Future of Gasgas

[elemetal]

This is the response about all of this from Mark Berg; head of Tarrot North America off the GasGas riders forum.  Gives a little more depth to what's going on at least.

 

Hello Everyone,

I just wanted to let all of you know if you haven't heard already of an article released in Spain about the "closure" of the GasGas company. This story is filled with incorrect statements and half truths, it doesn't appear the USA is only country that likes fake news or news altered for an objective. There is a MAJOR restructuring going on in Spain that should have been accomplished well over 8 months ago, but with the politics between the two major shareholders, it hasn't gone quickly or smoothly. Black Toro Capital (60% investors) are looking for investors to purchase the Contreras shares in GasGas so they may split the two companies apart and during the intermediate future, they have had to do a temporary layoff. There are three investment candidates right now, and one has had 4 meetings already with a 5th meeting coming, so things are looking positive.

In Spain, if you want to restructure or eliminate/terminate employees it is NOT very easy at all. Each employee must be given a severance of 1 month plus for every year they have been employed with a company. When trying to reduce employee/overhead of at least 35 employee?s that are mostly from the Torrot side, but on the same payroll as GasGas, this is not an easy task, nor is it inexpensive. The other real option is to do a temporary layoff as they call it ?put to the fridge?. This way the government must step in and pay unemployment but it isn't anywhere close to the employee salaries, and the effect would hope to be that the employee goes looking for other work. You can now see why that story is so one sided and from the union leaders trying to make a social media outcry.

In the meantime, Black Toro Capital is continuing the needed restructure and to undo all of what the previous management had done. In the last three years, the old management went from 70 employees to 135 employees. Created a GasGas Sales office in Barcelona away from factory in Girona. Created a Torrot Sales office in Madrid. Created a Torrot Flagship store in Madrid. Hired a 3rd party warehouse for parts distribution in between Madrid and Barcelona. Started construction on a new factory for Torrot in Cadiz, Spain. Along with purchasing or acquiring SEVERAL other entities. All of these costly overheads that bring no return of investment are closing and all is going back to Girona. Thankfully! GasGas will become just GasGas again!

The aftermarket support team will still be operational the entire time, as are some of the other major support teams needed for everyday operation, which the story left out of course. Also, there is limited production still going on based on Torrot Muvi (scooter) orders and some limited production of 2020 trials in July. Product release is still set for the end of July, with our order period being in August.

There WILL BE an official press release from GasGas next week to combat this article release from the unions.

I have known of this "fridge" layoff for over 2 months (as I said, things work slow in Spain) and it is finally looking like it will take effect July 1st . This is much needed to slow down operating costs and lower staffed employees. We have been working hard here in the USA in order to do our part, and sadly some layoff's are coming here as well that none of us want. Many companies go through this including Arctic Cat, Harley Davidson and others.

We will continue to support all that have purchased a GasGas and love the brand here in North America. We have built a very good new business here in North America and are disappointed in the setbacks, but will survive and will grow again.

Thank you again for your continued support, and our door is always open!

[Andy]

Given that other marques of a similar or even smaller size survive just fine, it's pretty apparent this situation is down to gross mismanagement - again. The bigger issue, and one there may be no return from even if they sort the latest problems out, is consumer confidence. You can have the best product going, but if people are wary about the stability of the company, all but the most loyal will shop elsewhere.

[nhuskys]

Yup, an electric urban mobility company doesn't see a future in off road motorcycles the same way it did 3 plus years ago..... that's no surprise!

Mark's statements about restructuring are also conjecture, until real investors can be found to buy Torrot's share out.

A lot of the new factory and third party warehouse, is about the Catalan independence crisis and how the Spanish Government wants to move business out of that region, and into other parts of Spain. I'd guess the Spanish Government had some incentives for Torrot to do it.

[nigel dabster]

3 hours ago, Andy said:

Given that other marques of a similar or even smaller size survive just fine, it's pretty apparent this situation is down to gross mismanagement - again. The bigger issue, and one there may be no return from even if they sort the latest problems out, is consumer confidence. You can have the best product going, but if people are wary about the stability of the company, all but the most loyal will shop elsewhere.

I think you've nailed it with "mismanagement" .

[cascao]

Sales will drop dramatically untill Gasgas give a new good real healty sign. Again

During this time new and exiting products will be shown by competitors, shinking even more Gasgas market share.

Then they will say that sales are under what they expected?

What Gasgas need is a good marketing plan supporting the new return and a proactive communication people. Nobody can relly on unions information when your job depends on it.

[turbofurball]

Hmm

[dan williams]

Considering the number of GasGas faithful that are now TRS faithful here in New England it might just be too late. Dealers and customers aren’t really interested in investing their resources in a “maybe” survive company.

[johnnyboxer]

2 hours ago, dan williams said:

Considering the number of GasGas faithful that are now TRS faithful here in New England it might just be too late.

 

Dealers and customers aren’t really interested in investing their resources in a “maybe” survive company.

Nail on head, a lot of GG client base has moved to TRS, now...............so further dilution to GG sales, maybe proved inevitable

 

Shame, but the limited Trials sales market place has lots (maybe too many) brands to choose from

 

[overtone]

GG trouble is unwelcome news to this TXT rider, but it is not surprising.  The West is suffering from multi-decadal state capture by a sociopathic oligarchy, and is in decline - demographic, economic, political, cultural - so non-essential goods and services will suffer increasingly from shrinking discretionary spending.  GG is just blazing a trail for many others to follow.

Younger Millennials and Gen-Zers are not blogging about their avocado sandwiches from their parents' basements, and spiking suicide rates, because they're too hip and eco-conscious to blog about their new car or bike, or to move out and start a family.  The youth culture of the West has come to reflect their hopeless economic reality.

[johnnyboxer]

17 hours ago, overtone said:

GG trouble is unwelcome news to this TXT rider, but it is not surprising.  The West is suffering from multi-decadal state capture by a sociopathic oligarchy, and is in decline - demographic, economic, political, cultural - so non-essential goods and services will suffer increasingly from shrinking discretionary spending.  GG is just blazing a trail for many others to follow.

Younger Millennials and Gen-Zers are not blogging about their avocado sandwiches from their parents' basements, and spiking suicide rates, because they're too hip and eco-conscious to blog about their new car or bike, or to move out and start a family.  The youth culture of the West has come to reflect their hopeless economic reality.

Profound...................

[b40rt]

18 hours ago, overtone said:

GG trouble is unwelcome news to this TXT rider, but it is not surprising.  The West is suffering from multi-decadal state capture by a sociopathic oligarchy, and is in decline - demographic, economic, political, cultural - so non-essential goods and services will suffer increasingly from shrinking discretionary spending.  GG is just blazing a trail for many others to follow.

Younger Millennials and Gen-Zers are not blogging about their avocado sandwiches from their parents' basements, and spiking suicide rates, because they're too hip and eco-conscious to blog about their new car or bike, or to move out and start a family.  The youth culture of the West has come to reflect their hopeless economic reality.

Zensational comment

[jimmyl]

22 hours ago, overtone said:

GG trouble is unwelcome news to this TXT rider, but it is not surprising.  The West is suffering from multi-decadal state capture by a sociopathic oligarchy, and is in decline - demographic, economic, political, cultural - so non-essential goods and services will suffer increasingly from shrinking discretionary spending.  GG is just blazing a trail for many others to follow.

Younger Millennials and Gen-Zers are not blogging about their avocado sandwiches from their parents' basements, and spiking suicide rates, because they're too hip and eco-conscious to blog about their new car or bike, or to move out and start a family.  The youth culture of the West has come to reflect their hopeless economic reality.

Looks like English

Spelling is like English

But dam sure don't make no sense to me 

Or maybe it just means the kids cant be bothered to spend what cash they have on motorbikes anymore

[Andy]

On 6/14/2019 at 12:33 PM, hgas said:

Marc colomer has also gone as gas gas team manager ,not confirmed if he’s left or been dropped

I see he's joined Electric Motion.

[Canario]

On 6/24/2019 at 7:05 AM, dan williams said:

Considering the number of GasGas faithful that are now TRS faithful here in New England it might just be too late. [...]

That is exactly what I have observed in Europe and especially in Germany.

It is unclear to me how GasGas intends to win back ground in the short to medium term against a highly professionally positioned and price-wise highly attractive brand like TRS.

[breagh]

Said this loads Trials is like a secret society, how does any unknowing member of the public discover trials other than by accident .

Only the clubs and a few well meaning dealers push the boat a bit, as for the makers nothing.

It's a wonder any bikes get sold.