Gas Gas Stops Production Over Unsettled Financial Problems
Spanish motorcycle manufacturer Gas Gas is in a lot of turmoil in these and saying that just might be an understatement. The company, which has been struggling to stay afloat in recent months, is sinking further and further down after being forced to stop production in an attempt to address its financial issues.
The uncertainty surrounding the company’s future has put the jobs of around 500 employees in limbo. According to company president Yariv Gilat, there’s no assurances that these employees will still have jobs in the future as the company desperately tries to find new agreements with banks and modify its own long-term financial plans.
You know it’s bad when the company tells its employees to stop everything they’re doing because it can’t afford to do them anymore. That’s what’s happening in Gas Gas now as production has stopped on everything. Even the company’s research and development department has been closed down at the moment.
Through all of this, there does appear to be a silver lining for the Spanish company. Multiple reports have indicated that a possible investor could be on the horizon, although specific details on that end have yet to be disclosed.
Click past the jump to read more about Gas Gas’ financial problems.
Why it matters
I sincerely hope that Gas Gas can get out this financial ruin and be able to stand on its own two feet again. It would be a shame if the company, which has given us some pretty interesting off-road bikes like the EC and MC models.
But it is what it is, right? As much hope as we want to throw Gas Gas’ way, it’s still up to the company to get back into the game. Right now, it appears that the problems are only getting worse and it’s becoming more and more likely that Gas Gas needs to get some kind of financial care package at the soonest possible time.
Reports say that the company needs somewhere around $30 million to get its house in order. It’s not exactly that much for a company plying its craft in the motorcycle industry. The only issue is where will the company find somebody who has $30 million just sitting around.
I’m rooting for you, Gas Gas. Get your finances fixed and get back in the game!
Source: Car News