Gas Gas are reassuring customers concerned about factory production stoppages with the statement “after-sales service and spare parts will maintain operations as usual.”
Amid a continuing flurry of press reports and confusion regarding the future of Gas Gas motorcycles, the management has issued a letter to try and clarify the situation. Managing Director, Jordi Arilla Arts states production and parts supply continues despite the “cost containment measures” and the issuing of a Temporary Employment Regulation Process at the factory in Salt.
The long and the short of it is there are heavy financial losses at Gas Gas which need to be addressed by these cost containment measures but the focus is on continuing the supply to subsidiaries around the world and, crucially, in keeping the parts service flowing as normal.
Gas Gas Factory Team riders have been racing, notably at the Trefle Lozerien (above) but were back on the pegs at both EnduroGP and TrialGP World Championship events last weekend in Italy and The Netherlands respectively and that must be viewed as a positive sign.
In the letter released this week, June 26, Managing Director, Jordi Arilla Arts clarifies the situation at the factory in Salt, Northern Spain:
Photo Credit: Nicki Martinez + Future7Media/Andrea Belluschi Jon PearsonEnduro21 Editor and Bike Testerjon.email@example.com
After some noise published by different digital media in Spain, TORROT / GASGAS would like to clarify some aspects about the current situation of the company.
Recently, TORROT / GASGAS has designed a feasibility and continuity plan based on cost-containment measures that implies an annual saving of 45%, the optimization and improvement of processes and industrial margins and the issue of a Temporary Employment Regulation Process, which affects the workforce of all group companies: Torrot Electric Europa SA, GasGas Motorcycles SLU and Velocípedo Torrot S.L.U. for a period of three to six months.
These measures aim to encourage more flexible cost structures in order to ensure the continuity of the three companies. By no means, the Management Board has planned to cease production, which continues normal operations according to production planning, nor the closure of the factory of Girona.
In this line of work, the company is negotiating with the Company Labour Committee to agree the range of the Temporary Employment Regulation Process. The evolution of these negotiations will limit the final scope of the process that will always adapt to the needs of production.
At the same time, the Board is engaged in talks with several parties to assure the necessary liquidity of the companies to stabilize cash flow, the production operations plan and the evolution and development of the product catalog.
We keep focused on commercial and after-sales operations in order to meet deliveries of pending orders of the MUVI model to several European Moto-Sharing operators and the launch of the new trial and enduro GASGAS 2020 models. The after-sales service and the supply of spare parts will maintain operations as usual.