KTM buys 60% of Gas Gas: good or bad news?︱Cross Training Enduro

http://www.crosstrainingenduro.com http://tractionerag.com KTM now owns a 60% share in Gas Gas. Back in 2015 when first talking with Gas Gas, it seems KTM had a less than warm reception from some Gas Gas employees, with a hanged mannequin, burning tyres and a sign saying this is not your home. The big questions with KTM and Gas Gas in a joint venture... Is KTM scared of losing market share? Are they planning on taking over the world? They bought out Husqvarna and Husaberg. Will all bikes be orange in the not so distant future? Even the Japanese bikes? Of course not. But there are plenty of discussions about whether this is a good or bad thing for the industry overall, this KTM Gas Gas joint venture. KTM's research and development team have brought out many innovations over the years. This includes very comprehensive workshop manuals, some very creative bike models, and interesting sales strategies. In certain demographics, KTM has developed a lot of brand loyalty. In other demographics, less so. But to be a bit more serious, what are KTM's intentions? Will they gut the company in a similar way to Husqvarna and Husaberg? Well publicly they have stated the following: KTM will keep production at the existing factory in Spain. New models will be developed alongside the trial and enduro bikes. KTM's platforms will be used to develop a new enduro range. Motocross versions of Gas Gas will be developed. With KTM and GasGas joining forces we’ve taken a look at the deal and what it means for enduro and the Gas Gas-produced bikes in the future. KTM Industries AG and Black Toro Capital signed an agreement to work together – saving the GasGas factory and boosting KTM product range. After several years of “will they or won’t they?”, KTM finally pulled the trigger and announced a joint venture with Spain’s GasGas Motorcycles in late September, 2019. The latter company, which is currently owned by Black Toro Capital, has officially signed a cooperation agreement with KTM. It seems quite a simple deal and the conclusion is we will see red bikes alongside orange and white ones in dealer showrooms. What does it mean for GasGas and what is the point for KTM? Here’s what we know. GasGas has had an up and down recent history. GasGas is primarily known for its trials and enduro bikes, and according to KTM’s announcement, will continue in that vein at its headquarters in Girona, Spain. KTM wishes to add the storied GasGas brand to its existing KTM and Husqvarna lineup, with GasGas and Torrot electric vehicles continuing to be manufactured at the Spanish factory. Bankruptcy, staff layoffs, buyouts, re-launches, a fire and poor sales have put the the Spanish manufacturer, and all associated with it, through the mill. Despite that “the brand” GasGas remains a strong one which is why when news arrived last week that KTM were buying a major share of the company, it came as no surprise. It’s no secret that KTM has been eyeing the troubled GasGas for some time. In 2015, the Spanish manufacturer filed for bankruptcy in May of that year. Once that happened, GasGas understandably began seeking new investment to help it recover. We know KTM were not the only interested party and understand Sherco owner, Marc Tessier was also in the running. And units that were already manufactured, as well as spare parts, in order to allow existing Gas Gas owners to enjoy their machines. At this stage we don't know what that means for existing Gas Gas enduro bikes. Will that famous KYB suspension be replaced with KTM owned WP suspension? Will the engines stay carbureted but just get an update? Or will KTM's engines be slotted in? Will Gas Gas prices stay the same, so that KTM has their premium priced brand with the Husqvarna range and a cheap brand too? If Gas Gas was going to fail, then overall it should be a good thing if the company is kept alive. And if KTM develops the existing models but keeps the KYB suspension and low prices they may even retain the brand loyalty of some current Gas Gas owners. But I'm sure the mere fact that KTM now owns 60% of Gas Gas means some very brand loyal riders will desert and head for Sherco, Beta or TM. Me? I'm going to reserve judgement and see how it all plays out. Very interested to know what you guys think, leave a comment below. #gasgasktm #ktmgasgas #crosstrainingenduro Music: https://www.purple-planet.com Music: www.playonloop.com Music: https://soundimage.org Music: https://audionautix.com/ Music by Tobu: https://tobu.io http://youtube.com/tobuofficial Music: https://www.bensound.com/royalty-free-music Music: https://soundimage.org Music by Atch: SoundCloud: https://bit.ly/AtchSoundCloud Spotify: https://bit.ly/AtchSpotify Instagram: www.instagram.com/atchmusic