Will Gas Gas go Bye Bye?

[slowmoto]

I just read this on retrotrials.com Facebook page:

 

Unfortunately I am sad to inform you of what appears in many Spanish news papers . With 26,000,000 E of debt GasGas motos of Spain have had thier credit line stopped and have finally been told that they have six months to find a buyer. In the meantime they have to purchase all spares and pay for workers using cash only frown emoticon. Like the demise of Bultaco and Ossa ....out of the ashes new companies will rise .

http://www.eleconomista.es/…/Economia-Motor-Gas-Gas-present…

http://www.diaridegirona.cat/…/fabricant-gas-ga…/706586.html

http://m.europapress.es/…/noticia-gas-gas-presenta-preconcu…

 

[Odysseus]

I can't say I'm surprised. GG has been doing a pretty good job of undoing itself for some time now.The chickens have come home to roost or so it seems.

Edited January 21, 2015 by widebear

[Home Skillet]

It's just a chess game to gain a tax advantage.

Very common.

[CDBiker220]

Response from the US GasGas Promoter:

 

"Don't panic, GG is not going anywhere! 

This is purely a political move and poker game being put on currently. I have been aware of this plan, and current strategy of restructure since early December. Its a business move done many times over by many companies through the world in order to get a better financial footing for future projects. GasGas with the help of some government assistance is working the banks that had possession of GasGas a few years ago. In its current state GasGas is sustaining and doing well, but the interest and contracts that were done with the banks back in Spains recession period have not allowed for growth.

As I said, this is a planned move to restructure. Once there is an agreement made that GasGas has proposed to the banks. The investors have promised an additional 9 million euro's to put only into R & D, and future projects. The investors know what they are doing, and they are doing this for the benefit of a stronger future for GasGas.

On the US side, GasGas Motos NA, and GasGas USA (trials) are not going anywhere and we will still be here promoting, selling, and planning a strong GasGas future."

 

http://www.gasgasrider.org/forum/showthread.php?t=18953

[slowmoto]

Lewisportusa.com has this to say about the news:

NEWS--GAS GAS / OSSA

In a world of digital news --forums--rumours and speculation here is the ACTUAL facts on the latest developments within Gas Gas, hopefully put into plain english so that we can all understand ,

Last friday (1-16-15) Gas gas filed a "pre concurso" with the Spanish Court system. We are not lawyers, but we believe this is the informal equivalent here in the USA as Chapter 13 bankruptcy protection.

Gas Gas will be undergoing a re organization of various resources at the Factory and is involved in intense negotiations with their banks, creditors and suppliers in an effort to restructure the company debt, currently estimated at 20 million Euro's. This long term debt service has been a huge financial burden on factory resources and they are in a position now where they want to negotiate in good faith a solution to the problem.

The current investment group is keen to provide additional growth and working capital into Gas Gas when the current situation is solved.

Gas Gas and Ossa are great products and the company is committed to many more years of producing great bikes for us all to ride and race. We remain positive that they can successfully bring about a solution to the financial burden they are under.

NOTE:--- We see this as actually GOOD news from the factory, this will hopefully help resolve a huge burden the company had to deal with on a daily basis and allow the company to move forward enabling them to remain the worlds largest trials / enduro bike producers.

 

I don't see how this is good news. Why would anyone want to buy a new bike from a company that just filed for bankruptcy? This news would kill sales at least for the short term. The factory needs to issue a statement instead of these claims from dealers and importers trying to save sales.

[Odysseus]

This is the captain. There is no need for panic.The severe flooding is limited to below the waterline.

[SS109]

Not worried in the least. Widebear, I think you just want them to go under!

[Allen.Richardson]

Amazing how this has excited people...but mostly the ones with an axe to grind it seems. Quite honestly, the move is a pretty common practice in big business guys. I can name a few auto and motorcycle manufacturers from the last 20 years that done the same thing and have done quite nicely every since. IMO, a smart move by the investors to get the brand back on tract.

[Odysseus]

Not worried in the least. Widebear, I think you just want them to go under!

You must have some super cognitive powers going on there. You must  know something I don't because I just bought a brand new 300 top for mine . Decided to go that route because I couldn't sell it and sure as hell wasn't gonna give it away for nothing. Now that you know am I gonna get that invite to your gas gas themed pyjama party? And heres Ricky he's from Canada-----

Edited January 22, 2015 by widebear

[slowmoto]

Factory released statement today and it looks bad. They stopped production.

[ar2stroke]

Gas Gas makes high quality bikes, hope they can survive. Love the bikes tho, really nice!

[GP]

 

You must have some super cognitive powers going on there. You must  know something I don't because I just bought a brand new 300 top for mine . Decided to go that route because I couldn't sell it and sure as hell wasn't gonna give it away for nothing. Now that you know am I gonna get that invite to your gas gas themed pyjama party? And heres Ricky he's from Canada-----

 

Thats some funny shit Rick.

[SS109]

You must have some super cognitive powers going on there. You must  know something I don't because I just bought a brand new 300 top for mine . Decided to go that route because I couldn't sell it and sure as hell wasn't gonna give it away for nothing. Now that you know am I gonna get that invite to your gas gas themed pyjama party? And heres Ricky he's from Canada-----

 

Definitely some funny stuff! I was just poking at you! ?

[Odysseus]

Definitely some funny stuff! I was just poking at you! ?

  I know your ok with that, good on ya for having a laugh!

Edited January 22, 2015 by widebear

[Piney Woods]

GG, lesson in corporate futility.

[TrailerParkMethChef]

While not rare, this type of move is not common unless there is some serious financial crisis hanging over the company. 26,000,000 euros of debt and a halt of production isn't positive news at all.

Hopefully a buyer with better business sense than the current owners can resurrect the brand.

Oddly enough, with the local dealer finally admitting to the rumors and dumping GasGas and the issues at GasGas Pacific with parts and support, I decided to buy a Beta today.

I will be paying close attention to this for sure.

[kaos]

You may be in for an eye opening experiance grimlock. In 5 models of gasgas I have only once had to special order a part not stocked. But my beta needed to wait for parts from Italy for a basic top end freshen. I won't get into the cost differences, but beta definatly would not get on my short list again

[TrailerParkMethChef]

My first two years of GasGas ownership were great. I never once had issues with wait times for parts. Even most of last year was good aside from a long wait for a seat cover. From September last year on things have been downright ridiculous. Even with those issues, I was still looking to pick up a 2015 EC300.

The token excuses only go so far. Once this news dropped, the Beta became the bike of choice for me.

Hopefully they can turn this around. The 2015's are a serious move forward. I am still a GasGas guy after all!

[GJ Enduro]

I have a 99 gas gas so they might become rare a worth some big bucks in the near future if they go under.

[Odysseus]

You may be in for an eye opening experiance grimlock. In 5 models of gasgas I have only once had to special order a part not stocked. But my beta needed to wait for parts from Italy for a basic top end freshen. I won't get into the cost differences, but beta definatly would not get on my short list again

  Kaos. How many Beta sources in North America  did you exhaust before relegating your self to the thought that  those parts could only be got from Italy?  I agree that GG Pacific has great inventory but when it takes nine days or worse not at all for Dave to respond to emails and phone calls. This btw is a frustration shared not by just myself but a number of dealers and shops I have spoken to as well. I'm thinking that since the dealers with floor plans are going to be sending back their gg inventory as a result of this crisis the importer afore mentioned  should be damned thankful that the phone rings at all, and if he isn't  thats fine too because theres somebody somewhere in this internet connected world more than willing to fill his boots and that goes for most anything for sale under the sun beta  parts  included. In my view numerous choices is always a win win situation for consumers.The cream rises to the top. Its just to bad these principals cant be applied to politics.

Edited January 25, 2015 by widebear