On the one hand, fresh capital must flow into the company through investors, but on the other hand, savings must be made where possible – in the battle for the future of the bankrupt motorcycle manufacturer KTM, everything is being overhauled. all around. There is talk of extending the production stop. In addition, the focus is on expenditure on research and development and participation in the Cycling World Championships.
The motorcycle manufacturer has been preaching for years that race victories achieved during the weekend are reflected in the sales figures of the following days. The motto ‘ready to race’ fits perfectly into the world of high-performance bicycles produced in Mattighofen (Upper Austria). KTM is an integral part of a wide range of racing series – and is also a regular starter in the 2025 Dakar Rally, which starts on January 3, even though this time only three drivers will be sent to the desert for the multi-day race.
Dakar Rally, Motocross World Championship, MotoGP and thus the premier league in the road world championship – what will be left of this in the future?
Participation in the Cycling World Championships is expected to cost 46 million euros per year
As soon as KTM’s financial problems became known, rumors of its departure from MotoGP were first circulated. Now the recommendations of consultants are also fueling these rumors. Performing in the Road World Championship alone reportedly costs 46 million euros per year, and you are contractually obliged to participate in the MotoGP, the premier class, until the end of 2026. An earlier withdrawal would result in fines.
At the moment, withdrawing from MotoGP is nothing more than a topic of discussion. The motto ‘nothing is set in stone’ applies here and the option to extend the production stop until the end of March. At the moment, the following still applies: Motorcycle production is expected to resume in early March – just a few days after the vote on the restructuring plan at the regional court of Ried im Innkreis.
Some of the research and development was moved to Asia
Where do advisors think there are other savings potentials? In addition to the multi-brand strategy with KTM, Husqvarna and GasGas, which ties up resources and money, there are also the apparently relatively high costs for research and development, with KTM having already taken the first measures in early December 2023 and parts of the research and development in Asia started to shift. The reason at the time: the higher development speed in other countries and also significant cost savings.
Billions of dollars in debt
On November 29, insolvency proceedings were opened for KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklung GmbH. All three proceedings are conducted as self-managed restructuring proceedings. According to the company, debts amounted to around two billion euros at the end of November.
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.
