GasGas, New Investors
 

http://www.enduromagazine.com/ktm-y-...ZW58nUn0w2tulo

From Google translate.

KTM and Black Toro Capital create a ?joint venture? to reactivate Gas Gas

The KTM group and Black Toro Capital (BTC) have agreed to create a ?joint venture? for the global launch of the Gas Gas brand, which will allow the production of the Salt (Girona) plant to be expanded. As reported by the investment fund in a statement, the Salt factory will continue, additionally, serving the production of the Torrot electric vehicle. Specifically, KTM has a 60% stake in the new company, while the remaining 40% corresponds to Black Toro, sources close to the fund have reported.
This alliance aims to launch Gas Gas internationally with the development of new models. The collaboration will involve the expansion of the brand catalog under the commercial and technological umbrella of KTM. KTM will also take advantage of the knowledge of the BTC, Gas Gas, Torrot and Muving firms in the electric urban mobility segment.
?It is a great step forward in our Gas Gas consolidation project as a world leader in trial. It allows us to develop a new phase of growth for GasGas, incorporating new motorcycle models with cutting-edge technology and everything, with the best possible partner. The ?joint venture? guarantees a bright future for our brand and for the Girona plant, ?said Ram?n Betolaza, managing partner of BTC.
Source: El Peri?cico

Well, its official. KTM has invested into GasGas with Black Toro Capital to separate it from the Contreras management and to get production back running again 100%. There were a couple of offers on the table and while it took a bit longer than expected to finalize the agreement, it has now been announced as a completed deal. This is a COOPERATION between Black Toro and KTM, not an acquisition. What does this mean for GasGas?

#1. GasGas production will remain in Girona with a Spanish style and trials feel to all they produce
#2. GasGas will continue as a separate entity in most regions of the world
#3. GasGas and KTM will share some designs and model development moving forward (more model lines for GasGas).
#4. GasGas parts supply will be improved in time

What does this mean for the USA?

#1. It is still business as usual
#2. All operations will continue as is with units estimated at arrival in December

As I know more, I will continue to inform everyone when I can but to me this is good news for GasGas to move forward and get back to our growth we were experiencing in 2018 and the first half of 2019.

I really hope those slimy Austrians do not weasel their way into the company and turn GasGas into another clone but this time in red.
It will be the greatest shame if they revert back to Wp suspension and a poxy TPI upgrade...

I hope for the best, but personally think we are going to end up with another KTM. What happened to Husaberg, Husqvarna? KTM just bout in to the trials market.

I'm having a hard time seeing a positive result for the GASGAS faithful in this. Time will tell

Beats the alternative, no more GasGas'.

I'm very sad right now. :( While I'll continue to enjoy my '11 GG, I will be seriously considering Beta and Sherco for my next bike. I don't want a red KTM. Besides, I don't see the enduro line living for much longer. They have a 60% stake so that means they're calling the shots. They already have KTM and Husqvarna so they don't need GG for anything other than trials bikes.

Being one of this above mentioned slimey Austrians I hate to say it, but KTM management are unbelieveable slimey bastards. Not sayin' anything negative about their bikes, just the people behind the brand.

Biggest bike dealer in Austria is a close friend so I have some insight and believe me, these people are f***ing bastards. Remember what happened to Husaberg and Husqvarna. Not a bright future for GasGas...:mad:

Mark, thanks for the update. There are many of us who are thankful for your support over the years as well as the support of the team we do not see. For us, this is about dirt bikes. For you it is about a livelihood...and dirt bikes. You have families, health insurance etc etc. I hope and pray you will all be take care of.

Matt

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Well said!

I hope they make a cool electric enduro dirt bike with a 70 mile range.

First company to do that gets my cash. Would be nice if it's GG, but others are ahead in the development race.

I think that is the unicorn lots of us are waiting for. Can't see it being branded as a 'GasGas'.

No I think Gas Gas enduro is ded. And for a short time they will use GasGas and KTM brand on trail bike. Then after some years they will take away GasGas brand and become KTM trial bikes. I now how it works I have been working at Compaq. It cost a lot to keep up a brand name.

I meant no offence to you or fellow Austrians. I just have a severe distaste for Ktm and their business tactics. I know the guy who basically put Ktm in Australia back when they were no one and they basically slit his throat when it was not in there best interest.
I can not see nice things happening with this. But I am sceptical. Maybe I can be surprised...

KTM is starting to remind me of the Borg.

I too think this will be the end of GasGas as a unique bike. Red KTM likely will be the future. :(

Would have been better if Brp had formed a partnership with them, still miss my 1974 t'nt 175.

Speculation
 

Nobody has probably ran more scenarios in their head more than me in the last month when i was told KTM was now one of the possible investor choices.

I believe Mr Pierer looks to the Chevrolet Group formula as his business model, meaning multiple lines for more coverage and options for the consumer. If a certain line doesn't gain enough traction, then he shuts it down (aka Husaberg).

GasGas has a REAL potential now to gain traction, it has a passionate following and a stronger name than Husaberg.

Lets face it, the decisions made by 2 different managers of GasGas (neither of which had any experience in powersports industry) in the last 8 years makes my head hurt and my stomach ache. Dakar? Twice? Last time on KTM's painted red? 1 million per trip to Dakar? A 2012 Enduro model that should have been scrapped immediately and gone back to the 2011 model until they had the design working properly. Signing 2 high profile pro trials ridersin 2018 instead of one, in an area already over run with too manufacturers fighting for the same small market. Outsourcing the enduro race efforts for high dollars and signing Nambotin, Barragan, Aubert, and McCanney? Why so many big names, sign one big name and get back to the roots of your two stroke which is the young new riders coming up? I could go on and on, but despite their claims of listening to their markets, they did what they wanted to do.

Pierer is aggressive and not afraid to take chances. He owns majority of KTM, 100% of Husqvarna, WP suspension, a MAJOR Radiator company that not only sells radiators back to Husky, KTM and other MC's but to Volkswagon and many Euro Car manufacturers plus 25% of redbull and many, many other projects.

While i haven't seen or been told about the COMPLETE details of the collaboration and i don't know what this will mean for my team of employee's who i love dearly (they work hard for GasGas) and what we have been trying to do in the last 3 years without much support from Spain. I think this backing/cooperation brings a stability much needed, brings a direction of focus which is much needed. GasGas now has a legitimate chance to be one of those brands under the umbrella of the group. I hope GasGas becomes the Chevrolet Buick, but it is up the consumer, the dealer and most importantly the factory in Spain to get their act together and NOT blow this opportunity, or yes, Pierer might scrap it in 3 years.

Lets give it a chance, not run away just yet and support the change, because as much as i don't want to say it...it was needed or GasGas (after the last management) would be gone already. We have done all we can the last 8 months to keep things moving forward with the image that things will be ok. Well, here is our chance to prove that everything......will be ok.

Thanks Mark for your insight. I truly hope myself and others are wrong for you and your crew's sake and for us GG riders. I will try hard to have a wait and see approach.

That said, I was planning on purchasing a new bike (GG of course) within the next year. However, now I'm scared to buy a new GG as I don't know where the company is going. KTM really needs to assure us GG owners that they aren't going to just up and kill the brand or I don't see many people making the investment in purchasing new bikes.

That was inexplicable indeed

I am a GasGas diehard but I am not buying the ?Pierer whitewash, with all due respect to Mark, Pierer only shows up when he smells blood and he wants to highjack new technology(aka husaberg) he will coop the ranger and some other technology then bankrupt GasGas,thus one less competitor for KTM. I am going to buy one of the leftover gassers before they are gone FOREVER. I am very sad to see this happen.

Question (and too late to matter).

Do we know how much did KTM/Pierer pay for the 60% in GasGas? I would be interested in that. He probably didn't pay much. It would have been cool if we could have done a "kickstarter" (note subtle irony) campaign to buy GasGas, and put Mark in charge.

I sense that if Mark was to be in charge, we'd all be better off.

That’s sad, good by GasGas




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Steffy couldn't give 2 pinches of goat s#%t about brands, their employees or consumers. Especially a small brand like GG. He's a cut throat businessman period. He's in the business of making money for himself & investors/shareholders at whatever cost! Arrogance in a nutshell.
They can sugar coat it all they like but GG is dead same as 'Berg & Husky. The name may live on but it won't be a real Gasser if it does. I so wish I'm wrong on this but I know I'm right. 60% is a major controlling share. It's a takeover however ya wanna dress it up. Spain has only got themselves to blame though.

We had orange and black ktms, then we got white and blue ktms and soon we will have red and white ktms.

We knew something had to happen to prevent them from closing their doors. At least this way we will have another year or two of the best GG ever made and some parts availability going forward for the older Spanish GGs.

Mark, thanks for your response and for being willing to engage in the discussion, it's probably hard to know when to comment and when to "let things lay". But it does help.

We wish you (and GasGas) all the best!

Jeff

The next Olympic sport..conclusion jumping.

Great sport haha.

And to be clear (which is hard on social media!) I appreciate all the posts above. My comment to Mark is referring to the big picture, knowing which general issues that come up to speak into.

For me, this discussion is something like therapy - which probably means that I am taking dirt bikes too seriously :) I have been excited about GG developing a new motor (with a more robust starter, for instance). Will the new owners put money into R&D for a new engine, when they have already put it into technology they have recently developed? Does "economy of scale" mean sourcing components that save 5% (or whatever) of costs vs. continuing with those components that GG currently uses?

I appreciate the caution not to "over-speculate" as well. I guess the old phrase "time will tell" comes into play here...we'll know a lot in another year!

Jeff

remember the Italian Husky's? order your spare parts now while they are still available

I'm sad. I really am.
For all that GasGas represented to all of us but most important for all the hard working staff that regretfully, again, face an uncertain future with this company.

I would like to believe that SP has the nicest plans for the brand but simply don't see it that way. They don't need/want any of the technology GG has to offer but does cut some corners on developing a trials bike. What for? MotoGP is their goal now. Electric bikes from Torrot ? Could be but have my doubts.

How much represent the sales of GG worldwide ? 5000 bikes ? Are these numbers that really appealing ? Knowing that a GG rider will not, most likely, buy a Red KTM ?

Whatever he has in line for GG, this is the end of "The GasGas".

P.S. - It just came to mind that my bike is now worth zero euros...

A good advice is where you read it .

I would like to think they are looking at the trials side (i believe tarrot and GG are seperate entities so it would only be a relationship they will purchase of tarrot). I Still don't understand the ktm logic on husky and husaberg, buy them and then close them down. Is it just a way of eliminating opposition one brand at a time?

It would be nice if they were thinking it would be cheaper to build ktm's in spain, but that didn't happen with the other brands ... only time will tell

We can complain about KTM shutting down Husqvarna.
But, look at their sales. Through the roof is an understatement. :eek:

Haha but they're just white KTMs. Husky was bought for peanuts purely for the name(as no one in the US knows Husaberg) & to eliminate competition(cheap bikes). Italian Husky/BMW had nothing else to offer KTM.
Why wouldn't Pierer want 5000 sales a year?! Even 2500 makes his bottom line bigger. He's about making money! This way he eliminates competition & gains more sales.

Yeah, imagine how I feel owning a 2011. However, I will continue to enjoy it regardless of what it's worth to anyone else.

It was my understanding that the White and Blue KTMs (called Husqvarna) were supposed to be the premium version of the orange and black KTMs. They did include the linkage suspension on the white and blue where they used the PDS on the orange and black.

It seems obvious to me. Think about it, what's the only type of motorbike in the world that KTM doesn't already have a very strong place in the market?

Answer: trials bikes.

Acquiring GG (I know, they didn't technically acquire them, but at 60% ownership, they may as well have) allows them to jump straight to the front of the line with very competitive trials models, with lots of history and expertise. A little tweaking of a few technical details, manufacturing processes, and management practices, plus some of the KTM mothership's marketing budget to promote them more, and they'll be seeing an ROI on this deal in a hurry. 100% business decision.

That's what this is about. Which isn't entirely a bad thing. We will almost certainly see strong, competitive, updated trials bikes for the foreseeable future. While some of us certainly won't care for them being tainted with orange blood, it looks like this was better than the alternative of closing up shop forever.

The big downside I see in this is that the enduro line won't likely survive. Husaberg brought a lot of technology to the table to a young, unknown KTM. Husqvarna brought fantastic name recognition, and a great opportunity for KTM (now well established) to brand and up-sell a "premium" bike. GasGas enduro brings nothing of this sort to the table, and if they're not able to differentiate it substantially (not from a technical standpoint, but from a sales standpoint), then they'll kill it.

The only way I could see it working, is that if Husqvarna is the premium brand, GasGas could be the budget brand that competes with the Japanese bikes' price points (or maybe the other cheaper Euro bikes). That said, they'd have a veeeeery fine line to walk to avoid cannibalizing the sales of their higher priced (and higher margin) orange and white bikes. While I as a consumer would love to see a model lineup like this, I doubt seriously they'd actually do it.

Either way, I wish all at GasGas the best of luck, and certainly hope to see them prosper over the coming years in this new relationship.

Do you remember the Swedish ones?

You can get parts for the bigger Italian 4 stroke motors and chassis too....

Take a look at SWM. They are building and selling the old Italian huskies today and you can get parts through them....

Jeff