Battle for the future
From production to MotoGP: where KTM could save money
On the one hand, fresh capital is to flow into the company through investors, on the other hand, savings have to be made wherever possible - in the battle for the future of motorcycle manufacturer KTM, which has slipped into insolvency, everything is being turned around. The extension of the production stop is being discussed. The focus is also on expenditure for research and development and participation in the Road World Championship.
For years, the motorcycle manufacturer has been preaching that race victories achieved at the weekend are reflected in the sales figures for the following days. The motto "ready to race" fits perfectly into the world of the powerful bikes that are manufactured in Mattighofen (Upper Austria). KTM is an integral part of various racing series - and is also a fixed starter in the 2025 Dakar Rally starting on January 3, even if only three riders will be sent into the desert for the multi-day race this time.
Dakar Rally, Motocross World Championship, MotoGP and thus the premier league in the Road World Championship - what will be left of them in the future?
Road World Championship participation to cost 46 million euros per year
As soon as KTM's financial difficulties became known, the exit from MotoGP was first rumored. Now the recommendations of consultants are also fueling these rumors. 46 million per year is the cost of competing in the Road World Championship alone, and the company is contractually bound to participate in MotoGP, the premier class, until the end of 2026. An earlier withdrawal would be associated with fines.
At the moment, withdrawing from MotoGP is nothing more than a topic of discussion. The motto "nothing is fixed" applies here just as it does to the possibility of extending the production stop until the end of March. The status quo remains unchanged: Motorcycle production is scheduled to resume at the beginning of March - and thus only a few days after the vote on the restructuring plan at the regional court in Ried im Innkreis.
Research and development partly relocated to Asia
Where else is there potential for savings, according to consultants? In addition to the multi-brand strategy with KTM, Husqvarna and GasGas, which ties up resources and money, there are also the apparently comparatively high costs for research and development, whereby KTM already took initial measures at the beginning of December 2023 and began to relocate parts of research and development to Asia. The reason given at the time: the higher development speed in other countries and also significant cost savings.
Debts in the billions
On November 29, insolvency proceedings were opened for KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklungs GmbH. All three proceedings are being conducted as restructuring proceedings with self-administration. According to the company, liabilities amounted to around two billion euros at the end of November.
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