Is KTM on the Brink of Withdrawal from MotoGP?

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Well, everyone also thought Saab and Volvo were too big to fail, but Sweden let the former fail and approved the sale of the latter to the Chinese.

I could see KTM going either way. In my opinion, Austria is leaning towards private intervention (Western), with government bailout as a fallback, but it's possible that KTM doesn't have a way forward. The company has been poorly managed (understatement). Without new management Austria doesn't have a way forward.

When the US companies were bailed out, the obvious plan was to transition from maximum car transportation for US citizens to maximum alternative energy as part of a neo-cold-war with Russia. We even postponed/cancelled Keystone XL to pry Venezuela from their sphere of influence. What's the obvious plan for KTM? A dirtbike in every garage? Overpriced electric bicycles for every European?

I find it interesting, and a bit depressing, that the Race Ready manufacturer is going down in flames. Shows the state of 2-wheeled motorsport--prospector's claim full of mostly fools gold. The FIM and manufacturers are stuck in the dark ages.


There is no market for sports bikes anymore. Traffic congestion, drivers on mobile phones, speed cameras, radar speed detection. There basically is no point owning one for public road use. They are simply too fast. The market has collapsed and nobody is buying them. What is the point of spending millions to show you make the best race bike if nobody wants to buy a fast road bike you are showing you have the capacity to design and produce?
Fools gold indeed. This series has rules that allow bikes that are just too damn expensive. :(
 
Well, everyone also thought Saab and Volvo were too big to fail, but Sweden let the former fail and approved the sale of the latter to the Chinese.
And Sweden didn't descend into a 3rd world country because of it.
When the US companies were bailed out, the obvious plan was to transition from maximum car transportation for US citizens to maximum alternative energy as part of a neo-cold-war with Russia. We even postponed/cancelled Keystone XL to pry Venezuela from their sphere of influence.
I did some research and was wrong, Ford were not bailed out. GM and Chrysler were. I dont totally agree with you statement regarding the plan for bail outs. GM and Chrysler filed for Chalter 11 Bankruptcy and GM especially would have likely been fine with simply cutting back and liquidating their assets. Chrysler were the real ones in trouble and should have been allowed to fail or be bought out, which is ultimately what has not happened under the failing Stellantis Group.

The bailout was mostly political theatre in my opinion, just lake calling the CEO's in front of congress. It simply gave the impression to the people that the government were ultimately still in control, and that they cared, which we know they don't.

As I've stated before, the people that caused this, are not going to suffer one bit.

I find it interesting, and a bit depressing, that the Race Ready manufacturer is going down in flames. Shows the state of 2-wheeled motorsport--prospector's claim full of mostly fools gold. The FIM and manufacturers are stuck in the dark ages.
Which is another reason why I think the Govt bailout is inevitable.
 
There is no market for sports bikes anymore. Traffic congestion, drivers on mobile phones, speed cameras, radar speed detection. There basically is no point owning one for public road use. They are simply too fast. The market has collapsed and nobody is buying them. What is the point of spending millions to show you make the best race bike if nobody wants to buy a fast road bike you are showing you have the capacity to design and produce?
Fools gold indeed. This series has rules that allow bikes that are just too damn expensive. :(
Indeed. My dad and brother sold all their bikes in the last 5 years for that reason. Neither has interest in track days so what can you use them for? It would be like buying an F1 car for street use.
 
I think that is inevitable, no matter what.

Remember the 'Too Big to fail' situation where to US government bailed out the banks and the big 3 auto makers in 2008? It's BS in my opinion. Though should be allowed to fail and the governments should bail out the workers, not the corporations. What is Stefan Pierer losing in all of this? It's always the same, Privatise the profits, socialise the losses.
Agreed 100% on the bailout BS. You can’t love capitalism when things are going well and depend on socialism when they go south. It’s the old “Rules for thee, not for me.”

It sounds like KTM is finding some solution to their debt problem so I doubt they will go under as a company. But I also doubt they will continue in MotoGP.

Hoping to be wrong!
 
There is no market for sports bikes anymore. Traffic congestion, drivers on mobile phones, speed cameras, radar speed detection. There basically is no point owning one for public road use. They are simply too fast. The market has collapsed and nobody is buying them. What is the point of spending millions to show you make the best race bike if nobody wants to buy a fast road bike you are showing you have the capacity to design and produce?

Interesting comment indeed, so let me ask: What kind of 2 wheeled vehicle would you buy these days instead ?

In my case I would like to buy a small displacement Scooter type vehicle to ride around town, with racks/bags/boxes to hold things like groceries. Something like a Honda Ruckus but bigger, with enough power to keep up with traffic and the occasional jaunt on the highway. I want more utilitarian rather than style, something rugged/manly/powerful that I can use as a workhorse for my daily needs with room to take my small dog too.

A 2 wheeled Jeep so to speak.
 
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There is no market for sports bikes anymore. Traffic congestion, drivers on mobile phones, speed cameras, radar speed detection. There basically is no point owning one for public road use. They are simply too fast. The market has collapsed and nobody is buying them. What is the point of spending millions to show you make the best race bike if nobody wants to buy a fast road bike you are showing you have the capacity to design and produce?
Fools gold indeed. This series has rules that allow bikes that are just too damn expensive. :(

I agree, but there is a glimmer of hope. The roads will not become safer or more friendly, but bike performance is variable, and emissions regs are changing the way sportbikes make power. We are transitioning back to useable power, similar to the old 100hp 750cc superbikes. Maybe if consumers have a bit of spare change in their pocketbooks, they might choose to torque themselves around town on the new Supersport class (Yamaha R9, Ducati V2 890, KTM RC990).

The other glimmer of hope is that someone fixes motorcycle racing to make it interesting and profitable. Manufacturers will hopefully use a rejuvenated sport to make money (or at least break even) at the track, rather than draining the corporate coffers for "marketing activities".

We'll see. Might just be prolonging the inevitable.
 
I did some research and was wrong, Ford were not bailed out. GM and Chrysler were. I dont totally agree with you statement regarding the plan for bail outs. GM and Chrysler filed for Chalter 11 Bankruptcy and GM especially would have likely been fine with simply cutting back and liquidating their assets. Chrysler were the real ones in trouble and should have been allowed to fail or be bought out, which is ultimately what has not happened under the failing Stellantis Group.

The bailout was mostly political theatre in my opinion, just lake calling the CEO's in front of congress. It simply gave the impression to the people that the government were ultimately still in control, and that they cared, which we know they don't.

You were right the first time. Ford was bailed out, too. The distinction is that GM and Chrysler were bailed out through TARP (Toxic Asset Relief Program). Ford was bailed out with DOE grants and loans, including bridging financing through the DOE. Ford claimed they were never bailed out. They were sued and stopped making the claim publicly, but I suspect they never stopped paying influencers. Ford had half the pension obligations of GM. That's what saved Ford and sank GM.

In my opinion, the bailout was more than political theater. Prior to the GFC, American car companies targeted higher SAAR and sales. Used cars were cheap--practically litter back then. The Obama admin created a program to crush used cars, and they required the US manufacturers to develop hybrids and EV's. SAAR today is lower than in 1986.....when the US population was 100M fewer people. We burn 2m fewer barrels per day than 20 years ago. The target of the car industry is to suppress oil consumption. If fewer people have cars, it just helps reduce oil consumption even more.

It's unclear if KTM will be bailed out, but there are no global macroeconomic forces in play. That doesn't mean Austria won't make a move, but KTM's new heading is not immediately obvious. Even less clear if KTM will continue in MotoGP, if they are bailed out. Unless disposable incomes rise in the developed world (possible), it just seems like KTM would be bailout after bailout. I don't see them usurping a Japanese manufacturer in any major market, nor can I imagine them dethroning Ducati, especially with MV Agusta gone. We'll see.
 
I am a dealer, and yes the sport bike market is dead and has been for 15 years now. But its not because they are too fast, riding one is dangerous, and I still sell plenty of other types of bikes. The sport bike market died for two reasons: 1. They priced themselves out of the market. 2. the used market is over saturated with sport bikes.

Price: In 2002 a new GSX600R was $5999, and all you needed was proof of income and $200 and you could ride it home. Most buyers were in their early 20s and everyone go approved for financing even if they had part time work and earned minimum wage. Today a new GSX600R $12K plus fees, and the financial approval process is much more complicated. To be approved you need a decent playing job, good credit score, and good credit history, and most 20 year olds do not meet the requirements.

Saturated market: Why buy a new bike when you could buy a used one at a fraction of the cost? Not much has really changed in the last 20 years in sport bikes, and they loose their value so fast. Its hard to justify a new bike over one that is a couple years older for half the price, and usually tastefully modded.
 
Interesting comment indeed, so let me ask: What kind of 2 wheeled vehicle would you buy these days instead ?

In my case I would like to buy a small displacement Scooter type vehicle to ride around town, with racks/bags/boxes to hold things like groceries. Something like a Honda Ruckus but bigger, with enough power to keep up with traffic and the occasional jaunt on the highway. I want more utilitarian rather than style, something rugged/manly/powerful that I can use as a workhorse for my daily needs with room to take my small dog too.

A 2 wheeled Jeep so to speak.
Motocross and Supermotard bikes are the big thing now from my understanding. Even Ducati have recently gotten into the market.


You were right the first time. Ford was bailed out, too. The distinction is that GM and Chrysler were bailed out through TARP (Toxic Asset Relief Program). Ford was bailed out with DOE grants and loans, including bridging financing through the DOE. Ford claimed they were never bailed out. They were sued and stopped making the claim publicly, but I suspect they never stopped paying influencers. Ford had half the pension obligations of GM. That's what saved Ford and sank GM.
I didn't know that, thanks for the info.
In my opinion, the bailout was more than political theater. Prior to the GFC, American car companies targeted higher SAAR and sales. Used cars were cheap--practically litter back then. The Obama admin created a program to crush used cars, and they required the US manufacturers to develop hybrids and EV's. SAAR today is lower than in 1986.....when the US population was 100M fewer people. We burn 2m fewer barrels per day than 20 years ago. The target of the car industry is to suppress oil consumption. If fewer people have cars, it just helps reduce oil consumption even more.
It's partly why we are where we are today. Companies are in the red because they've had to fund EV development. The COVID (and some time after) boom was the golden goose in that regard, as it has allowed them to inflate prices of cars dramatically. My friend bought an F150 hybrid in 2021. That same truck is now $20k more in 2025.

Car companies have also moved to the profit based model, over the volume based model. Which is why many common low end sedans (Think Ford Fiesta, Ford Fusion) have been eliminated from the US market.
It's unclear if KTM will be bailed out, but there are no global macroeconomic forces in play. That doesn't mean Austria won't make a move, but KTM's new heading is not immediately obvious. Even less clear if KTM will continue in MotoGP, if they are bailed out. Unless disposable incomes rise in the developed world (possible), it just seems like KTM would be bailout after bailout. I don't see them usurping a Japanese manufacturer in any major market, nor can I imagine them dethroning Ducati, especially with MV Agusta gone. We'll see.
I can't see how they can continue in MotoGP. They don't have the money themselves to do it, and if they get bailed out by the government, I can't see retaining the racing program would go down well.
I dont see disposable incomes rising anytime soon with the COL crisis personally. Disposable income in the US has had a 47% raise in the USA in the last 25 years which is roughly in line with US hourly earnings. In that time:

Housing has increased over 100%
Food has increaces nearly 100%
Hospital services have gone up 250%
Childcare has gone up 140%

If anything, disposable income is going DOWN. The Ford Mustang, for years the best selling sportscar, recorded it's first decline in sales last year even, even falling behind the electric Mustang. Some of this is likely because a base GT V8 is $50k, with the convertible being $60k. The market is starting to correct somewhat because people can't, or won't pay that much.


Saturated market: Why buy a new bike when you could buy a used one at a fraction of the cost? Not much has really changed in the last 20 years in sport bikes, and they loose their value so fast. Its hard to justify a new bike over one that is a couple years older for half the price, and usually tastefully modded.
Market saturation is the key thing here. And Arguably, sports bike are a somewhat niche market.
 
Interesting comment indeed, so let me ask: What kind of 2 wheeled vehicle would you buy these days instead ?

In my case I would like to buy a small displacement Scooter type vehicle to ride around town, with racks/bags/boxes to hold things like groceries. Something like a Honda Ruckus but bigger, with enough power to keep up with traffic and the occasional jaunt on the highway. I want more utilitarian rather than style, something rugged/manly/powerful that I can use as a workhorse for my daily needs with room to take my small dog too.

A 2 wheeled Jeep so to speak.


Dunno. Last bike I had was a CBR900 fireblade years ago.
I am no longer interested in one like that. Too old for any type of sportbike now. Some type of cruiser maybe.
Basically a finite amount of money and trying to knock out the house loan before I retire.
Nothing realistically.
 
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