KTM Has an Entire Year's Worth of Unsold Motorcycles Piling Up 265,000 motorcycles are just...hangin' around.

MxAddic
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12/22/2024 8:39am Edited Date/Time 12/22/2024 8:40am
I agree with you some people bleed the brand of bike they ride and if you don't have that same brand you suck! To want a...

I agree with you some people bleed the brand of bike they ride and if you don't have that same brand you suck! To want a company like KTM to fail is like wanting motorsports to fail - just ridiculous mentality  

I don't think there is any doubt one of KTM's main customers was the prestige buyer. Wanting them to fail sucks.

2
Hollywood009
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12/22/2024 8:42am

KTM still has a good product, good development, good network... Its not like they are an airplane company who's planes are crashing or a pharmaceutical company who's drugs dont work, KTM still has a good product and there is value.  KTM's issue is financial, they need to restructure and a financial savior.  Looking at their stock price and market action, I can see a lot of upside if they sort a few things out.

 

Screen Shot 2024-12-22 at 10.37.11 AM.png?VersionId=RRzcxRceDTiZHwm 

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bvm111
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12/22/2024 9:00am

what… no … i hadn’t heard that! 

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TeamGreen
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12/22/2024 9:33am
KTM still has a good product, good development, good network... Its not like they are an airplane company who's planes are crashing or a pharmaceutical company...

KTM still has a good product, good development, good network... Its not like they are an airplane company who's planes are crashing or a pharmaceutical company who's drugs dont work, KTM still has a good product and there is value.  KTM's issue is financial, they need to restructure and a financial savior.  Looking at their stock price and market action, I can see a lot of upside if they sort a few things out.

 

Screen Shot 2024-12-22 at 10.37.11 AM.png?VersionId=RRzcxRceDTiZHwm 

I’ll agree with that with one exception…

KTM’s problems are managerial of the highest order.  

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1

The Shop

12/22/2024 9:36am

I don't want KTM to fail,I'm just shocked at this situation and trying to understand how to fix it. 

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MXBen711
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12/22/2024 9:39am
I don't know if you've heard, but KTM is in some serious trouble. Aside from layoffs, insolvency hearings, MotoGP development pauses, and a...

I don't know if you've heard, but KTM is in some serious trouble. Aside from layoffs, insolvency hearings, MotoGP development pauses, and a culling of the board, it really hasn't sold all that many motorcycles over the last year. How many hasn't it sold you ask? 

How does a year's worth sound? Or to put it into actual numbers, 265,000 unsold motorcycles. Low wolf whistle...

According to the German publication Der Standard, the number came out during the company's insolvency hearings, in which creditors, stakeholders, and an insolvency judge, decided on the future of the company's restructuring plan. In these proceedings, lawyers argued that the vast majority of the issues that led to KTM's insolvency were based on management decisions, including those around overproduction. "In his presentation, lawyer Vogl also went into the causes of insolvency and also worked out a number of management errors," reads Der Standard, adding, "In 2023, sales had increased; although demand had decreased, motorcycle production was not reduced. From the resulting storage structure, the liquidity requirement increased by around 440 million euros between January 2023 and October 2024. More than 265,000 motorcycles are now in stock – that's how many are usually sold in a year."

In stock maybe, but an element will be 2026 model year that they are part way through producing. The more relevant number is unsold previous model year, of which I have heard there are between 80-100,000 globally.

2
Brad460
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12/22/2024 11:15am
jjavaman wrote:
 I can’t believe the number of people frothing at the mouth hoping for KTM to fail. I don’t understand why? There was an older guy on...

 I can’t believe the number of people frothing at the mouth hoping for KTM to fail. I don’t understand why? There was an older guy on another forum gleefully talking about how KTMaction is going to be have to start liking other bikes now. 

Here on Vitalmx (maybe I glossed over it)  not seeing folks cheering on and hoping KTM fails..Yes folks are taking shots at them ( and well deserved shots), but not an outright hope they fail.,..

I think there is definitely an irritation towards KTM that they could have gotten themselves in this situation after record sales the past several years,..where did all the damn money go! For sure we want the CEO to suffer financially…

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Coach529
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12/22/2024 11:28am

I am really curious how this will all work out. KTM is sitting on a shit ton of bikes, something like 130k units. 

If they have a firesale on those units, won't that drop the value of the 100k units sitting on US Dealership floors to well below cost?

2
TeamGreen
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12/22/2024 11:41am

Someone pm me when KTM brands are half off 🤣

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JazzyJJ
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12/22/2024 11:58am Edited Date/Time 12/22/2024 11:58am
Coach529 wrote:
I am really curious how this will all work out. KTM is sitting on a shit ton of bikes, something like 130k units. If they have a...

I am really curious how this will all work out. KTM is sitting on a shit ton of bikes, something like 130k units. 

If they have a firesale on those units, won't that drop the value of the 100k units sitting on US Dealership floors to well below cost?

Realistically, if they came out and chopped MSRP's in half(through factory rebates or whatever) it would drop the value of almost every modern dirt bike in creation, whether said bike is on a dealer floor or otherwise. 

 

4
12/22/2024 12:14pm
Coach529 wrote:
I am really curious how this will all work out. KTM is sitting on a shit ton of bikes, something like 130k units. If they have a...

I am really curious how this will all work out. KTM is sitting on a shit ton of bikes, something like 130k units. 

If they have a firesale on those units, won't that drop the value of the 100k units sitting on US Dealership floors to well below cost?

Yes it will.  The dealers have to get rebate credits on all the bikes that they already paid for.  If they factory undercuts the dealer network it could destroy it.

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MxAddic
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12/22/2024 12:36pm
Yes it will.  The dealers have to get rebate credits on all the bikes that they already paid for.  If they factory undercuts the dealer network...

Yes it will.  The dealers have to get rebate credits on all the bikes that they already paid for.  If they factory undercuts the dealer network it could destroy it.

For all Pierer's faults I don't see him letting that happen. It was already an option he passed on.

Darrin Willis
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12/22/2024 12:53pm

My question is how in fuck do they still sponsor a US sx effort.  Suppliers and employees owed money. Here Chase here's ur 150k for December. And here's ur 100k for winning A1. 

1
ChurchOfBrap
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12/22/2024 1:11pm
My question is how in fuck do they still sponsor a US sx effort.  Suppliers and employees owed money. Here Chase here's ur 150k for December...

My question is how in fuck do they still sponsor a US sx effort.  Suppliers and employees owed money. Here Chase here's ur 150k for December. And here's ur 100k for winning A1. 

That's marketing.  They are getting shit talked left and right on forums, social media, etc.    Racing is probably one of the last things they could use to strengthen their brand, which keeps taking hits left and right every single day.  If they pull out of racing completely, it's like they're giving up.

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jaun
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12/22/2024 1:24pm
I don't know if you've heard, but KTM is in some serious trouble. Aside from layoffs, insolvency hearings, MotoGP development pauses, and a...

I don't know if you've heard, but KTM is in some serious trouble. Aside from layoffs, insolvency hearings, MotoGP development pauses, and a culling of the board, it really hasn't sold all that many motorcycles over the last year. How many hasn't it sold you ask? 

How does a year's worth sound? Or to put it into actual numbers, 265,000 unsold motorcycles. Low wolf whistle...

According to the German publication Der Standard, the number came out during the company's insolvency hearings, in which creditors, stakeholders, and an insolvency judge, decided on the future of the company's restructuring plan. In these proceedings, lawyers argued that the vast majority of the issues that led to KTM's insolvency were based on management decisions, including those around overproduction. "In his presentation, lawyer Vogl also went into the causes of insolvency and also worked out a number of management errors," reads Der Standard, adding, "In 2023, sales had increased; although demand had decreased, motorcycle production was not reduced. From the resulting storage structure, the liquidity requirement increased by around 440 million euros between January 2023 and October 2024. More than 265,000 motorcycles are now in stock – that's how many are usually sold in a year."

Brent wrote:
That number of over a quarter-million un-sold KTM Group motorcycles sitting in a warehouse somewhere seems unrealistic. I'd like to see a verifiable source for their...

That number of over a quarter-million un-sold KTM Group motorcycles sitting in a warehouse somewhere seems unrealistic. I'd like to see a verifiable source for their reporting.  

They can't count bikes sitting on dealer floors, because the dealers have already purchased those bikes from KTM.

Are they counting the bikes they co produce with Bajaj? even then, that amount seems like click bait speculation to me.

 

What dealer purchases their bikes up front? 

In Australia they where made to pay for their floor stock when shit hit the fan with KTM

tek14
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12/22/2024 1:24pm
Coach529 wrote:
I am really curious how this will all work out. KTM is sitting on a shit ton of bikes, something like 130k units. If they have a...

I am really curious how this will all work out. KTM is sitting on a shit ton of bikes, something like 130k units. 

If they have a firesale on those units, won't that drop the value of the 100k units sitting on US Dealership floors to well below cost?

JazzyJJ wrote:
Realistically, if they came out and chopped MSRP's in half(through factory rebates or whatever) it would drop the value of almost every modern dirt bike in...

Realistically, if they came out and chopped MSRP's in half(through factory rebates or whatever) it would drop the value of almost every modern dirt bike in creation, whether said bike is on a dealer floor or otherwise. 

 

Their current offers are like -10% but that just takes them above bikes from Japan. I dont see that will accelerate their sale numbers. 

Nairb#70
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12/22/2024 1:35pm

Motorcycle sales and all powersports products is a numbers game, simple as that.KTM's problems are exponentially based, to the power of probably 100. Lots of concerned parties are going to pay a dear price before this is over, wether they survive or not, and a lot of those people have none of the blame.

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JazzyJJ
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12/22/2024 1:37pm

Sounds about right to me. They have to be optimistic and make it seem like things are looking up. Anyone recall how Bear Stearns tried to play off their collapse until the last second?

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lumpy790
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12/22/2024 1:41pm
TeamGreen wrote:

Someone pm me when KTM brands are half off 🤣

Its all gone to hell ever since Roger stepped down

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ChurchOfBrap
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12/22/2024 1:44pm
JazzyJJ wrote:
Sounds about right to me. They have to be optimistic and make it seem like things are looking up. Anyone recall how Bear Stearns tried to...

Sounds about right to me. They have to be optimistic and make it seem like things are looking up. Anyone recall how Bear Stearns tried to play off their collapse until the last second?

KTM has no choice but to put on a positive face.  They see everything being discussed on social media, and forums like this.  It's all negative, and like others have said in these various threads, it almost seems like many people want them to fail.  However, I personally believe that would be terrible for the industry as a whole, so hopefully they will come out of it.  But if they just stayed silent, pulled out of racing, etc then it would look like they were throwing in the towel.  Now, they may be forced to do all that stuff, guess we'll have to see how it's all played out.  

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lumpy790
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12/22/2024 1:45pm

OK I have been around this industry long enough that I remember when a friend bought a new 1975 CR250 at a really good price when Honda started blowing them out in 78 or 79

Its nothing new to the industry.

2
2
12/22/2024 1:47pm

One thing I don’t understand- my local KTM dealer had been selling KTMs for 30 years, then this year KTM demanded they spend five figures to update their showroom, or they’d lose the brand. 

The dealer said he couldn’t justify spending that much- so KTM canned him. 
Now this dealer was established and busy. 
He ran a UK leading parts mail order service as well. 
I spoke C with him and he said he wasn’t alone- there were numerous UK dealers who had the same treatment. 

Why would KTM do this if they desperately need to shift units??

 

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lumpy790
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12/22/2024 1:55pm Edited Date/Time 12/22/2024 1:56pm

IF KTM bailed and went back to the old GP team and off road the numbers would crash.

Good racers and results are advertising.

1
MXBen711
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12/22/2024 2:56pm
One thing I don’t understand- my local KTM dealer had been selling KTMs for 30 years, then this year KTM demanded they spend five figures to...

One thing I don’t understand- my local KTM dealer had been selling KTMs for 30 years, then this year KTM demanded they spend five figures to update their showroom, or they’d lose the brand. 

The dealer said he couldn’t justify spending that much- so KTM canned him. 
Now this dealer was established and busy. 
He ran a UK leading parts mail order service as well. 
I spoke C with him and he said he wasn’t alone- there were numerous UK dealers who had the same treatment. 

Why would KTM do this if they desperately need to shift units??

 

This is standard practice with any franchised dealer. Every one of them agrees to it when they sign up to be a dealer, it’s called corporate ID and it’s under showroom standards.

Prices range from £7k for Yamaha Off Road up to £200,000 for 360 franchises but it’s a thing with every main dealer. In every instance there is a payment plan and for every manufacturer there’s a 3-6 cycle for when they update logos, models etc. They aren’t always full refurbs but it is a part of their agreement to keep it up to date

3
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Brent
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12/22/2024 3:00pm
Team403 wrote:
Your avg broke dick dirt bike purchaser can’t afford a $500/mo DB payment plus a $800/mo F-150 to haul it in. And everything else that is...

Your avg broke dick dirt bike purchaser can’t afford a $500/mo DB payment plus a $800/mo F-150 to haul it in. And everything else that is sky high right now.  All toys are hurting…

all true

 

3
12/22/2024 3:07pm
My question is how in fuck do they still sponsor a US sx effort.  Suppliers and employees owed money. Here Chase here's ur 150k for December...

My question is how in fuck do they still sponsor a US sx effort.  Suppliers and employees owed money. Here Chase here's ur 150k for December. And here's ur 100k for winning A1. 

I don’t understand how it all works but KTM North America seems to be ok for the time being from what folks have said. 

NicNak
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12/22/2024 3:16pm
My question is how in fuck do they still sponsor a US sx effort.  Suppliers and employees owed money. Here Chase here's ur 150k for December...

My question is how in fuck do they still sponsor a US sx effort.  Suppliers and employees owed money. Here Chase here's ur 150k for December. And here's ur 100k for winning A1. 

I don’t understand how it all works but KTM North America seems to be ok for the time being from what folks have said. 

I’d say 150k is way low. $3-4 mill salary from KTM. 

4
j368
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Tulsa, OK, USA
12/22/2024 3:20pm
My question is how in fuck do they still sponsor a US sx effort.  Suppliers and employees owed money. Here Chase here's ur 150k for December...

My question is how in fuck do they still sponsor a US sx effort.  Suppliers and employees owed money. Here Chase here's ur 150k for December. And here's ur 100k for winning A1. 

I don’t understand how it all works but KTM North America seems to be ok for the time being from what folks have said. 

NicNak wrote:

I’d say 150k is way low. $3-4 mill salary from KTM. 

He was saying $150K for the month, not year. 

4

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