Is KTM Making A Move To Buy Gas Gas?
Spanish bike manufacturer Gas Gas is neck deep in trouble and if it doesn’t get the lifeline it needs to survive, there’s a strong likelihood that the company could go under before the year ends, maybe even sooner than that. Fortunately, help may be on the way in the form of KTM.
According to numerous reports, the Austrian bike maker is rumored to be lining up a bid to buy Gas Gas. Nothing has been confirmed yet and the two parties have been silent on announcing any potential deal, but if there’s some weight to this, it’s obviously great news for the Spanish company, which is so far in trouble that it’s already halted production and shut down its R&D division.
Having the financial muscles of KTM not only puts Gas Gas back in business, but it also allows the latter to finally move forward with its business, knowing full well that it finally has the kind of stability it hasn’t had in recent years.
That sad, such a deal understandably puts some pressure on KTM to differentiate Gas Gas and its off-road bikes from two companies it already has that does the same thing: Husqvarna and Husaberg. There’s enough reason to be skeptical about this plan because KTM would in effect have too many chefs cooking the same thing in a kitchen. That’s not a sound business plan, even though the company has found a way to make Husky and Husaberg co-exist.
But I’m not putting anything past KTM anymore. It obviously knows what current climate is in the off-road market and probably understands that adding another brand that competes in that segment still has enough differentiation so as not to cannibalise on its other brands. The important thing right now is Gas Gas’ fate. It would be awesome if KTM steps up to the plate and purchases the company. But if it doesn’t, well, you could just as well pay your last respects to Gas Gas.
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Why it matters
We obviously have to take this news with a grain of salt for now until we learn more about what KTM’s plans are. The good thing about this is that there appears to be some parcels of truth behind it, although how much of it will lead to KTM actually purchasing Gas Gas is still subject to a whole lot of speculation.
I’d want to see this happen for the sake of the Spanish bike maker. I don’t know the exact numbers or how much it’s going to take KTM to successfully buy Gas Gas, but I think it’s in stable enough position financially to make something happen.
After all, it’s not like KTM has a bad history of doing things like this. Remember, it’s the same company that brought Husqvarna out of BMW’s purgatory and steered it back to good health in a year’s time. I’m hoping that it can find a way to do the same thing to Gas Gas. It’s going to be a little tricky because of the shared market implications that come with buying another off-road motorcycle company, but if anybody has the template to successfully pull it of, it’s KTM.
For now, we wait to see what happens and hope a deal is made that will make all parties really happy.