What to expect for 2016?

[Jakobi]

From the Australian Importer/Distributer:

Regarding the recent news about Gas Gas and insolvency, last week it became official and the companies assets will be sold off to pay creditors.

This at least puts an end to the uncertainty we have experienced up to this point, and actually now makes it possible for the next investor to step forward and purchase what they need, without the debt burden, at the right price, and without the union issues that have been negatively effecting Gas Gas up to this point.

Regarding parts, we are still getting parts from Spain, however, we are also working on establishing direct lines of communication to the suppliers of Gas Gas, so we are not so affected by the sale of the company going forward.

We can only hope that the sale of assets is quick, and we can move forward with the new owners as soon as possible. We were really looking forward to seeing that EC 320 F, with EFI in the 2016 MY. Maybe thats now a 2017 addition to the range.....

We know there were a number of potential buyers of the business, and it is only now that these people can step forward and pick up the assets without the debt.

Lets hope this is all resolved in good time. Jeff

[GLantern]

That is a nice piece of news, is the same thing being done in NA with the lines of communication?


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[2taddict]

Originally Posted by Jakobi

From the Australian Importer/Distributer:

Regarding the recent news about Gas Gas and insolvency, last week it became official and the companies assets will be sold off to pay creditors.

This at least puts an end to the uncertainty we have experienced up to this point, and actually now makes it possible for the next investor to step forward and purchase what they need, without the debt burden, at the right price, and without the union issues that have been negatively effecting Gas Gas up to this point.

Regarding parts, we are still getting parts from Spain, however, we are also working on establishing direct lines of communication to the suppliers of Gas Gas, so we are not so affected by the sale of the company going forward.

We can only hope that the sale of assets is quick, and we can move forward with the new owners as soon as possible. We were really looking forward to seeing that EC 320 F, with EFI in the 2016 MY. Maybe thats now a 2017 addition to the range.....

We know there were a number of potential buyers of the business, and it is only now that these people can step forward and pick up the assets without the debt.

Lets hope this is all resolved in good time. Jeff

If manufactured of high quality I think whoever gets the EC320F is going to have a real hit on their hands. I can see outstanding reviews on that one.

[wrench]

It sure would be nice for an investor from the USA would buy it, we need an American off-road brand and manufacturing here.
No offense towards other locales!

[Vindicator]

Originally Posted by Jakobi

From the Australian Importer/Distributer:

... and actually now makes it possible for the next investor to step forward and purchase what they need, without the debt burden, at the right price, and without the union issues that have been negatively effecting Gas Gas up to this point.

How real is this ? What investors are lining up to buy the "good GG" ? If they do, and I really hope they do :-) , will they still call it Gas Gas ? Can Gas Gas brand name still be used ? Remember that KTM "killed" Husaberg...

[webmaster]

Just as an FYI - I read news reports where both Ducati and MV Augusta had previously made offers to purchase the company... At the time, they were rejected by the board of directors.

This is in addition to the Swiss company that had previously signed a letter of intent.

Jeff

[2taddict]

Originally Posted by webmaster

Just as an FYI - I read news reports where both Ducati and MV Augusta had previously made offers to purchase the company... At the time, they were rejected by the board of directors.

This is in addition to the Swiss company that had previously signed a letter of intent.

Jeff

MV and Ducati both put out exceptional high end products. Probably would keep the Gas Gas name as did MV with Husky. This whole saga could be the begining and not the end me thinks.

[Jakobi]

The rumour I have heard is that the Swiss Investor is also the owner of S3, who currently produce most of casting for GG already, and have their factory just over the fence. How much truth there is to it? I don't know.

I don't expect any massive changes to occur over night. It's anyones guess how long the process could take, and what name changes etc may be incurred. Things will be what they are.

[Simmo737]

Yeah jake, that was me, I met the owner of the hell team when I bought some s3 bar ends off him this year, he knows everyone over there and goes over a lot. He filled me in on the s3 connection, and detailed how a lot of the castings are outsourced to s3 whom have superior production equipment. I merely speculated that the mysterious Swiss group was s3 as the guy that owns it is Swiss. As an aside he showed me the reiger trials shock and explained how it's truly revolutionary as it has dual speed rebound and other trick stuff.

With the info on Ducati being interested it's all starting to make sense. I think the Israelis have been outmanoeuvred by the banks. I would suggest the Israeli investors saw gg as an eventual industry rationalisation target and we're hoping to get it for a song and sell it on.

If you look at what gg is, it's a brand, with some corporate knowledge/design history of how to build a conventional trials and off-road motorbikes, they also have a spare parts pipeline which is usually the most profitable part. The production line is worthless, the workers (God bless em), unfortunately can be replaced, the parts suppliers will still be there (except marz, but I reckon the pfp fork will miraculously appear with Sachs written on it). So there is no way the banks would liquidate nothing, and destroy a company that was a going concern unless they had a buyer. They usually chapter 11, voluntary receivership or what ever you want to call it and trade out the brand so the recover at least the brand value.

Now onto the bigger picture. Europe has four main motorcycle brands, BMW, Ducati, Triumph and Katovarna. The Japs obviously are huge worldwide, as are Harley.

BMW has road and adventure, and is a tiny slice of a huge CAR company, they tried to move into off-road, but couldn't find the uniqueness/success they needed to maintain their brand flavour and realised that making dirt bikes is harder than you think, and that's why they basically all look the same. They took a big expensive stab at it and showed every other manufacture how not to enter the off-road market then sold it to the biggest off-road manufacture to protect their business from other players (triumph or Ducati).

Ktm 8 years ago moved onto the road, and have expanded their adventure lineup, whilst beginning to own off-road.

Ducati and triumph have both moved into adventure and probably see GG as an easy way into off-road. but not with debt and not with workforce issues. I would not expect a dumb play like BMW did with the g450/449 husky though. They just want market share and somewhere to start.

Why not buy Beta? Family owned company and too expensive, well run so no easy fix capital improvements. Bout the same size as GG so why not buy a bargain.
TM, sherco? Too small, no history.

The Israelis saw this and had a go but the big companies were shrewd enough to see it and the timing (all important as well).

Just my two cents.

Ps, Ducati is owned by AUDI, forgot mention. I forgot to mention piaggio, whom are huge but seldom have had anything off-road at all

[twowheels]

Interesting analysis Simmo.