GSG-5 Problems - The Fiasco Continues

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Late last week, American Tactical Imports (ATI) received their third shipment of GSG-5 rifles from Germany. It was a long journey plagued with delays, but they're finally here. That's the good news.

The bad news is that Tony Dichario, president of ATI and Amchar Wholesale, has made a very hasty, last minute decision not to fulfill GSG-5 orders that he promised dealers-- orders that distributors, dealers, and end-users have patiently waited weeks and months for. Instead, Amchar is abandoning the distribution channel-- refusing to sell to Lipsey's, Sports South, Ellett Bros, and other distributors. In addition, ATI is requiring dealers to purchase an additional firearm with every GSG-5 they order. That means dealers need to purchase a Springfield XD, Kel-tec P-11, Bushmaster M4, etc. just for the "privilege" of acquiring a GSG-5. This 1:1 plan isn't "crazy" since ATI/Amchar is the exclusive importer of the GSG-5-- but it IS very stupid. And it has already angered a good many of us!

The policy wouldn't be such a bad idea if Amchar Wholesale actually stocked a broad-line of products like RSR, Lipsey's, Sports South, Ellett Bros, and other distributors. However, a third tier, backwoods distributor like Amchar doesn't afford dealers the same kind of luxury we've come to expect from others in the distribution channel. Luxuries like reliable service and predictable and ethical business practices. It would be fine if dealers could source hot-selling brands like S&W, HK, Glock, and Springfield Armory from Amchar. Unfortunately, they only sell S&W to law enforcement end-users and they never have enough Glock, HK, or Springfield Armory products in stock. To make matters worse-- Amchar's pricing isn't even inline with other distributors. So, to add insult to injury, it costs dealers more to purchase firearms from them!

According to an inside source at Amchar, the problem is with their cash flow. Amchar/ATI resources are stretched paper thin and they can't come up with the necessary capital to purchase the next shipment of GSG-5, which is already ready to ship from Germany! They're cash poor and desperate. Their solution: force dealers to buy an additional firearm with each GSG-5 they order. Problem solved? Hardly.

To say the fledgling GSG-5 has experienced growing pains is an understatement. ATI/Amchar's failure to execute timely distribution to dealers clearily demonstrates the staggering ineptitude of both firms and their boss, Tony Dichario. However, distribution problems by themselves are not enough to kill the GSG-5. Quality control issues are problematic for the brand and threaten its future. Several of our clients have already documented poor fit and finish, loose screws, cracked buttstocks, missing parts, cracked bolts, broken receivers, firing pin issues, stripped screws-- and an inability to get any service from ATI or Amchar Wholesale. These problems, coupled with the fact that the manufacturer in Germany (German Sport Guns) has a background primarily in airsoft guns, don't inspire confidence. ATI/Amchar/GSG need a quality product delivered in a timely fashion at an attractive price point-- period. Presently, they're failing to deliver on all counts.

gsg5_cracked_bolt.jpg
Cracked Bolt on GSG-5

gsg5_stripped_bolts.jpg
Stripped Screw Holes

The hysteria surrounding the GSG-5 is well documented. GSG-5s were selling upwards of $600 on Gunbroker during its highly-anticipated launch. Now, there are no bids on those auctions and dealer profit is suffering on these $405 rifles. If a dealer can only make $100 on one of these (and that's a big IF at this juncture)-- why would he buy another gun at a higher cost from a distributor that he cannot trust in the first place?

We're at a crossroads with the GSG-5, my friends. Demand increases, but a move by Amchar/ATI has created a bottleneck in the supply chain. Customers who have been waiting for weeks and months are frustrated to the point of cancelling orders and swearing off the GSG-5 altogether. The GSG-5 is a novelty item. It's a fun little plinker, but not much more than that. It should be cheap and easily produced in mass quantities. We've seen this time and time again in the firearms industry: a firm comes out with a hot new product-- a product that won't be available for months and months. People lose interest and spend their money elsewhere. In this economy, I can't blame them.

Just wanted to let you guys know what's going on. We're done doing business with ATI/Amchar. A lot of other dealers feel the same way. Take care and as always-- stay On Point and God Bless.
-- Evan
 
I want one but $500 is steep enough without extra price gouging (which is huge in your case). There is one on GB right now bid up to $655 with an hour left.
Guess I'll wait and see what happens. I want one but not THAT bad.
 
Hmmm. I seem to remember something in the Antitrust laws about tieing and restraint of trade.

Back in the 70's when I worked for B.E. Hodgdon Inc., we were an S&W distributor. That was back when we couldn't get our hands on enought S&W pistols and M29's were selling for as much as $200-$300 dollars over list! S&W started bring out a bunch of cheap leather, long guns, and ammo and the reps would tie the number of handguns that were allocated to you depending on how much of their other crap you bought. :fire: It was illegal as hell, but they got away with it because most of the disti's did the same thing. If all a guy wanted from me was S&W pistols and bought all his other stuff from another disti., he would NEVER see S&W out of me. As illegal as it was, S&W and certainly none of the distis had deep enough pockets to interest an antitrust lawyer.
 
That is a pretty shady business practice by ATI. Can anyone explain to this business inept person how ATI doesn't have enough cash flow to buy another shipment of GSG-5s? If they're selling every single one of them as fast as they can get it shipped, where are their expenditures going?

I like my GSG-5 and I've got about 1600 rounds down the pipe, but those pics are disappointing. It's certainly no way to start off a reputation.
 
It is interesting to note that the GSG-5 is made by the same manufacturer that produced the SIG Mosquito. I hope that these issues can all be resolved soon.
 
Thanks for posting this. I've had several people that wanted to order one but they are always out of stock and no one at the major distributors knew when they would be coming in. At least now I can tell them something.
 
im glad i got mine when i did, but i fear for the future of aftermarket parts. if these guns start failing left and right, who is to say we will get a repair or replacement anytime soon, or if at all? im hoping another in-country manufacturer picks up this ball and runs with it so this situation can go away. lets all write to SIG and beg them until they say 'yes'.
 
That's a shame. I hope they are able to work out the importation issues so more rifles can make their way into the US. Maybe through another distributer.

I was lucky enough to get my GSG-5 in the first shipment and have had it since January. When I first got it my friends and I put it through a kind of torture test and did not have a single failure or malfunction in the first ~ 4k rounds. It wasn't until after I cleaned it the first time that I had a malfunction - 3 total. Since then I have put over 10k through it and have not had a single malfunction - nada zilch, none. I also have a Ruger 10/22 T and have experienced far more malfunctions in fewer rounds. So to me reliability is not an issue with the GSG.

I give anyone who wants to shoot it an opportunity to send a couple of mags or more downrange. It is a great rifle and I would gladly purchase another rifle from GSG is they came out with something I liked.

Don't believe everything you read.
 
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It is interesting to note that the GSG-5 is made by the same manufacturer that produced the SIG Mosquito. I hope that these issues can all be resolved soon.

I had no idea! Great intel. Thanks.
 
Doesn't sound too good

I'm glad I didn't buy one. This company has cash flow problems so their answer is to screw the customer? Sound like a self-fulfilling prophecy to me. :eek:

I would count on them being around too much longer. It's sad. I hate to see any honest, law abiding company go out of business. The key word of course is "honest". Looks like this company has some problems with that. :scrutiny:

Like a previous poster said "All this for a .22?" I think .22s are plentiful and a dime a dozen for the most part. Why would anyone even bother with this obvously dishonest company? :barf:

Molon Labe,
Joe
:(
 
How sad:(

I had my heart set on the GSG-5 and was hearing so many good things about them up until now. I guess I'll put this gun on the back burner for a while and see how it pans out.

It is interesting to note that the GSG-5 is made by the same manufacturer that produced the SIG Mosquito. I hope that these issues can all be resolved soon.
If this is true then my hopes are even more crushed, I had a Mosquito for a short time, it did not live up to my expectations.
 
This thread is really bumming me out. I wanted a GSG-5. Now that wish has been dashed against the rocks by the spectre of poor quality. I also wanted a Mosquito. Now I'm hearing that it isn't the object of my desire I once thought it was.

And now through some of my own research, I learn that the P22, which I recently bought, is also from the same manufacturer. I really like it so far, but now that little tidbit is going to be in the back of my mind, mildly irritating me like fiberglass insulation on my forearm.

Damn it.


-T.
 
I saw a GSG-5 at a gun show last weekend; the price was $549, NIB. It's the first one I've seen since they were introduced to the U.S. market. I was tempted, but I wanted to hear how they were holding up before I put down that much cash for a .22 fun gun. Glad I held off; we'll have to see how this importer business plays out.

Cougfan2

I remember a dealer back in the '70's telling me pretty much the same thing; if he wanted a "hot item" like a Model 29 or Model 60, then he had to take so many Model 10's and other S&W products to get them.
 
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