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I hope Soggy won't stomp my pee pee if I am wrong but it looks to be all PMG Brand dealers.
Haha what?
Don't stop his pee pee man
Consider who is capable and who would want to buy a warehouse full of KTMs? Autozone, Walmart, Camping World? It would be an Arctic Cat/Tracker scenario. Imagine how it would devalue not just KTM but all bikes. Thousands and thousands of new KTMs sold for a fraction of retail, imagine how much that would hurt other brand's sales, not to mention used bike values, and existing real KTM dealers. Thousands of new riders, unqualified, suing track owners, wheelying through sub-divisions. It would be bad.
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So we can all get bikes cheaper, and others looking to start riding can get bikes cheaper? Still don't see an issue with bringing costs down. That's some real twisted logic or some extra gate keeping type shit
And we're talking KTM so "cheap" would still likely be 5-6K for new big bikes even at big discounts. Not like you're getting one for the price of a Huffy
Deep pocketed dealers love opportunities like this.
Deep pocketed dealers like to oversaturate markets with undervalued products? If you can only ever sell ten at 10k before, do you think it's good to try to sell 20 at 5k later? Twice the work for the same cash, all the while devaluing the brand? What makes some products valuable is there are only so many available. Availability only for those that really want that product badly, true and loyal customers. If you oversupply and underprice the value of your product is destroyed. HD is trying to resolve it's issues by limiting production for example. Would you rather sell 2 elephants for a grand a piece or a thousand mice for 2$ a piece?
So did Austria just dump a bunch of leftover stuff on KTM NA? You would think with the sales at the end of 2024 that a lot of 2024s were moved. Maybe only a few dealers were doing that though.
The dealers where overstocked and mostly selling '24's with rebates. I don't think they are rushing to stock up some more. If they where I doubt KTM would be doing this. Seems to me there is no funding for another rebate program so we get this instead. If you move the stuff at auction I don't see how they would be responsible for rebates on it. The dealers take all the risk.
Yep, A dealer buying group is the way to go. Buy 'em up and blow' em out.
If you sell a shit ton in 2025 really cheap, how many will you sell in 2026 or 2027 at full price? Do you really think dealers are lining up to destroy next year's sales?
It has been painfully obvious since long before they even warned this guy has been doing nothing that could possibly save them and is very detrimental. It literally seems every move he made is trying to destroy it.
Idk what the numbers are. When I bought extra product at the Yamaha auctions, we just added it to inventory and sold it at a discount.
To put your analogy in motorcycle terms I’d rather sell 10 bikes and make $100 per unit than sell one bike and make $1000. In a dealership that’s 10 potential customers to spend money in parts/service versus one customer. That’s 10 customers to potentially give word of mouth advertising versus one. If a dealer can buy units below existing cost they can cost average and sell all like inventory at a lower price and still make their necessary margins.
A big multi line dealer near me bought 31 offroad '24 KTM models a couple of weeks ago. I do not know where or how they acquired them, I'm assuming they bought out a couple dealers or KTM sent them to them to move. A buddy of mine is friends with one of the co owners of the dealership and he told him that with KTM cutting production in '25 and '26 they think they can make bank on those leftover 24's when the market is starved for bikes next year. Obviously I'm not an economist nor a financial guru but that logic seems dumb to me. Why would anyone buy a new 2yr old bike when they could buy a lightly used current year bike for probably the same money or cheaper? In my area low hr bikes pop up almost daily on marketplace if you search long enough deals can be had. The problem with the above dealer is their BS fees also, what price they post online you can figure on adding in at least $1000-$1500 or more after they add fees and taxes. I know for a fact they have a '24 250xc posted for $8250, a guy I know from out of state called and offered $8250 cash for it and was told no that after fees the price was $9300. He told them no thanks and bought from another dealer.
It's a gamble but it could pay off because Dealers can offer financing for new bikes, the used low hour bikes are going to be private sellers. It's easier for a lot of people to put $1k down and sign on the line than to drop $8k on a used low hour bike. Also the dealer gives a little security since it is possible to ruin a bike in 10 hours, bike might be stolen, or you might be getting robbed.
And then how many bikes can they sell the following 2-3 years at full cost?
Seemingly that is secondary even when they are trying to convince the creditors they can pay back 1BIL in the next two years.
Maybe they know they can't and are trying to get more for them now than they will if the court shut them down.
Pit Row
Right now "2-3 years" from now is not a given for KTM as we currently know it. They have to move inventory so they can turn the lights back on at the factory, and offering units to dealers at auction benefits the parent company and the dealers. They would not be selling to Walmart or Autozone. lol
The big question is...how much are they going to be worth once they are entirely manufactured in China and India? And who is still want one once they're essentially an orange GPX?
So how much of debt is Pierre personally guaranteeing? If KTM goes down is he ruined? Just curious🤔
GPX resale is not good. I can tell you that lol. But having KTM dealer support would still be a bonus compared to other china bikes.
Maybe they are getting into white collar crime
How much can he? I'd be surprised if he was able to sign for anything significant at this point with most of the wealth wrapped up in the company's value
Edit: According to Forbes he has a net worth of 1.6B as of 2023, but that is mostly due to his ownership of KTM equity. At this point he's already leveraged that so not sure what he could actually use as collateral
Not sure how much he's personally guaranteeing but his reported net worth is more than double PMG's debt last time I checked.
You wouldn’t need to sell at full cost. Volume sales. How many people walk into any dealership and expect to pay MSRP for any vehicle?
They already know folks will pay $8K just about all day long. Then the dealer gets all the other benefits already mentioned and does not have to worried about a rebate credit.
But that net worth is in PMG stock, so its completely circular to say that he could give up his interest in PMG to some other party to pay creditors. That's exactly what the restructuring proceedings are to determine.
If they manufacture components and engines in China and or India, but assemble in Austria, you would never know, they may be doing some of that already.
Sounds like Redline Powersports to me.
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