KTM Buys
GasGas
K
TM AG (soon to be
renamed to Pierer
Mobility AG) has ex-
panded its umbrella to
now include GasGas
Motorcycles. Black Toro
Capital, the company that
owns the Spanish-based
Torrot-GasGas manu-
facturer, entered into a
business alliance with
KTM, which has acquired
a 60% stake in GasGas.
"A cooperation was signed
and both partners see this as a
starting point for a bright future
of the international well-known
brand GasGas. New models will
be developed alongside the Trial
and Enduro bikes of GasGas,"
stated a release from KTM AG,
adding, "the production of Gas-
Gas products and Torrot electric
vehicles will be continued in
Girona/Spain."
Torrot-GasGas, owned by
Black Toro Capital, has been
wrestling with financial difficulty
after a reported decrease in
sales of more than 50% in 2018,
and a debt of 23 million euros.
According to Diari de Girona in
Catalonia, Torrot-GasGas laid off
20 employees and furloughed
dozens more in May of 2019.
The company's financial hard-
ships go back to 2015, when
GasGas filed for bankruptcy. As
the manufacturer faced liquida-
tion, there were rumors that the
KTM camp was interested in
purchasing the company. Despite
denials from KTM that they had
any interest in doing so, a group
from KTM and Pierer Industry
reportedly visited GasGas in July,
2015. The Austrians were met with
a very hostile display at the Girona
facility, which included a burning
pile of tires and a KTM-clothed
effigy hanging from a noose out-
side a window with a sign reading
"KTM this is not your home" in
German. See the full story here.
The outspoken GasGas work-
ers, who did not want to endure
the same fate as the now defunct
Italian Husqvarna plant in Varese,
succeeded in finding renewed
ownership for the company. The
Contreras family and the Torrot
Group purchased the brand in
2016 through the backing of Black
Toro Capital, ensuring the survival
of the Girona facility and its near
100 employees. Since then, the
GasGas brand increased its pres-
ence in the off-road sector, reveal-
ing new models and a stronger
distribution in the U.S.
Amid rumors of more financial
troubles in 2019, GasGas North
America Operations Manager
Mike Berg reached out to Cycle
News several weeks ago to set
the record straight, maintaining
that the GasGas brand was still
running strong in the U.S.
"GasGas had a very successful
2017 with the new 2018 models in
that time frame," said Berg. "They
did $40 million in sales that year
and $30 million of it was GasGas
sales. Only 10 of it was Torrot
sales. But Torrot decided to take
that cash and invest more into
electric, more into green energy
and they kind of left GasGas
holding the bag for 2019 R&D
and 2020 R&D. That's where the
Black Toro Capital said enough is
IN
THE
WIND
P28
KTM AG has
purchased a 60%
stake in Spanish
motorcycle
manufacturer
GasGas.
