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If the money from KTM is turned off, which I have a feeling is not to far fetched, who in their right mind would fund a racing effort for a basically defunct bike brand?
Come on guys, did you read the article? I even posted a summary on the previous page, seriously, it's all in there.
Great article, but you know he is referring to the MotoGP program not US motocross and supercross right? Have you seen it addressed what KTM North America would do with its racing programs if the administrator cuts off funding from the mother ship? I don't think many here really care what happens with MotoGP.
Yup, saw it. Don't believe it. You stop paying employees, but the sporting/racing side is just fine....mmm, yeah. If true, someone at KTM has a vision problem...because they have their head up their rear.
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130,000 units in stock, that's going to have a major impact on the dirt bike (and even street bike market in Europe), keeping the market down and impacting sales of new 2025-2026 motorcycle for the Japanese and other small Euro brands. That's going to be a lot of bikes discounted. Not sure if the 130,000 units referred in all new articles are in KTM Group warehouses or include those at dealerships.
130,000 in the warehouse. The ones the dealers are sitting on was estimated at 100,000.
Huge.
So 230,000 total unsold bikes?
Wowzers.
You're right the article is about MotoGP because that's what DE writes about and because that's by far the main racing cost for PMG.
All of KTM racing, including SMX, is set up under different entity so as he writes, theoretically they are unaffected by the current process involving 3 other PMG entities.
My guess, which is not worth much, is that if the MotoGP program survives, SMX (and MXGP) will be fine cause it's just a drop in the bucket compared to the 70 million MotoGP operation. And their reputation would take a much bigger hit if they were to drop these, unlike hard enduro for instance.
Unpopular opinion.... the Hard Enduro and Off Road Race Teams sell more bikes than the Moto race teams. For probably 1/4 of the budget.
Less budget for sure, although I've always thought the "win on Sunday, sell on Monday" was more applicable to the MX crowd than off-road crowd.
Like, most MX riders would also follow the sport (SMX, MXGP or national championship) but off-road riders would care less about pro competition and be less influenced by this kind of marketing? Just a feel, hard to know for sure.
Unless the other PMG’’s entities have no cash flow to fund it. It’s not like Feld is paying KTM to show up on Sat night. Other than sponsorship contributions ( which I hear are around 30%) how does KTM racing generate REV? Honest question.
An opinion that is undermined by a history in which KTM and Swedish Husky were fairly dominant in off road and Enduro for decades, but you didn't start seeing grids full of pumpkins in America until they won on the track.
Yeah, that's fair. The big push into the Moto side definitely brought the bikes up another level which has led to a lot more people riding them.
Yeah they don't generate much revenue, although they've mentioned lately that GP support classes (Moto3, Moto2 and Red Bull rookies) should bring revenue (implying that's not the case), probably just leasing/selling bikes and parts to teams instead of funding them.
Your point about cash flow is why DE wrote racing was theoretically not affected.
We should know more about this in a matter of hours.
It is entirely possible KTM NA is making money. You don't shut down a division that is making money because the parent company is losing money. What sometimes happens is the head of the division that is making money gets moved up to save the parent company. I don't think that will happen here but it happens in the auto industry.
https://www.akv.at/akv-newsroom/presse/ktm-ag-information-1-tagsatzung-insolvenzverfahren
Check that out and translate it.
This is looking really bad and just like i expected.
Reorganization measures:
Payments to subsidiaries of the KTM Group that are not essential to operations have been stopped. As a result, several subsequent insolvencies of other KTM companies are now expected. The two other KTM companies that are already insolvent are essential to the continued operation of the KTM Group and are being financially supported by KTM AG by continuing to purchase the services and goods from them.
In order to reduce costs, the withdrawal from MotoGP Moto3/Moto2 is planned.
In order to reduce production costs, the possibilities of (partial) relocation of production are being examined.
Production is to be halted until after the restructuring plan has been approved.
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Pit Row
From KTM Press Room
RISING THROUGH ADVERSITY: KTM PLOTS A PATH TO THE FUTURE AND TO MORE VICTORY
It is no secret that KTM AG is navigating a shifting economic landscape. However, as our READY TO RACE mantra suggests, we are embracing this moment to realign, refuel, and reinvigorate. KTM remains fully committed to delivering exceptional experiences to our current and future customers. We will continue to thrill and find our way to the top of the podium again.
Racing is where we show our brand, our engineering and our passion for the chase. Over the past year, our motorsport teams continued to achieve greatness. We started the season with a staggering 341 FIM World Championship Titles. The globe-trotting calendars involved more than 1,480 race starts and brought us 246 podiums and 150 wins across various disciplines. Of course, there were hardships and injuries—these go with the turf—but KTM impressively added 11 more hard-fought titles to the record.
Off the racing line, the KTM brand has also been extremely active this year. The brand unveiled 59 new models, hosted three international media launches with 152 media partners in attendance, successfully pulled off three customer events with 283 participants, and returned to EICMA, the world’s largest motorcycle show, with a massive 1,635 m² booth along with 17 new KTM products.
There has been a strong push behind these new motorcycles, as well as efforts to ensure we maintain momentum in the right areas. KTM is applying the same forward-thinking approach during this restructuring phase. Our goal over the next 90 days is to stabilize the business while setting the foundation for sustained growth and success.
Throughout this period, KTM guarantees the continuation of motorcycles being delivered through our Authorized KTM Dealer network. The same goes for our spare parts, technical accessories, customer service support and warranties which remain unchanged, ensuring ongoing and unwavering support throughout this period.
The work and the desire for the latest edgy, extreme and adventurous motorcycles goes on. KTM is preparing the launch of a brace of highly anticipated models, which will be in dealer showrooms in the first quarter of 2025. This again shows our pledge to remain as one of Europe’s leading motorcycle manufacturer well into the future.
Geezuz...that is really bad.
Danm shame they didn’t check with the administrator first before making the video.
I can see them dropping factory supported teams in Moto3 and Moto2 to go exclusively towards private teams paying for the bikes, parts and technicians thus turning expense into revenue.
Also worth noting there's no date for this "planned withdrawal" that KTM is not endorsing at all.
I still feel the millions incurred in Dorna fine in case of early exit mean it's not worth getting out of MotoGP before the end of current contract, at the end of 2026 season. And you'll have to remove Pierer and change the locks before that happens (which they might well do)!
"Payments to subsidiaries of the KTM Group that are not essential to operations have been stopped. As a result, several subsequent insolvencies of other KTM companies are now expected."
This stands out to me. Do they deem the KTM Factory racing company as essential to operations? Or parts of it? If not, shit is about to hit the fan.
Nice words but KTM is in no position to guarantee anything to anyone.
All the decisions will be made by others.
(FWIW I expect the brand to survive, but in very different form).
The worse it gets. the better it gets. Stefan is a class act. Sorry Bro, you are not here to stay.
So, what happens to the Husky and Gas Gas SX/MX teams? These are much smaller teams and certainly have to be on the chopping block as non-essential. This whole thing looks like a complete sh*t show domino effect waiting to happen with various teams at the moment.
There are too many KTM threads, read this article https://motomatters.com/news/2024/12/20/ktm_can_continue_in_current_form_700.html
Situation is highly volatile but there are also positive developments, laying off 200 people less than forecast, and they've found potential investors, including Bajaj, willing to part with 700 million.
Plus creditors getting 14% of their money if KTM goes bankrupt is a pretty big incitement to agree to the restructuring plan hoping to get 30% in 2 years.
We'll know more at the next hearing in one month.
"Rising Stronger" - Stefan Pierer
Maybe Troy Lee had a crystal ball.
Here is something I don’t understand- I keep hearing about fines if they don’t race - sponsorship obligations etc . If you file these folks essentially get in line. Why would you continue to shell out 70M for fear of losing what 10M in fines? Seems like if shit is really hitting the fan you go all in on a hard reset. Bring in new leadership and salvage what’s left. I guess what I am saying why would you risk the whole ship to race? Surely the general public would have some empathy for trying navigate troubled waters - cut backs are expected. Where am I off?
I don't beleive your off or wrong! The fact that Pierre did not attend the meeting speaks volumes!!
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