The Cannibalization Complication – Austria's Angle 4

The Pierer Mobility Group continue to reinforce their position as the leaders in the off-road space, yet the sheer volume of their success has caused the splendor to be lost. Should there not be more emphasis on the fact that the manufacturer established the parameters of domination?

There is little need to unpack all that the brand has achieved with KTM, Husqvarna and GASGAS. Consider that their teams remain unbeaten in the MX2 class of the 2024 FIM Motocross World Championship and have claimed 33 of the 39 spots on the podium thus far for reassurance of their prominence. Even those superb numbers divert attention from the fact that they have won all but five of the rounds in the MXGP division and lead the 450MX portion of Pro Motocross. Note that Tom Vialle and RJ Hampshire ensured that the ensemble swept 250SX in Monster Energy Supercross too.

It is near impossible to construct a manner in which their squads could be more effective in the prominent championships on both sides of the Atlantic. Is that celebrated or dismissed as the norm? It could be said that the three manufacturers are victims of their own brilliance. Achievements like those are just expected and never celebrated. It's the paradox of success: Accomplishing too much can become a burden and the difference in how one is perceived can have massive repercussions on motivation to repeatedly reach the pinnacle in said field. The attraction of MotoGP is understandable all of a sudden, no?

It is possible that a lack of identification comes from the fact that success is split over those three different manufacturers and teams. Although those with a keen interest in the sport are aware that Husqvarna and GASGAS exist as subsidiaries of KTM, the optics of the situation hint that the latter has actually lost market share in recent times. The force of the Pierer Mobility Group would be undeniable if the color orange had been splattered across all but six steps of the MX2 podium thus far. Instead, a constant reiteration of the current landscape is required to illustrate their magnificence.

It is a curious predicament and one that Robert Jonas, the off-road manager there, has reflected on. "It is difficult," he stated from within Red Bull's hospitality suite at a recent fixture. "The Husqvarna fans do not care about a KTM win and vice versa. It is easy in my position, because I am happy. The customer is not though. That is the challenge that came when we decided to enter with two and then three brands. If you are an insider like us then you see that KTM, Husqvarna and GASGAS occupy a good part of this paddock and racetrack. 

"If you see this from the outside – if you are not so familiar with the situation or do not care – then you see a smaller KTM show, a smaller Husqvarna show and a smaller GASGAS show," Jonas continued "If you put all of that effort into one manufacturer then it would make for a different picture." Such observations are salient in the wake of recent announcements. There is undeniable truth behind the sentiment though and, had the initial plan been possible to maintain, perhaps the outlook would be quite different ten years into the project.

It was well-publicized that Husqvarna had been drafted underneath the Pierer Mobility Group umbrella in 2013, but those with an invested interest were adamant that 'white' would look rather different to 'orange' – the idea was for each manufacturer to follow a unique direction. Even a mere mention of Husqvarna in the same breath as KTM was met with a tut. Soon those involved realized that it was near impossible to travel in opposite directions and arrive at the same end destination, that being with the best bike on the market.

"That was the vision at the beginning [to ensure that KTM and Husqvarna were different products] but it only makes sense to introduce a second brand if you touch a different customer," Jonas explained in a very candid nature. "Cannibalization does not make much sense at all! That was the sense behind the brand separation and it was pretty intense, actually, because a KTM dealer was not supposed to sell Husqvarna motorcycles in the beginning. We found out quite soon that was not the smartest decision or approach. 

"My personal opinion is that, from a technical point, you can only build the best possible motorcycle one time," he continued with passion. "The second one would be somewhat of a compromise, but not necessarily because an idea could come later and so on. It is just challenging to work with multiple brands and have everything on the same level! We were trying to have everything on the same level but be different. It is not easy." The stance that everything was "different" was obvious from the beginning – two Husqvarna teams in Grands Prix boasted as many as six riders at one moment.

Although there was that impressive commitment to the 'new' manufacturer in their fold, there was still an internal pushback about whether favoritism moved in either direction. "We have had some questions and challenges in the time when it was Jeffrey Herlings versus Tony Cairoli on KTMs," Jonas confirmed. "We made some smart – or not-so-smart moves – and we could clean the table. There was no different material available, anyway, so it was quite simple. It is 100% clear that everyone has the same parts in Europe. It was a little bit more of a challenge in the United States, because of Roger De Coster's involvement. 

"The fact is that he [Roger De Coster] was working on some parts alone," Jonas continued with frankness. "If he produced one part on his own, then it would only be available once and a Husqvarna rider would not have it. We would attempt to deliver them the parts as soon as possible, but if he produces something overnight for his number one rider then it would not be available for the other riders. I remember there was a protection for the master cylinder of the clutch or front brake, whatever it was, and the other riders saw it. There are absolutely no differences between the three brands in Europe, however."

It is somewhat humorous to see the stark contrast between the ensemble in the United States and Europe. There is little separation in Grands Prix, as each manufacturer features an elite name and apparent star of the future. GASGAS just clinched its first world title in its fourth season and Husqvarna seems set to make the same leap in the not-too-distant future. KTM's maintained its status as the leader in the United States, nonetheless, and acquired the elite talent more often than not, which has left so little room for Husqvarna or GASGAS to climb to the summit of 450SMX.

Perhaps this speaks to the depth in the SuperMotocross World Championship? "This is an issue that has come with dealing with three brands – it's quite a challenge. You get to a point, of course, where whenever Husqvarna and GASGAS win, KTM does not win. Vice versa too. You could call it a win-win situation, but also a lose-lose situation." Curious, is it not, to consider this a lose-lose situation, but it is an acute stance and one that is prudent. News of the Pierer Mobility Group's plans for the next season will be made public before the conclusion of July.

It is at this moment that it would be worthwhile to provide clarification of the fact that MotoGP does not detract from the off-road activities nor is the intention for it to. "For sure not," Jonas said. "These are very separate budgets. I mean, in the end, it is all one budget, but those are separate budgets and we have tried hard to make sure that MotoGP does not eat the overall budget. It is an expensive game. I do realize, being an off-road rider, that it is important for the brand. From the technical side, we can learn a lot from each other. This is the benefit, for sure, and we try to introduce that. I am 100% sure that KTM would not be different if MotoGP was never touched."

Even so, there are alterations that do lie ahead as one would expect. Advancement is a must whenever a force is attempting to maintain an incredible level of success. "We have run over a couple of scenarios," Jonas said with hesitation. "We have to adjust the racing situation and save a little bit, with the current economic situation that is not so great. We are trying to make smarter plans and adjust for the next two years. I do not think that we will have huge changes, but there will definitely be some."