Is KTM on the Brink of Withdrawal from MotoGP?
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He will race as long as he is competitive, and has good chance of podiums
You are way optimistic saying RBR a midfield team. W/O Max they will be just be in the last 2-3 spots aiming to fight with Sauber
It seems like Mark Mateschitz is willing to invest and have a larger stake in KTM but Pierer is denying this
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Certainly in the Toronto area where I live the struggles of KTM have been evident for a few years already.
My prediction is that KTM will emerge in a few years either as a shell of it's former self, or be broken up and sold off to someone else. Trying to build bikes to compete against the Asians on a cost basis is pretty much futile now, no wonder many smaller bikes of most brands are built in Asia (including many KTM bikes).
Given the perils that KTM faces I would be reluctant to buy any of their bikes now until the dust settles.
My prediction is that KTM will emerge in a few years either as a shell of it's former self, or be broken up and sold off to someone else. Trying to build bikes to compete against the Asians on a cost basis is pretty much futile now, no wonder many smaller bikes of most brands are built in Asia (including many KTM bikes).
Given the perils that KTM faces I would be reluctant to buy any of their bikes now until the dust settles.
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Perhaps BMW or Suzuki could take advantage of the situation if it comes to that !
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There is value at KTM and the company has assets. KTM like the rest of the industry saw a bump in sales during and shortly following covid, but they also had a supply problem. So they invested heavily in their supply infrastructure, shifting a lot of their manufacturing to Asia. The problem was that the industry as a whole has slowed down, and they are not going to be able to see a return on those investments as fast as they promised investors.
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I read somewhere that for 2024 KTM upgraded the engine but kept the 2023 frame. Perhaps that was cost cutting?
Or CFMoto ?
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I dont think this will effect their GP program because they have sponsors and partners as well as customers. They also have the ability to make anything they want from raw materials, they have the equipment and engineers on staff, so I dont see this costing them much in terms of development.
The costs are high, but the overriding issue, imo, is that the racing divisions continue to soak the shareholders for money, using "marketing operations" as a nebulous justification. KTM's problem doesn't seem to be lack of marketing. Looks like they've taken a variety of ill-advised strategic risks, and mixed them with faulty manufacturing operations. In their defense, they probably didn't have covid on their bingo card.
The old days of manufacturing bloodsport are over. It was viable when the motorcycling/car companies were closely-held, family operations and ego, dignity and pride were on the line. Who cares what Count Agusta or Soichiro Honda want to do with their spare millions. MotoGP? Why not? Today, the manufacturers capable of sustaining gratitous motorsport spending are no longer interested in gratitous spending.
Modern prototype motorsport is an answer to the following question: Who can build a competitive rapid-prototype boutique manufacturing operation based upon the sanctioning body's specifications using a specified annual commercial payment? MotoGP is not modern. WSBK is trying to modernize. Maybe the commercial payments are not high enough for motorcycle racing to modernize. Maybe that's where Liberty steps in.
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Yes I am no economist.
It just seems to me, given the declining sales of sports bikes, and the huge expense of the four stroke era, it is pricing manufacturers out, as you seem to indicate in a more structured way.
The money all of that aero andvride height control has added must be substantial. Added to the already more expensive 4 stroke engines searching for a higher rev limit. Carbon frames and swingarms, carbon discs. Where is the justification in terms of improved sales? What is the justification from a shareholder perspective? Is there one? Dunno, I am a bit of an economic dunce.
Regardless, it would be very interesting to see an estimate of what it has cost Ducati to get where they are. An absolute shedload I reckon.
It just seems to me, given the declining sales of sports bikes, and the huge expense of the four stroke era, it is pricing manufacturers out, as you seem to indicate in a more structured way.
The money all of that aero andvride height control has added must be substantial. Added to the already more expensive 4 stroke engines searching for a higher rev limit. Carbon frames and swingarms, carbon discs. Where is the justification in terms of improved sales? What is the justification from a shareholder perspective? Is there one? Dunno, I am a bit of an economic dunce.
Regardless, it would be very interesting to see an estimate of what it has cost Ducati to get where they are. An absolute shedload I reckon.
I think at some point the teams and manufacturers are going to start expecting to at least break even doing the series. Obviously none of us a privy to the financials but given how much the series is worth and that the manufacturers etc make the product possible are going to want a piece of the pie (if they don't already have it), to significantly subsidize their racing efforts so it is closer to a 0 cost sum. If the new owners want more manufacturers etc significantly lowering the cost of racing for the factories could go a long way to ensuring their participation.
Someone here will be better situated to know than myself but I believe Ferrari get a significant kickback from the series (on top of their merchandise which is where they make most of their money IIRC) to make it financially viable.
Someone here will be better situated to know than myself but I believe Ferrari get a significant kickback from the series (on top of their merchandise which is where they make most of their money IIRC) to make it financially viable.
