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Only $10 for all 2026 SX, MX, and SMX series.
Yet the factory workers can pound salt for Christmas.
I can't see anybody keeping this guy in charge other than himself.
Feature on moto moms???????
Where is this disgusting piece of filth, so I can be just as outraged?
Just curious if the new sound regulations that MXGP and eventually AMA are adopting will only apply to on track bikes or if the manufacturers will be forced to produce a sound compliant showroom model. Obviously Kawasaki is trying to think ahead with their choked-up 450, will KTM be forced to re-design their models at least a little to comply? It might not be easy to just slap on different graphics and trot out the same 2025 SX-Fs for the next few years.
https://www.vitalmx.com/features/moto-moms-ep7-ft-lisa-difrancesco
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You just know Chase is kicking himself in the backside for taking the KTM ride. Hindsight is 20/20, but he's made it no secret he doesn't like the switch. I'll be surprised if he makes it out of the SX without either leaving or the team being dismantled.
They probably get unemployment or some government assistance right?
Yes the state insolvency fund is paying them because KTM is too broke. They did not say when they would receive payment.
I think 300m was selling and racing expenses. Selling includes rebates, advertising, probably cost of shipping bikes and parts, floor planning for dealers, warehouse space in each country to hold bikes prior to shipping to l dealers and a lot of other stuff that has nothing to do with racing.
very well stated!
So here’s my prediction to this mess. Here in the states many of the KTM dealers also rep other brands and doing fine with or without KTM. They are not going to roll over fire sale a bunch of orange bikes and take a hit. If KTM requires they floor plan a large number of this excessive inventory if it exists……..the orange sign out front comes down.
If that happens KTM may be forced to liquidate using wholesalers and liquidators. Just like the pallet buyers for overstock Ryobi drills and etc. Maybe crates of motorcycles, not drills and chainsaws. If KTM inventory is even half the numbers floating around, it’s way more than the market can absorb. My gut tells me the our used bikes in our garages will be worth way less toward the end of Q1 2025. But that just speculation on my part. For the time being the dealers are going say things are going to be just fine no matter what the situation really is.
If this were to happen, do you have a feel for what wholesalers would be used? Would be cool if we got a group buy of sorts going and could purchase a 10 lot of 300s or 350s or something.
Ah that makes sense. Thanks for the clarification
I don't dispute your comment on prices of everything going up. There was also the factor of "free government" money that was tossed around during the Great Flu that is now coming home to roost. A number of other factors as well. However, blame does go to the manufacturers for continuing to push bikes that are way more than most need. Even way more bike than most people on this forum need.
It's not really about 20-25 year olds either. It's about families that used to be able to go out and buy affordable bikes to ride/race together. Bikes that didn't cost a fortune to service.
Walked into a local dealer recently and it's a very different picture than it was a couple years ago. Prices slashed, plenty of stock of all brands...
Taking the orange sign down is easier said than done. There is a lot to undo.
If they have this many bikes hanging around wouldn’t it be best to pause production, then maybe sell these as 25-26-27 models with no changes? Come up with some new bold graphics/VIN update stickers dealers can install? I’m thinking on the dirt side of things.
Yeah, in another companies bank. The teams are creditors, like De Carli owning a team, Nestaan, Rockstar. None of the teams are owned by KTM, maybe financed, but not owned.
As I said before, racing efforts are fine for 2025. The only thing will be affected is development, nobody will get anything new for 2025, and probably 2026. The casualties that will come from this are staff, e-bikes, MV Augusta and some suppliers possibly not surviving. They buy product from a whole host of people, Akrapovic, Galfer, Polisport, Dunlop and they’ll all have an amount they’ll have to absorb.
He'll probably end up at Star once the teams fold around April.
If anyone wants to explore a deep dive into the KTM AG insolvency, I did one this morning.
Youtube: https://www.youtube.com/live/SUA7WEhbnh0?si=-FumJVHirtVXdJO3
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Have a happy holiday, all
Pit Row
On the MXGP side, yes, but the SMX teams are holding companies that are wholly or majority owned by KTM AG/PMG and could very well have assets frozen if it's required. They are definitely not off-limits in this mess.
Especially for a dealer like Robs Performance who now only sells KTM bikes (KTM, Husky and GasGas)…In the past they had Honda. Can’t sell Yamaha as Rock River a mile away..
Corporate Accountant/Finance professional here, its just astounding to me that a production company could overproduce this badly. The "covid boom" everybody mentions was literally one year...what about financial forecasting? Where are the FP&A, Strategic planning, etc departments in this? You are telling me in 2023 they were looking at forecasts being like...yeah those 2021 sales are solid lets continue to build those in to our LTFP. Wtf.
It annoys me when JT and others talk about how difficult and complicated it is to forecast sales in this industry. "Its incredibly hard, right, like"
It is difficult for any industry, but they act like there aren't forecasting models, cost accounting methodology, etc being applied. It feels like powersports just throws a sales number at the wall and goes with it. The final sales number is your base and with literally ONE YEAR of sales that significantly beat trend I just do not understand how they could get themselves in such a bad spot.
"I just do not understand how they could get themselves in such a bad spot."
"Delusions of Grandeur..."
You have to wonder if the “ready to race” deal has finally caught up to them. A very small % of riders actually race. If you walk into a PMG exclusive dealer - there is little to choose from for a beginner. They pretty much embody the eggs in one basket concept.
The Japanese have race bikes and trail bikes and if you are stepping away from 2 wheels they can put you on a quad or SXS.. hell they put you on the water as well. If you go to my local PMG dealer they literally have one of each model in orange / white / and red. - go to a Kawi or Yamaha dealer they may have 6 dirt bike total but loads of quads and SXS.
IMO at the bare minimum they need an aircooled 4S entry level line.
Ready To Ride
We have a dealer like that nearby as well. Gonna be a tough row to hoe for a dealership like that. I sure hope they can find a solution.
Does KTM still host an annual dealers meeting? What was the message to dealers? Were dealers being misled to floor more and more bike?
Actually the only year of sales that did beat the trend was the dip in 2020. Sales had been steadily increasing for the past 15 years and the trend simply reverted to that after 2020, I don't see any COVID boom in their sales numbers.
Obviously they got their forecast very wrong and this disaster tells us that they could not sustain this growth rate forever, just not convinced it has anything to do with post COVID recovery.
Can't pay your worker holiday but MotoGP is a hard GO.
The Burgermeister is going to have fun with Stefan.
That kind of growth is not sustainable in the long term, and making forecasts based on it is completely misguided. A first year business student could have looked at this and come to the same conclusion
The teams are actually owned or part owned by KTM North America Group Inc, which may or may not be operated in a similar way to European Teams and offices. It has a separate CEO in John Hinz, and I would imagine acts as importer/logistics and sales for KTM AG.
Although it may seem like it with a series of miscalculations like we are seeing in forecasting and over production, PMG are quite clever in how their business operates
Doesnt seem that clever from where I am standing but ok ....
Post a reply to: KTM Has an Entire Year's Worth of Unsold Motorcycles Piling Up 265,000 motorcycles are just...hangin' around.