Torrot/GasGas says it is not ceasing production but is cutting costs to ensure the future of the company. Meanwhile, UK importer John Shirt Jr says it’s “business as usual”.
The Spanish manufacturer said it had been necessary to clarify the situation following “some noise published by different digital media in Spain”.
MD Jordi Arilla Arts says in a statement: “Torrot/GasGas has designed a feasibility and continuity plan based on cost-containment measures that implies an annual saving of 45%, the optimisation and improvement of processes and industrial margins and the issue of a Temporary Employment Regulation Process (TERP), which affects the workforce of all group companies: Torrot Electric Europa SA, GasGas Motorcycles SLU and Velocípedo Torrot S.L.U. for a period of three to six months.
“These measures aim to encourage more flexible cost structures to ensure the continuity of the three companies. By no means, the management board has planned to cease production, which continues normal operations according to production planning, nor the closure of the factory of Girona.
“In this line of work, the company is negotiating with the company labour committee to agree the range of the TERP. The evolution of these negotiations will limit the final scope of the process that will always adapt to the needs of production.
“At the same time, the board is engaged in talks with several parties to assure the necessary liquidity of the companies to stabilise cash flow, the production operations plan and the evolution and development of the product catalogue.
“We keep focused on commercial and after-sales operations in order to meet deliveries of pending orders of the MUVI [Torrot electric scooter] to several European Moto-Sharing operators and the launch of the new trial and enduro GasGas 2020 models. The aftersales service and the supply of spare parts will maintain operations as usual.”
The statement ends by thanking customers and suppliers for their support.
JOHN SHIRT JR
John Shirt Jr is the UK importer of GasGas and has been involved with the company since 1988.
“It’s business as normal, although it’s not normal, it’s very, very tough. GasGas went bang in 2015 and everybody thinks it is happening again. That’s not the case.
“The fact is that the company is undergoing a massive restructuring to get rid of a lot of surplus staff. If you compare the size of the workforce with other small manufacturers, it’s ridiculous. The staff are protected by a union and the way the company has to proceed lawfully is to be seen to have a temporary closure. They are not closing, they are restructuring and this is what they have got to do. The union protects the workers, which is fine; the company has to protect the factory.
“It’s not good because people will think twice about buying the product. There’s no issue with the product. We are cracking on, trying to win the British enduro championship and the British trials championship.”
Additional headwind had come from the 20% discounts from KTM/Husqvarna, which were announced six months ago and were still hitting Beta, Sherco and GasGas.
“People are saying GasGas is in trouble again. It has been in trouble for 30 years. I’m used to Catalan manufacturing companies having issues. It’s just the way they are. We will just crack on as usual.”
GasGas specialises in off-road motorbikes and while historically it is best known for its trials machines, it also produces enduro and quad bikes.
Torrot acquired GasGas in 2015 and pledged to invest €13 million investment in the brand over the next three years to restore the brand’s place in the trials market, developing a new enduro model and venturing into the growing electric bike market are all on the agenda.