Keisler Engineering Has Filed for Bankruptcy

[Ghoste]

Hmm, why was he losing employees (plural) to employee start ups?

[1970Moparmann]

... they were a good vendor for the Mopar community

They were, BUT, out of all the vendors I worked with on my 68 Charger, they were the worst for customer support!!  I don't remember the guys name that was there, but he was a major a-hole.  I was never so frustrated with a company than Keisler.   No communication, rude, no form of help, on and on.

[Ghoste]

He used to make a bunch of stuff for the 66-67 group and I bought a couple of things from him for which the quality was fantastic and I had no issues with him but I do recall that if anyone questioned him about a parts quality or had problem on the 66-67 mailing list he could turn nasty pretty quick.

[TUFCAT]

Even some guys here had problems with customer service....

http://www.dodgecharger.com/forum/index.php/topic,68820.0.html

http://www.dodgecharger.com/forum/index.php/topic,25819.0.html

[Ghoste]

The splinter companies that came from his former employees, are they doing okay?

[4cruzin]

I hope no ones name is on that long list of creditors that they will probably screw!    

[autodynamics]

Here is what shafi posted on facebook...

An Important Message from Shafi Keisler, Founder of Keisler Engineering.

Dear Customers, Friends and Associates of KEISLER Engineering;

On January 16 2014, I halted operations of Keisler Engineering Inc by filing it into Chapter 7 Bankruptcy. The motivation to place KE into Ch7 was a very recent decision, spurred by a run of order cancellations and refunds by concerned customers. Many of these concerned customers had spoken to our competitors that have been pouring on the negativity and rumors of KE shutting down since 2008. These are primarily two (2) competitors - one located in Cookeville TN and the other in Sacramento CA.

The order cancellations created a cash flow problem for KE, and placed new customer orders at risk. I took the initiative to refund all new order deposits going back to Thursday January 9 2014 once I realized the company was at risk of closure.

KE had a bright start to 2013, filling nearly 400 SS700 orders, along with RS, TREMEC and A41. Sales numbers overall were strong for the first half of 2013. KE's second half of 2013 was marred by supply and pricing problems at Legend Gear & Transmission and its gear manufacturing partner Abundant Manufacturing Inc in Statesville NC. AMI's own business problems stifled production of the components needed to build the LGT700 base unit. This was worsened by KE's inability to pay its 2011/2012 past due to AMI of nearly $300K, along with Legend's own inability to pay its 2013 past due to KE of nearly $100K. Then Legend implemented a tremendous price increase to KE of $900 per unit in the 3rd quarter, and changed their selling terms to require a $1000 down payment 12 weeks in advance of shipping the non-customized LGT700 base unit. And every shipment of LGT700 units or components KE received had quality problems requiring weeks of delays while LGT had to replace parts. And no Legend assembled LGT700 ever met quality standard, which required KE to disassemble and rework, causing a major slide in delivery. Every one of these factors impacted KE's financial strength and the ability to fill these sold SS700 orders. I was seeking to replace Legend/Abundant Mfg with a better supplier for 2014.

The Rallye Sport program was well on its way to becoming a brand new transmission, and completely independent of Legend. At the time of KE's closure a majority of the orders were in-process to be completed.

The TREMEC program including the TKO and T56 was the foundation of the Keisler 5-speed so widely known since I developed these kits and the market as a whole starting in the late 90s. By 2005, KE was generating close to $1 Million dollars in NET profit, which is why the competitors referenced above were so keen to do whatever it takes to grab business away from KE. By 2008, my former sales manager GF and supposed friend RH who I gifted an entire business to him to begin his new career, unknowingly began selling the CA competitor's product under my name and customers called us complaining. I confronted them and learned they were not my trusted friends. In fact they used everything I taught them in sales, marketing to get their piece of the market pie at my expense. The new status quo with them and the CA competitor was to insult KE, and this became their method of operation ever since. The greed factor with GF/RH escalated to a new level in 2010 when they hired one of our longtime salesman to slander us publically in the forums and ultimately take more than 1.4 Million in sales from us, according to his deposition in Knox Chancery Court where he was deposed during the 2012 trial Keisler Engineering vs. Gene Charsha. During this trial, which the transcripts were written, GF took the stand and attempted to convince the judge that their business was substantially different than KE and that they were not a competitor. The judge did not agree with GF and ruled in our favor. But KE was saddled with over $30K in legal costs to fight this battle. Additionally a number of vendor relationships were further compromised as GF solicited some of KE's vendors to make the same product for his business, including propriety bellhousings and driveshafts components to name a few. Returning from the 2011 PRI trade show in Orlando FL, I had to go to one of my vendor's foundry and physically remove the Keisler owned Mopar big block bellhousing tooling that GF had them run parts for him. I recorded the conversation with this unscrupulous vendor and was just shocked to see how low some people will go. Indeed, KE's pockets were ripe to be picked by our competitors.

[autodynamics]

In 2010, KE was blindsided by TREMEC Corp (a Mexico corporation with offices in Detroit area) when they suddenly terminated our Elite Distributorship Jan 17 2010 with no warning and no cure period. We less than six (6) weeks to purchase product to fill remaining orders only, could not purchase any additional inventory, and the termination was non-negotiable. In fact, this was illegal practice in Tennessee law, but in Michigan law where my Distributorship Agreement was in place, it was acceptable practice. This action was taken by Lee Davis, the Director of US Sales operations at the time. In a recorded phone call between Lee Davis and my business manager Bruce Skolfield, Davis disclosed that he was fulfilling his intentions to terminate KE - his largest distributor in the Aftermarket and one that sold more than Ford Motorsports - because of his dislike of me and that my former sales people-turned-competitors would eventually fill the loss of KE to the market. The Mexican top management in Mexico City did not really care about the Aftermarket branch because the volume was small compared to the OEM volume and they let Lee Davis and his people do whatever they wanted with the Aftermarket as long as the OEM was taken care of. Years earlier, Lee Davis, over dinner at SEMA Las Vegas in 2005 November in the presence of four others including the current Manager for Tremec Aftermarket Sales, said very clearly that he was "going to knocks the legs out from under Keisler Engineering if KE did not do business his way." This was a total shock, and for the ensuing hour I was lambasted over multiple issues ranging from Davis not liking the Keisler 5-speed name being better known than Tremec name in the classic car aftermarket. Other unfounded grievances were the Tremec logo I used on every web page representing his product should have been bigger, or higher up on the page, that he didn't like the dark background color of the my web-site. It was at that dinner that I decided to pursue the diversification of KE and to not have all of my eggs in one basket. In the May of 2006, I purchased General Motor's MUNCIE Transmission manufacturing line at a cost of 3.89 Million Dollars ($3,890,000.00) under a new company - American Gear & Transmission - and moved these assets to Tennessee to start-up a new company This move to start a new American transmission company in the wake of GM Muncie's closure sealed KE's fate of Davis' threats. When the termination of KE's Elite Distributorship when down March 1 2010, within a few days the manager of Tremec Aftermarket Sales issued a letter to all 150+ distributors of Tremec mandating them not to sell to KE at any price - even full retail - or their distributorship would be TERMINATED. A second letter was sent out to the same effect and I have both of these letters. I sought legal advise about this, and learned what Tremec Aftermarket Sales was doing appeared to be "Boycotting" which is a Federal Trade law violation carrying very stiff penalties and triple damages to the offended party. But I would have to file suit in Federal Court in Michigan and the case would be expensive and lengthy because of the way Federal lawsuits are processed. At that point in time, I decided to focus on survival of KE and not pursue the lawsuit at that time. Within a couple months, I led formation of Legend Gear & Transmission with the owners of Abundant Mfg. and brought them the transmission design and marketing which is now known as the LGT700 and the Legend Gear & Transmission company. KE found a work-around for the Tremec's boycotting, and product continued to flow from several several distributors that were wise to Federal trade laws. Even though Tremec implemented a "secret shopper" scheme in 2010/2011 in efforts to stop this American Entrepreur's small business, I continued to press on. I kept all of this under my hat, all the while my competitors were bragging to our customers that Tremec did this. I have tried to take "the high road" through the years and always do what is right for the customer, the employees vendors ahead of my personal needs. Accordingly, in the months before closure of KE, I had not drawn a salary or income from the company. My wife and I downsized in a major way, putting the home and farm we built for sale and moving to a small rental home.

The process of building KE from a garage operations in 1991 to a company that has sold more than $65 Million Dollars of product to over 16,000 customers has not been an easy one, but it has been a rewarding one. It is my hope and expectation that buyers for the remaining assets of KE will purchase these and put the assets back to work in new companies. In fact, I sold the Keisler PerfectFit kit & manufacturing assets for Tremec TKO & T56 to Liberty Gears - a Tremec Elite Distributor in Taylor Michigan. Liberty Gears - a family run business - has been around since the 1960s and has tremendous capabilities that complement what KE was doing for the market. By adding the highly engineered Keisler TKO and T56 kits to Liberty's existing capabilities for internal upgrades, the resulting product line further places Liberty in a class of their own. I plan to support Liberty Gears in their pursuits to offer the very best Tremec TKO & T56 kits to the market. In my efforts going forward, I intend to work with the Trustee of Keisler Engineering for the benefit of every creditor of Keisler Engineering - both its customers and vendors - that had open balances. This process will take time and patience on everyone's behalf. I ask for your support and patience while the Trustee and I work thru the Chapter 7 process. I understand the frustration that those of you with standing orders or supplier accounts with KE will have, and I am sorry that you must endure this. But please work with us and brighter days will be ahead.

Sincerely,

Shafi Keisler, Founder, President & CEO thru Jan 15 2014
Keisler Engineering, Inc.

[Ghoste]

I don't know, it sounds like he has a gift for pissing off a lot of other people while making it sound like its all their fault. 

[bill440rt]

I've been procrastinating on purchasing one of their electronic auto trans controllers. It allows you to fine tune the trans without resorting to hooking up a laptop. Kept telling myself "someday"...
Does anyone know if you can still buy parts or accessories from them?? 

[JB400]

Unfortunately, it's only half the story.  I doubt that we'll ever get the other half.  Either way, I would still like to get one.  I'll just have to go elsewhere.

[autodynamics]

I've been procrastinating on purchasing one of their electronic auto trans controllers. It allows you to fine tune the trans without resorting to hooking up a laptop. Kept telling myself "someday"...
Does anyone know if you can still buy parts or accessories from them?? 

Bill
The controller is from Pcs
Keisler just put there name on it

[TUFCAT]

I really don't give a shit to read about his troubles... I only wish people would learn how to write in smaller paragraphs to help the reader!

Without paragraphs this is a very long and painful read.....so paragraphs could actually help a lot.  Remember this folks!  

[Mytur Binsdirti]

I guess it's safe to say that they won't be down for.................................

[TUFCAT]

...on a side note, how could someone seemingly get f*cked in business that bad?  Really?  

This story reminds me of a type of guy who does everything wrong, but blames everybody else.  Could he really be such a bad businessman?? ...or likely (as someone else alluded to, there's more to this story).  His painful story doesn't add up for me, and its very similar to lots of stories I've heard. Some folks are desperate and willing to take any measure to succeed - and usually fail doing so.  On the other hand, I am truly sorry for him because he had the talent and courage to create a great product.

[JB400]

Sounds like you're describing the Celebrity in Chief  

                                                        JB
                                                     

[Ghoste]

Thats what I'm sensing too.  We definitely aren't getting the whole story but he sure seems lik a victim with a long list who were out to get him.  If everyone you know is an idiot or an asshole, it might be you.

[autodynamics]

It's obvious he made some bad decisions as he states
Buying Muncie did him in
Either way you slice it, shafi revolutionized the industry with his overdrive kits

No Mather what happened he did do that and helped the mopar community which at times are a bunch if wet pussies
A lot

[Mike DC]

                 
It's surprising that he was doing so well for like 20 years and now it comes apart.

"If everyone you know is an idiot or an asshole, it might be you."

Great quote.  And probably relevant to this story.

[Mytur Binsdirti]

               
It's surprising that he was doing so well for like 20 years and now it comes apart.

There obvoisly is more to the story, but I'm sure that it's still tough to have one's business just crumble away.

[bill440rt]

I've been procrastinating on purchasing one of their electronic auto trans controllers. It allows you to fine tune the trans without resorting to hooking up a laptop. Kept telling myself "someday"...
Does anyone know if you can still buy parts or accessories from them?? 

Bill
The controller is from Pcs
Keisler just put there name on it

Pete, is this the link here?
http://www.powertraincontrolsolutions.com/product/SimpleShift/

Good to know. 

[Ghoste]

               
It's surprising that he was doing so well for like 20 years and now it comes apart.

There obvoisly is more to the story, but I'm sure that it's still tough to have one's business just crumble away.

Oh without question.  Its a part of you.

[thor7160]

bulls$#@..they stole from customers like myself who paid for parts and didn't get them...I called last Tuesday to see when they were sending my drive shaft and they never called me back. I had been calling and emailing for a week until I saw this bankruptcy filing tyesterday. Just another company ripping off good honest people and hiding behind bankruptcy laws ...i feel for the customers who spent $1000's on trans and never received them...Shafi or whatever his name is should be in jail..funny how hes crying about the competition badmouthing and spreading (what turns out to be the truth), rumors of his company closing. I hope he loses his house to. He could have taken care of his customers instead of lying to us. Promising what he couldn't deliver.

he's a rat for what he did to us ..he didn't  even have the decency to call customers and tell the truth he just let us keep calling and writing and wondering for a week..then he hides behind his computer and deletes all the negative comments on his FB page ..im not done with him .Im going on every site that reports or comments about Keisler and post what he did to me...I may have lost money but he lost his dignity.All the good he might have ever done for customers is now washed away...Now every time he goes to a car show or see's  a mechanic he deals with, he'll be thinking that they know how he screwed his customers..that my friend is worth the lost money he stole from me.

You reap what you sow my friend.....

[autodynamics]

bulls$#@..they stole from customers like myself who paid for parts and didn't get them...I called last Tuesday to see when they were sending my drive shaft and they never called me back. I had been calling and emailing for a week until I saw this bankruptcy filing tyesterday. Just another company ripping off good honest people and hiding behind bankruptcy laws ...i feel for the customers who spent $1000's on trans and never received them...Shafi or whatever his name is should be in jail..funny how hes crying about the competition badmouthing and spreading (what turns out to be the truth), rumors of his company closing. I hope he loses his house to. He could have taken care of his customers instead of lying to us. Promising what he couldn't deliver.

he's a rat for what he did to us ..he didn't  even have the decency to call customers and tell the truth he just let us keep calling and writing and wondering for a week..then he hides behind his computer and deletes all the negative comments on his FB page ..im not done with him .Im going on every site that reports or comments about Keisler and post what he did to me...I may have lost money but he lost his dignity.All the good he might have ever done for customers is now washed away...Now every time he goes to a car show or see's  a mechanic he deals with, he'll be thinking that they know how he screwed his customers..that my friend is worth the lost money he stole from me.

You reap what you sow my friend.....

I think when your in it that deep your try and hold together, in these chapter 7 chapter 11 cases they are always issues, hence what led up to the bankruptcy ,
What truly amazes me are how many people are bitching,(for obvious reasons )
But don't realize that's Keisler really was instrumental in bringin modern transmissions into old cars
Also all he companies that followed him all try to copy his designs,he made some bad moves and the economy sent him in a tail spin and could not recover. Now many people were on the list and were owed something, now it's up to us to just deal with it, I know it sux but really what can be done, other than call slander them all over the boards.my question is if not Keisler thn who???
WHO has a complete kit bell housing crossmember clutches etc
And tell me this WHO HAS A AUTOMATIC OD perfect fit ?

Answer nobody

So like I've said it's a sad day Keisler is going to leave a void in the market period.
Sad for those who got caught up
Sad for all parties

[Ghoste]

Passon has a 5 speed now that doesn't need all the other special crap.  I think you'll see more of his competitors step into the void now.  He did it first but it wasn't an exclusive.