The storied history of the motorcycle industry in Catalonia took another turn last week - probably for the worse.
Gas Gas Motos Chairman Yariv Gilat announced that, pending bank approval of a debt restructuring plan, the company has had to suspend production at its factory near Girona in North Eastern Spain.
The company says that it has been working on a plan that includes new shareholder investment to support the company's growth, but that "the banks have delayed their answer and forced us to start some legal actions in order to protect the company and push the process forward.
"As part of this process, we had to stop production during the past days, so there will probably be delays of new bikes and spare parts".
It has been no secret that Gas Gas has been struggling in recent years, and Gilat has been honest enough to admit that Gas Gas has been "facing many challenges ... the company has substantial financial debts from previous years that affected our day to day operations in all aspects.
Last year, the Catalan government agreed to provide Gas Gas with €2 million to fund the plan, including acquisition of new technology to improve their two and four stroke engine production. That decision followed a €4 million investment by an international consortium a year earlier.
Last year, it was announced that Gas Gas would merge with Ossa and re-launch that brand, having previously agreed to share production facilities and personnel. Ossa was re-launched in 2009, three decades after its closure, and were believed to be producing around 800 trials motorbikes. At this time it is unclear as to whether or not Ossa production has also been suspended, but it looks very likely that it has.
Gas Gas itself was founded in 1985, so was hoping to celebrate its 30th anniversary this year. It is estimated that the company was producing some 9,000 bikes per year as recently as 2012/13, exporting to over 50 countries and generating some 500 direct and indirect jobs in Catalonia.
www.gasgasmotos.es
