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Old 01-21-2015, 06:46 AM   #1
lamotovita OP
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Future of Gas Gas

I was searching for information about the new Ossa models and found this.

"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 their 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. Like the demise of Bultaco and Ossa .out of the ashes new companies will rise ."

That's all I know about it.
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Old 01-21-2015, 07:09 AM   #2
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I saw this from a friend this morning and it took me by surprise. I had thought GasGas to be one of the more stable marques. They were picking up other's failed pieces.

The survival of any small manufacturer in the recreation market these days is always risky. They reflect the general state of the economy. When people do well and feel secure, they spend on recreation. When not....

Let us hope it is a hiccup for them. I hope they are able to reorganize their debt or find a risk-tolerant buyer and continue and survive. If not, they won't be the only smaller-company domino falling. It's the small guys who are paying the most attention to trials and doing the majority of innovating.

Debt is a runaway train with whole societies unable to apply the brakes. Standing on the throttle, standing on the brakes, as the Dire Straits song goes. At some point either the engine will blow or the brakes will fade.... It's going to get very interesting
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Old 01-21-2015, 08:11 AM   #3
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Their financial troubles have been going on for years.
http://trialscentral.com/news-archiv...s-in-the-money

The Gas Gas founder talks about how he thinks the company won't survive in this long interview.
http://www.retrotrials.com/-exclusiv...-pibernat.html

From page 27 of interview:

Why did you leave GasGas?

I go because others entered the company and made it go another direction and they no understand nothing, they no have the ideas and I no have to make a lot of compromise and they lose the money. The director not understand the motorbikes, not understand the business, no have nothing clear. There was a lot of risk for me and after 3 months I get out. The result is this. GasGas company is much less business now than before . Big problems. 30% of the problem was for me , so I leave.
I take out by percentage and I save the loss we were leading to. Later I get more money out also and I have no problems. GasGas is not possible. GasGas not have a future. The idea of the company and the direction is very poor. They don't have idea. They are like Ossa.
Was it a good time for you to leave GasGas?

For me it was just material. It was like the Lancia. If I crash I buy another new. I have Hebo, I sell Hebo. After tomorrow I no remember. The old things are not important to me. The things of my family, this is different but one thing material like this is not important. When the people no have idea and no go its straight line it is better to get out, it is better out. With partners in any company you must have good ideas you know, but this no happen.

So, when you left GasGas you had a 33% share.

Yes, 33% including 7 with my wife Anna. We leave, they pay us the money and we taken out and leave complete.
I think now Gasgas is 90% government owned
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Old 01-21-2015, 02:27 PM   #4
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Here is what Jim Snell posted today:

When I have official news about the changes at GasGas, and when I am authorized to do so, I will make a statement. - Until we know all of the facts, please be so kind as to not speculate. I suspect that in a few days, some of these internet speculators will likely be embarrassed by their statements being made today.
For now, I would like to say simply this: "Don't believe everything you read in the press and on the internet"
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Old 01-21-2015, 02:51 PM   #5
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No Lineaway response yet? WTF

Slow clap for Gas Gas







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Old 01-21-2015, 03:56 PM   #6
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I have to be an optimist since I have lots invested in this brand . $ $ $ $ + one on the way ! My wife (sponser ) would be quite upset if they were in trouble for sure , but Sherco or Beta would be very happy . No matter what as long as I keep myself surrounded with fine Euro Bikes
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Old 01-21-2015, 04:15 PM   #7
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Yeesh! Not good news. While I am a dyed-in-the-wool Montesa fanatic, I don't want to see GasGas go under either. Here's hoping for a good outcome.
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Old 01-21-2015, 04:20 PM   #8
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from the lweisport website:

EWS--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.
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Old 01-21-2015, 04:39 PM   #9
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I better dump my GG now, before it's too late. Anyone know of a used Merlin or Mecatechno for sale?
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Old 01-21-2015, 05:14 PM   #10
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G. G. has been in trouble since they expanded. Thousands of companies have gone down this road to business HELL. One decade profitable, next year in the red. That explains the new models (Hell) coming out. Real shame if it happens. Never was much a GASSER rider myself, but they helped the sport by leaps and bounds!!!
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Old 01-21-2015, 07:23 PM   #11
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Quote:
Originally Posted by lineaway View Post
Never was much a GASSER rider myself, but they helped the sport by leaps and bounds!!!

But Bob, every time you rode a Gas Gas (including a 1994) you won.
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Old 01-21-2015, 07:25 PM   #12
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Bars, wheels, brakes. There all the same?
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Old 01-22-2015, 05:24 AM   #13
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20 million euro is about 23 million dollars. The euro is under tremendous pressure and Spain's exonomy is in the toilet.

Bikes sell for about $8,000 and let's say the factory keeps about 10%. After paying the debt load, they get to keep about $300. This is gross, not net.
Now figure in massive sales of a few thousand a year and this should iron itself out in no time.

I guess when they started assembling bikes out of the left over parts inventory and seling them as "econos" that should have been a sign to get the ol Bultaco going again.
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Old 01-22-2015, 07:07 AM   #14
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Wow that's a long interview with great history!

You can clearly see toward the end division and disillusionment growing among management. A surprise, however, was this idea of no vision, no plan. That doesn't make sense in light of the great trials bikes and Enduro bikes they have been producing for years. What makes more sense is the 2009 crash and lots of cheap money being pumped in to heat things up, a mistake being repeated in many societies, and normal disagreements in vision.

At least the fellow got out, selling his stock. I was in a similar situation, being pushed out after 18 years by a new CEO who has so far been crashing a former great thing. I should have taken my money out recently when they were doing a buy back. The price was crap, insulting in view of 18 years of my work making the company lots of money. But I think I made a mistake. Something would have been better than nothing

Great companies with united management are the exception, rather than the rule. Divisions and grid lock are normal, and without the energy put into the system by adequately great leadership, entropy eventually wins out.

Jim Snell was right about not speculating (too much). We'll see how this plays out. If the government does own most of them now, maybe like in the US they will be too (fill in the blank) to fail, and GasGas will run along for a while or even prosper.
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Old 01-22-2015, 07:31 AM   #15
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Latest News from GG:
This is not a secret that Gas Gas has been facing many challenges during the last years. The company has substantial financial debts from previous years, that affected our day to day operations in all aspects, starting with our ability to produce and deliver bikes and spare parts to our loyal customers, through Marketing and R&D. The whole of Gas Gas eco system (suppliers, importers, and dealers) had to face many difficulties due to that situation, and have shown a lot of patience and support. None of this would have worked without the huge support, devotion, and commitment of our employees.

The company, together with its shareholders and some advisors, recommended by the bank, has been working on a debt-restructuring plan for the last few months, which includes new investment by the shareholders to support the company growth.

To date, the banks have delayed their answer and forced us to start some legal actions in order to protect the company and push the process forward.

Last Friday, January 17th, 2015, a legal action was placed in court in order to speed up the process.

As part of this process, we had to stop the production during the past days, so there will probably be delays in the deliveries of new bikes and spare parts in the next coming days.

Im confident that without having a long lasting solution, we will continue to fail in fulfilling our business plan, resulting by not providing you the kind of service we aim for.

This week the process starts moving faster. The company, with its shareholders, are doing their best to close this restructuring agreement as soon as possible in order to immediately resume our production activities.

Gas Gas will promptly report with updates, the moment further developments arise.



Yariv Gilat,

Chairman
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