Just saw this today, interesting information therein:
KTM AG Faces Financial Turmoil: Impact on MotoGP and Future Strategies
KTM AG, along with its subsidiaries KTM Components and KTM Research & Development, has entered bankruptcy proceedings, putting over 3,600 jobs at risk. The company is facing a combined debt of €2.9 billion, with KTM AG accounting for €1.8 billion. In response, KTM has initiated a reorganization process to stabilize its operations.
Key measures include reducing production, implementing short-time working hours for some employees, and laying off an additional 500 staff by the end of 2024, following earlier workforce reductions. The surplus of 100,000 unsold motorcycles has further intensified the need for cost-cutting measures.
The financial crisis has raised concerns about the continuation of KTM’s motorsports programs, including its MotoGP team, which reportedly costs €70 million annually. Investments in lower-class racing categories like Moto2, Moto3, and the Red Bull Rookies Cup are also being reconsidered.
Despite these challenges, KTM remains committed to its MotoGP efforts. According to Pit Beirer, KTM Motorsports Director:
“Fortunately, the bike for next season is ready and waiting in the workshop. The start of the 2025 season is organised. That helps us enormously in the current situation.”
To reduce expenses, KTM plans to transfer the financial burden of lower-class racing to customer teams and is reviewing its role in the Red Bull Rookies Cup, which has traditionally served as a talent development platform for various manufacturers.
MotoGP is also set to undergo significant changes, with a freeze on engine development starting in 2026 and the introduction of a new technical era in 2027. Planned changes include a ban on ride height devices, reduced aerodynamic features, and the transition to smaller 850cc engines. These adjustments will require manufacturers to redesign their bikes, adding financial pressure to KTM and others.
Beirer commented on the situation:
“These plans are currently on hold until we have clarified how we are going to proceed.”
Manufacturer contracts with MotoGP organizer Dorna Sports are valid until the end of 2026, with renewals under negotiation. While there is no indication of brands exiting the championship, KTM’s financial health and strategic decisions will be pivotal to its future involvement.
KTM’s restructuring efforts highlight the challenges of maintaining a competitive presence in motorsports amid financial difficulties, leaving its long-term trajectory in the spotlight.
