Is KTM on the Brink of Withdrawal from MotoGP?

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Last month my mate bought a new 2024 KTM 1290 super adventure, they were on offer at around £14000. His reasoned it was a bargain because the new model 2025 1390 is going to start at around £21000. I think he’ll be allright at that price but I can see the 2025s struggling to find homes unless they’re discounted a lot.
So yes Warthog1 I can see this “self administration “ turning into a self fulfilling prophecy.
 
You wonder if the tales of insolvency may become a bit of a feedback loop :(
Those considering a bike purchase may look elsewhere if it seems the company is about to fold. May strangle sales further.
I was thinking the same thing. I don't like to pile on when there are rumours in case they become a self-fulfilling prophecy. On the other hand there are companies that are in deep trouble, but outright lie that they are not. *cough* Northern Rock *cough*
 
TBH I don’t feel any sympathy for KTM. They have treated their dealers like .... for years with constant demands to upgrade their premises and to accept KTMs crazy stocking levels. They’re a ruthless company that have seen off many decent marques in the dirt bike world so live by the sword etc, etc!

Annoying Twit,
I misread your above post slightly to read Black Rock and thought ooooh, this is controversial! 🤣
 
Suspect they will change the way they do things to bring back profitability.

For example a new strategy that reduces stock levels. Close a more costly factory or 3. Open a factory in a lower cost country
 
TBH I don’t feel any sympathy for KTM. They have treated their dealers like .... for years with constant demands to upgrade their premises and to accept KTMs crazy stocking levels. They’re a ruthless company that have seen off many decent marques in the dirt bike world so live by the sword etc, etc!

Annoying Twit,
I misread your above post slightly to read Black Rock and thought ooooh, this is controversial! 🤣
Lots of things I hadn't heard about today. Black Rock, and Charlie and Ewan being turned down by KTM both new to me.

Northern Rock was in 2007 or thereabouts. I remember seeing a queue of savers trying to get their money out of the bank.
 
This article says that KTM's debts might be as high as 3 billion euros. It also says that KTM's financial woes have seen brands such as Gasgas and Husqvarna disappearing from the grid. But, I though Gas Gas was still there in Moto3 and MotoGP at least. And I can't see any evidence that Husqvarna is disappearing from Moto3. Unless there are announcements I have missed. (Entire possible.)
 
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.
 

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Local KTM dealers posting huge discounts on new 2022, 2023 and 2024 KTM RC390s today in the Toronto area where I live, wow up to $ 2,000 dollars off on a new bike. You can buy a new one for the equivalent of $ 3900 US here, not sure how that compares to prices in other parts of the world but that is really cheap here.

With over 100,000 new unsold KTM motorcycles for sale around the globe I suspect we'll see a big fire sale going forward to get rid of all the inventory. My worry would be getting parts in the future if KTM goes belly up !
 
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I just noticed too there are more than the usual amount of used RC390s for sale, that is a bad sign if people are starting to bail out from the brand.
Or maybe they’re looking to get out of an older bike and get a new discounted model?
 
So first reply in 5 years - but I looked on Bikesales today and there is new KTM’s year model 2022 still for sale. And demonstrators with just a few k’s on them from 2021.

They haven’t really made anything new or innovative now for years.

The rest of the industry have caught up with KTM, in the 2010s they were very innovative putting electric start on MX bikes, fuel injection, launch control, connectivity with your phone, thats stuff that other brands are just now getting to, (Suzuki's are still kick start!!!).

I was at the track saturday, and half the bikes were KTMs, and they are generally more expensive then comparable bikes from other brands.
 
Beat me to it Warthog. That ain't good.
I mean we have the engine freeze but what about the rest of the bike?

Wonder if a rival factory will try and poach Acosta.
 
In my opinion if KTM stays afloat it will be a shell of it's former self, I believe the company as we know it is doomed, I would not be surprised if the company is broken up in to pieces and each sold off to the highest bidder.

Potentially a great opportunity for either Suzuki, BMW, or CFMoto to pick up the MotoGP project and move it forward.

In the meantime I expect to see a fire sale on the unsold 100,000 bikes, already happening here in the Toronto area where I live. KTM does not have a lot of dealers in Canada, I suspect it will have a lot less in the near future given the circumstances. There are so many great bikes for sale from many manufacturers, KTM is strong in the MX/Offroad area but up against it in anything else from what I see.

KTM ? No thanks.
 
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