

 

[yz125ryder]

I think they are losing money on that 2 year warranty... I have seen some posts on here where people are taking advantage of it.

http://www.news-gazette.com/news/lo...erral-payout-upsets-confounds-ex-workers.html

 

[Bury basher]

Also, Traxxas is suing Arrma for patent infringement for the Nero/Fazon interior shock design. Traxxas is also suing HPI for a patent infringement. Probably bleeding Hobbico of all their money for their defense lawyers.

Not good news bro !

/sigh

I was a Traxxas fanboy for so long. Then I bought an Arrma.

Here's to hoping they're ok.

Me to mate , my outcast is in a different league to any traxxas I have owned

 

[AT06]

Just looking at the company accounts (although summarised as for some reason the detailed ones won't show) and they look to have been struggling for some time. 2016 accounts aren't available, but unless they are happy running a highly endebted company or things have perked up in the past year or two, things aren't great financially and this is probably corroborated with the fact Hobico as a whole are struggling. I would seriously consider if I were Hobico reducing down the lineup - most RC companies have always struggled with one thing in my opinion - too many models, meaning more parts to produce and stock, and this slowly drains a company in harder times. The more efficient the lineup, the less parts, the less stock needing to be held, the more they can focus on perfecting the platform.

Arrma as a standalone brand really just need 1 low end truggy or buggy for the entry market. 1 great 1/8 buggy and 1/8 truggy each targeted at the mid market and both sharing 75% of the parts, 1 short course again sharing a lot of components, and 1 "other" type car like the Nero for people into that kind of platform or even a 1/7 scale. That's a total of 5 cars, and that's plenty for a hobby in a declining market. They can then focus on really getting these right, and bringing out hop ups (not too many however) as demand grows.

Instead Arrma has no less than 29 different models, with thousands of individual components/parts. That's the issue right there. They have spread out too far, and as soon as there is a hiccup or downturn in the market that starts to cause them problems really quickly.

See below their summarised accounts.

Arrma Company Accounts

• AT06
• Mar 19, 2017
• 1

 

[Dustin Mustangs]

So I assume if Arrma bellies up, or worse yet Hobbico, the part supply for these vehicles would die too?? Yikes man, talk about instant paper weights. That makes me wonder if someone could buy the rights to produce these parts???

 

[72Z15SS]

Im sure there's a company out there who would purchase the rights. After all, there's a large market for them and a HUGE fan base here alone!

 

[robl45]

The parts issue is definitely a problem already, hope its not a sign of worse things.

 

[AT06]

Personally I'm in two minds - one side of me is saying stick with Arrma, it's a great platform. The other is saying jump ship to Tekno or Associated/Losi where parts support is a little more guaranteed. At the current rate with parts and the company accounts I posted, I really think it's on a knife edge whether they go bust or not. Think I'll keep one of my Keaton's and sell the other. Put it up as a roller but might put the electronics back in and sell it as new.

 

[Dustin Mustangs]

What part supply issues are you guys seeing? Every rc vehicle I have ever owned has had parts go on backorder from time to time. That is not a sign of trouble if that is what is going on...

 

[AT06]

Pretty much every part is on backorder with no ETA in the U.K. Means we have to buy parts from Europe where a lot of them are still out of stock (and postage is $20 for a $10 part) or the USA where again parts are getting difficult to find and postage/customs for a $20 part can be around $30 alone. Really frustrating, and getting to the point where I'm not bashing as hard in case something like a shock rod end breaks where parts are so hard to get.

HPI, Traxxas, Tekno, Associated and Losi, Mugen, etc are much easier to get parts for. Think it's definitely a problem not just with Arrma, but higher up the chain with Hobico.

 

[Unusual RC]

The parts issue is definitely a problem already, hope its not a sign of worse things.

Being an Arrma product owner since 2014, it is much better at the moment than it was.
But it will never reach Traxxas part availability.

 

[typhon34]

Well that sucks ! After owning tamiya's and traxxas for years i finally got my hands on a kraton and typhon last xmas. I had been wanting them for a while but had seen the V1 esc problems so i put it off until the V2 came out. Fantastic cars and my local shop always has most parts in stock... And if they don't they get them within 3 days.
....but, the other 3 shops within 30 minutes of me that used to sell arrma no longer do because of the V1 issues... And another 2 shops a bit further away don't sell them anymore either... Same reason... They got sick of returns so no longer stock the cars or parts. If this is happening world wide it cant be good for Arrma as a brand. Selling in 1 shop where a year ago they sold in 5/6 has got to hurt their account big time !

Stupid part is one of the shops asked arrma if they could swap out the v1 electrics with hobbywing parts so they could sell them without problem ? They were told NO because arrma thought it would make they brand look bad.... He sent back about 30 cars and doesn't get anymore in. But look what electics are in them now !!

I really hope they don't go bust as i love the cars and the quality... Best cars ive ever owned.
Either way... Time to stock up on parts !

 

[robl45]

What part supply issues are you guys seeing? Every rc vehicle I have ever owned has had parts go on backorder from time to time. That is not a sign of trouble if that is what is going on...

I've been in this hobby for 30 years and never seen parts backordered like this. Whenever I needed a part for my Losi LST2 I could get it, same with any other car. a part or two I can understand. Most parts being backordered is ridiculous.