• Gas Gas Goes Into Liquidation, Search To Find Buyer Begins

The financial problems surrounding Gas Gas appears to have no signs of abating anytime soon after the company announced its failure to renegotiate its mounting debts. With its options dwindling by the day, the Spanish enduro and motocross bike manufacturer has relented on proceeding with the liquidation of its assets.

In a letter sent to its “customers, partners and friends”, Gas Gas admitted going through numerous legal proceedings to get its house in order. It’s tried to renegotiate its debt and find investors willing to help with its financial woes. It even received a loan from the Spanish government, which is incredible considering how much the economy in Spain is struggling these days.

Yet none of those avenues ended up working for the company, forcing it to finally concede to selling its production unit, including its factory, to prospective buyers. It’s a similar step taken by Erik Buell Racing when it announced its own bankruptcy back in April 2015.

Where Gas Gas goes from here is anybody’s guess. While I’m hoping that there’s still some chance that we see the company come back, it’s become increasingly difficult to see the forest for the trees, especially when the company seems to have exhausted all of its options with little success.

The only avenue that appears to be available is to sell off its production unit, something the company said it’s going to do at the soonest possible time to “ensure a solid and sustainable long term viability of the company.”

Right now, those words are ringing hollow, but like most optimists, I’d like to believe that Gas Gas can survive this latest setback and come back in one form or another.

Continue reading to read more about Gas Gas’ latest financial setback.

Why it matters

I want to remain hopeful for a company that has endured so much turmoil simply because it seems inhumane to wish ill will on somebody else. But I have to say it, too. Whatever optimism and hope I have for Gas Gas is dwindling by the day.

It would be a huge victory if the company can sell off its production unit quickly. Not only would that allow Gas Gas to reactivate its factory and allow it to continue producing its motorcycles, but more importantly, it would at least help in ensuring that the company remains relevant in some capacity.

From an investor’s perspective, acquiring Gas Gas on the cheap could end up being a shrewd purchase. If said investor can take care of the company’s debts, it could be sitting on an ownership stake of a brand that can technically restart production at a whim.

Whether a company does bite the bullet is another thing entirely. We’ve seen episodes like this in the motorcycle industry in the past so it’s not really out of the realm of possibility that something like this can happen.

There have even been rumors that KTM was looking to step in and purchase Gas Gas’ production unit, although the Austrian motorcycle giant has thus far denied said rumors. If that’s not an option, there’s also the possibility of a Chinese group coming in as a prospective buyer, similar to Shineray’s purchase of SWM.

However this plays out, I just hope that Gas Gas somehow survives this harrowing ordeal. I don’t want to see a company close down for good because nobody thought it was worth investing in it.

That’s not a good look for the industry as a whole.

Kirby Garlitos
Kirby Garlitos
Automotive Aftermarket Expert - kirby@topspeed.com
Kirby’s first exposure into the world of automobiles happened when he caught Knight Rider on television as a five-year old boy. David Hasselhoff didn’t leave much of an impression on him (that happened later on in Baywatch), but KITT certainly did. To this day, Kirby remains convinced that he will one day own a car with the same ‘spirit’ as the original KITT (not the 2008 monstrosity). He doesn't know when that will be, but until then, he’s committed to expressing his love for KITT, and all cars for that matter, here at TopSpeed.  Read full bio
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Press Release

20 JULY 2015
Dear customers, partners and friends,

We are contacting you with this update regarding the current situation with the company.

As you all know, in recent months the company has gone through several legal proceedings in order to renegotiate the debt and to continue operations. Unfortunately, despite the valiant efforts made to achieve this goal, it has been impossible to reach and finally they have declared to proceed with the liquidation of Gas Gas Motos SA.

In this process, the current management team, the receivers and the council representatives of all employees are working full-throttle to collect all of the necessary information to begin the process of selling the factory and to close the subsequent sale process with potential buyers in the fastest way possible.

The target set by the sale of the production unit is to be able to reactivate the Gas Gas Motos factory in a way that allows us to produce our motorcycles, both enduro and trial, and ensure a solid and sustainable long term viability of the company.

During this stage of the sale process of the production unit, we at Gas Gas will make our utmost efforts to ensure the level of service in the areas of spare parts as well as in the after-sales department in order to avoid penalizing our customers during this period.

From Gas Gas, we convey our sincere thanks for your support during these months and wish to convey our total conviction on the feasibility of satisfactory results during the production unit sale process.

Best regards,


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