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GAS GAS IN TROUBLE

Spanish trials and enduro bike brand Gas Gas is to reduce the workforce at its factory in Salt near Girona, after reporting a sales decline. The company’s management has launched a formal consultation process that could lead to redundancies for at least 10% of the plant’s 150 staff.

This is the second time Gas Gas has suffered commercial difficulties, after having become insolvent and ceased production in 2015. The defunct business was then bought out of bankruptcy for £8.4m by leading Spanish electric motorcycle and scooter manufacturer Torrot, with funding from private equity investor Black Bull Capital. Gas Gas off-road production resumed at Salt in March 2016, with about 90% of products exported. Last year, Torrot invested a further £1.7m to launch the brand’s first electric trials bike.

There may be some connection with Torrot’s recent decision to relocate its own manufacturing activities and headquarters out of the Catalonia region at Mataró, relatively close to Gas Gas, to a new £13.8m plant at Cádiz in southern Spain.    
 

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