Economics 101
HS Arms started business by importing the HS2000 from a Croatian military arms manufacturer which was subsidized with your tax dollars during the Clinton administration. Imagine the anti-gun Clinton administration subsidizing the making and importation of a 9mm pistol to stimulate the economy of Croatia? Politics and money always prevail over retoric.
The price, apparently due to the subsity, was down right cheap. The pistol however, was and is based on a long standing proven military design in service for many years but upgraded to use a polymer frame like a glock. It is basicaly a cross between a Glock and a Sig.
The HS2000 is actually a very good pistol with many features that Glock owners add to their pistols after they buy them. It is very reliable and very accurate. It was considered the sleeper of the decade by those fortunate to get hold of one and overcome the narrow mindedness and snobbery of some of the gun buying public. However, HS was unable to satifactorly keep up with demand and the narrow profit margin put them into trouble.
In the mean time, Springfield Armory noticed the pistol, the rave reviews and loyalty of its owners and approached the manufacturer about importing the gun themselves. They swung a deal to import the same exact gun.
It should be noted that many American gun makers have actually imported and sold foreign made guns under their own names.
Springfield Armory is an established company with a dealer network in place and the money to advertise and market the pistol. Those things cost money and was something HS Arms was unable to do. Obviously SA thought the HS was a good addition to thier lineup and a good enough pistol to use as their entry into the service pistol market. Yes the price went up but it is still a good pistol for the money.
It should be noted that SA is is doing warranty work on HS2000 pistols which is a nice touch.
Just so you know, I have nothing to do with SA, HS Arms, the former Clinton administration or Croatia. I just happen to have found the HS2000 and the new XD version to be excellent pistols.
I have 2 HS2000s and an XD40. The HSs are used for IDPA competition and I just bought the XD40 as a carry gun.