KTM had 130,000 motorcycles in stock when it went bankrupt; To sell off stocks, production in the Innviertel is now at a standstill until March – two facts about the motorcycle manufacturer that are not reassuring. How are the dealers doing? We asked Philipp Watzinger, who runs a KTM and Husqvarna shop in Linz-Urfahr.
“It is only the first phase in a 90-day restructuring process, but it gives us the opportunity to fully commit to our employees, to our suppliers and dealers, so that this company can survive in the long term.” with Gottfried Neumeister, the co-director of KTM AG, after it became clear that all three of the motorcycle manufacturer’s companies that had fallen into bankruptcy had been allowed to continue their activities.
Production is scheduled to restart in March
KTM AG, KTM Components GmbH and KTM Forschungs & Development GmbH are in dire financial straits and are sitting on a mountain of debt worth billions. And the warehouses are also full: there are said to be 130,000 motorcycles in stock, the company announced at the end of November. Production then continued for another two weeks before the motorcycle assembly was sent on an early Christmas holiday. The intention is that this will only start up again in one shift in March.
By 2023, two-thirds of motorcycles were sold outside Europe
Will the overcrowded warehouses be half sold out? Anyone who dares to look outside the front door will doubt this. After all, who buys a motorcycle in Austria in winter? But the fact is: KTM is a global company and in 2023 it sold about two-thirds of its motorcycles outside Europe. North America, India, South America, Asia and Australia were cited as important markets by the Mattighofen-based company.
In Austria, on the other hand, retailers also use winter to take a break. For example, KTM Braumandl GmbH in Thalheim near Wels is closed from January 6 to 20 due to inventory and company holidays. The company holiday at Watzinger-Motorrad GmbH on Freistädter Strasse in Linz-Urfahr is lasting longer: the store was open for the last time this year last Friday and will open again on February 3.
“In the summer months our activities run at full speed. That is why we use the quieter winter time for a well-deserved break,” explains Philipp Watzinger. As a seasonal business, experience shows that the demand for motorcycles, accessories, spare parts and the like is very low in winter.
“No disadvantages or limitations”
When submitting the restructuring applications, KTM emphasized that the sales companies were not affected by the bankruptcy. “KTM’s support for us as a dealer works completely normally and without any restrictions. All deliveries of spare parts, accessories and other products are made on time and in full,” says Watzinger. And further: “There are no disadvantages or restrictions for my employees and customers.”
The first 2025 models have already been delivered
Even the first motorcycle models from 2025 have already been delivered. The CEO of Watzinger-Motorrad GmbH: “Despite the current challenging situation at KTM, I look to the future with optimism and confidence.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
