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General Discussions & Announcements General Announcements, General Questions, e.g. What bike do I buy?, etc.


View Poll Results: Are the KTM TPIs just junk?
Yes 11 52.38%
No 10 47.62%
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  #11  
Old 02-06-2020, 05:40 PM
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blitz11 blitz11 is offline
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Yikes! THAT is a scary story. You can't make that stuff up.

Hmmmm. We see that someone placed the value of the company at "150 million plus." (I assume that's Euros.)

Someone is going to buy the platform? KTM may own the name "GasGas," but someone else will own the design, dies, building (?), etc., and that entity will support former and current machines?

In this age of "kickstarter," (pun is convenient), would the new owner consider crowdsourcing or kickstarting to secure funds to keep the marque alive by whatever name? I've seen weirder ideas, but the thought of being able to keep the bike i have and like for a few thousand dollars is more attractive to me than having to give up on my ride when it breaks and I can't get parts, and I have to buy a new bike.

How cool would it be for members of this forum to own a piece of the brand? I'd invest in this, especially if Mark were made CEO of the new entity. Maybe we help bankroll Mark to buy what's next.

The value of my GM stock vanished when GM went bankrupt, but I still have two pretty cool stock certificates (oddly, with pictures of locomotives instead of Cars, but GM did own Lectro-motive). (I worked there.) It would be cool to have my stock certificate framed and hanging in my shop.



Last edited by blitz11; 02-06-2020 at 05:40 PM. Reason: typo
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  #12  
Old 02-07-2020, 08:55 AM
GASGASCWB GASGASCWB is offline
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Quote:
Originally Posted by Torrot NA - Mark Berg View Post
Very true Mr Hadfield. The "managing directors" at the time were taking the profits of the 2018 model line up and using that money for other entities that they continued to purchase while the whole time the investing company BTC sat by and watched. It was crazy.

2017 (model year 2018) saw 40 million in sales (30 million in GG and 10 million in Torrot (Muvi, Ekids). However, the Muvi wasn't ready for market and had over 2 million in warranty claims (that isn't a good percentage). Plus out of that 40 million, they transferred over 6 million to a helmet project in Atlanta (my blood pressure still rises over that one as many of us told them time and time again....don't do it!). That project has had ZERO return of investment.

They paid a pro basketball player to be an ambassador, they sponsored a southern Spanish soccer team, they sponsored the Electric Formula one racing. The list goes on and on, all in an effort to create a Torrot Electric Europa hot commodity ripe for new investment.

After the fire (and a dislike for the Catalonian movement happening) they moved the parts warehousing/distribution to the middle of Spain. So ready for this? Bikes produced were shipped 3 hours inland to their new 3rd party warehouse, then loaded in shipping containers only to be shipped the 3 hours back to Barcelona to the port. They set up retail showrooms in both Barcelona and Madrid for the Torrot Muvi's. One bike model for an entire store..... They acquired or bought several other entities that are now in bankruptcy or closing.

Their thought was to make the entire company look "tech" and attract investors. Some financial institutions valued the company at 150 million plus so they proceeded to grow the entire tech side using GG money in the thoughts the "new investment money" will come. Guess what....IT DIDN'T. All the San Fran tech money didn't want to be involved with a "motorcycle manufacturer" that was also into tech and green energy.

By the fall of 18 when the original investment company BTC realized there was no new money coming it was too late, way too late. Bills had stacked up, the helmet company in Atlanta had HUGE issues with no sales, the other companies were stagnant or dead and the Torrot Muvi was now a product 3 years old with no changes or revisions. No money was left to pay bills, or buy parts to build GasGas bikes that were marketable and profitable.

Spanish labor laws and unions make it VERY difficult to lay off or fire people, quckly. The employee has GREAT coverage over there. Unlike here, if a company is struggling and you decide you need cutbacks, it isn't that easy and takes months plus pay. The company continues to get in deeper financial trouble while negotiating with the government.

There is more to the story on the KTM "collaboration" but i can't elaborate on that segment.

I tell my team to hold our heads high here. We did everything we could with the tools and what little financial help from Spain we had. 2016, the first year we did 2.5 mil in sales, 2017 we went to 5.2 million with only trials and two displacements in enduro. 2018 orders were for over 6.5 million but the bikes never came.

Sadly by Aim Expo of 2018, things weren't looking too good and we continued to hope and pray Spain would figure out a way so we could rebound. Jubal went a different career direction as we didn't have enough for him. By midsummer of 19' Rod saw the writing on the wall and took another position (don't blame him at all, he held on as long as he could).

The 2019 racing season saw us "limp" along and all of our riders were VERY good about it and understanding of the situation but it stunk. Stunk not being able to give 100%. Our regional program was a huge success and we had championships all over the USA. Our School of Champions riders did great too, plus our 3 pro riders on the enduro side, and 4 on the trials side did a GREAT job with very little budget. Now to see all of them on different product and gone....its heartbreaking. We created some great relationships with all of them. I honestly do wish them the best success with their new brands, but dang does it sting!

Seeing dealerships we worked with now taking on the competitors product is even harder to swallow, but business is business and we are in no position to make those dealerships profitable.

KTM will do things differently for sure, they have the marketing tools, the financial backing and the team to make it happen. No, it won't be the same GasGas...at all, but i think it will succeed.

There will be a different manufacturer that steps into the current "GG Enduro platform". I met with one of the two contenders last week. Parts for enduro will NOT go away. Announcements will be coming in the months to come.

We can't change the past and all the mistakes that were made but we learn from the experience.

We want to THANK EACH AND EVERY PERSON that has supported GasGas through the years. Without you, we wouldn't have loved our job so much!
First, thanks so much for your information Mark.

I have nothing against KTM bikes!

I just think they are very cheap to build.

All "new" bikes are actually much more fragile than the models of the 2000s...

The KTM assembled here in Brazil have recurring electrical problems...

BETA literally dismount...

SHERCO are reasonable, but the parts is very difficult to find...

GASGAS was a bet that unfortunately did not work for administrative reasons, as exposed by Mark.

The only thing that interests me is whether there will be spare parts for a reasonable period of time.

My bike is very good and I have no intention of changing it, not do I intend to take the loss due to the new bankruptcy of the factory.

Mark:

Is the possibility of someone assuming the "old" model of GG a concrete reality or a possibility?

Was it somewhere in the USA or a European company?

Thank you for your attention.
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  #13  
Old 02-07-2020, 09:55 AM
AssGas AssGas is offline
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Good morning Mark,

I hope this day finds you well. First, I would like to thank you for the update and where all the pieces are at in the puzzle at this moment. Second, a big thanks goes out to you and your team for the effort, support and commitment you have demonstrated to the customer and dealership network through this difficult time. Your actions speak volumes about you character and how much you truly care.

Thank you for all your hard work and dedication.

David M. Case
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  #14  
Old 02-12-2020, 07:48 AM
Chaz955i Chaz955i is offline
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Posts: 119
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Quote:
Originally Posted by Torrot NA - Mark Berg View Post
Very true Mr Hadfield. The "managing directors" at the time were taking the profits of the 2018 model line up and using that money for other entities that they continued to purchase while the whole time the investing company BTC sat by and watched. It was crazy.

2017 (model year 2018) saw 40 million in sales (30 million in GG and 10 million in Torrot (Muvi, Ekids). However, the Muvi wasn't ready for market and had over 2 million in warranty claims (that isn't a good percentage). Plus out of that 40 million, they transferred over 6 million to a helmet project in Atlanta (my blood pressure still rises over that one as many of us told them time and time again....don't do it!). That project has had ZERO return of investment.

They paid a pro basketball player to be an ambassador, they sponsored a southern Spanish soccer team, they sponsored the Electric Formula one racing. The list goes on and on, all in an effort to create a Torrot Electric Europa hot commodity ripe for new investment.

After the fire (and a dislike for the Catalonian movement happening) they moved the parts warehousing/distribution to the middle of Spain. So ready for this? Bikes produced were shipped 3 hours inland to their new 3rd party warehouse, then loaded in shipping containers only to be shipped the 3 hours back to Barcelona to the port. They set up retail showrooms in both Barcelona and Madrid for the Torrot Muvi's. One bike model for an entire store..... They acquired or bought several other entities that are now in bankruptcy or closing.

Their thought was to make the entire company look "tech" and attract investors. Some financial institutions valued the company at 150 million plus so they proceeded to grow the entire tech side using GG money in the thoughts the "new investment money" will come. Guess what....IT DIDN'T. All the San Fran tech money didn't want to be involved with a "motorcycle manufacturer" that was also into tech and green energy.

By the fall of 18 when the original investment company BTC realized there was no new money coming it was too late, way too late. Bills had stacked up, the helmet company in Atlanta had HUGE issues with no sales, the other companies were stagnant or dead and the Torrot Muvi was now a product 3 years old with no changes or revisions. No money was left to pay bills, or buy parts to build GasGas bikes that were marketable and profitable.

Spanish labor laws and unions make it VERY difficult to lay off or fire people, quckly. The employee has GREAT coverage over there. Unlike here, if a company is struggling and you decide you need cutbacks, it isn't that easy and takes months plus pay. The company continues to get in deeper financial trouble while negotiating with the government.

There is more to the story on the KTM "collaboration" but i can't elaborate on that segment.

I tell my team to hold our heads high here. We did everything we could with the tools and what little financial help from Spain we had. 2016, the first year we did 2.5 mil in sales, 2017 we went to 5.2 million with only trials and two displacements in enduro. 2018 orders were for over 6.5 million but the bikes never came.

Sadly by Aim Expo of 2018, things weren't looking too good and we continued to hope and pray Spain would figure out a way so we could rebound. Jubal went a different career direction as we didn't have enough for him. By midsummer of 19' Rod saw the writing on the wall and took another position (don't blame him at all, he held on as long as he could).

The 2019 racing season saw us "limp" along and all of our riders were VERY good about it and understanding of the situation but it stunk. Stunk not being able to give 100%. Our regional program was a huge success and we had championships all over the USA. Our School of Champions riders did great too, plus our 3 pro riders on the enduro side, and 4 on the trials side did a GREAT job with very little budget. Now to see all of them on different product and gone....its heartbreaking. We created some great relationships with all of them. I honestly do wish them the best success with their new brands, but dang does it sting!

Seeing dealerships we worked with now taking on the competitors product is even harder to swallow, but business is business and we are in no position to make those dealerships profitable.

KTM will do things differently for sure, they have the marketing tools, the financial backing and the team to make it happen. No, it won't be the same GasGas...at all, but i think it will succeed.

There will be a different manufacturer that steps into the current "GG Enduro platform". I met with one of the two contenders last week. Parts for enduro will NOT go away. Announcements will be coming in the months to come.

We can't change the past and all the mistakes that were made but we learn from the experience.

We want to THANK EACH AND EVERY PERSON that has supported GasGas through the years. Without you, we wouldn't have loved our job so much!
Thanks for the update. From where I sit you have an impressive team from the top down. All very dedicated, passionate people. I had the pleasure of meeting Rod at AIMExpo and what a class guy. I can't say I know him based on one meeting but that guy clearly loved GG and it must have really stung to have to move on. I sincerely hope the best for you an your team. It is enthusiasts like you who put in the hours, and take the financial risks, that make this possible for the rest of us. I'm sure I have no idea the level of stress this has caused you and your team. Best of luck in the future. I look forward to where you take this.
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  #15  
Old 02-16-2020, 01:28 AM
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adv rider adv rider is offline
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Thanks for the update. I think the new ktm "gasgas" will be good bikes...but I dont want a bike that everyone has, which was why I started riding gasgas. I am hoping to find a lightly used 19-20 model...other wise the Sherco looks to be a good alternative
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  #16  
Old 02-16-2020, 01:42 AM
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Quote:
Originally Posted by adv rider View Post
Thanks for the update. I think the new ktm "gasgas" will be good bikes...but I dont want a bike that everyone has, which was why I started riding gasgas. I am hoping to find a lightly used 19-20 model...other wise the Sherco looks to be a good alternative
There should be an abundance of '18/19's around with the folk who buy and sell yearly, now there'll be the folk who are scared shitless that Team Pumpkin has bought Gasgas out.

Keep your finger on the pulse, you'll snare one for next to nothing.
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  #17  
Old 02-17-2020, 06:38 AM
hadfield4wd hadfield4wd is offline
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Mark,

Thank you for the uodate and I hope you and your team and family weather this storm.

Matt

Sent from my SM-G960U using Tapatalk
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