Motorcycle manufacturer KTM finds itself in a precarious financial situation, facing a staggering debt of 3 billion and projected losses exceeding 900 million for 2024. The company’s stock value has plummeted by a staggering 90%, painting a grim picture.
In response to this crisis, KTM’s parent company, Pierer Mobility, has announced that the motorcycle manufacturer will enter a form of self-managed receivership. While the primary objective is understood to be cost reduction, the fate of the racing department remains uncertain.
The overproduction of motorcycles currently stands at 1,000 units per day, exposing a worrying disconnect between supply and demand. This situation puts approximately 3,600 jobs at risk, with the possibility of 500 employees facing layoffs within the year.
KTM is considering a multi-pronged approach to address its financial woes. In addition to reducing staff numbers, the company plans to devalue assets and conduct a thorough review of fixed costs.
A significant shift in production is also on the horizon.
The Austrian plants are slated to cease production for the first two months of 2025, while production will continue at sites in India and China through the company’s partnership with Bajaj.
Despite these challenges, KTM remains optimistic about its future.
“We are facing one of the greatest challenges in our history, but we are determined to turn this crisis into an opportunity to build a stronger future,” said Stefan Pierer, CEO of KTM.
“We are working on new technologies that will allow us to redefine industry standards.”
In an effort to reassure customers, KTM has issued a statement emphasizing that there will be no disruptions to the delivery of motorcycles, spare parts, and accessories.
“Nothing will change, of course. We guarantee continuity in the delivery of motorcycles, spare parts and accessories under the usual conditions. There will be no irregularities in the flow of goods or in customer service.”
As KTM navigates through its financial storm, the impact on its MotoGP racing team is a point of concern. While KTM has confirmed its participation in the 2025 MotoGP season with four motorcycles – two official bikes and two from the Tech3 team – there are concerns that the RC16 development budget may be reduced. Evidence of potential cost-cutting measures emerged during a recent test on November 19th, where the new components were limited to a fairing and a pair of new windshields. Neither test rider took to the track.
The future of KTM, both on the racetrack and in the wider motorcycle market, hangs in the balance as the company charts a path through these turbulent times.
Can KTM afford to maintain its MotoGP presence given its current financial troubles?
## KTM in Crisis: Will MotoGP Survive?
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**Host:** Welcome back to the show. Today we’re talking about a major shake-up in the world of motorsports. KTM, the Austrian motorcycle manufacturer, is facing a serious financial crisis, and it’s raising questions about the future of their MotoGP team. Joining me now to discuss this is motorsport journalist, [Alex Reed Name]. Thanks for being here.
**Alex Reed:** Thanks for having me.
**Host:** So, KTM is in deep trouble, right? Tell us what’s happening.
**Alex Reed:** Absolutely. KTM is swimming in debt, reportedly around 3 billion euros, and they’re expecting to lose more than 900 million euros this year alone [[source unavailable]]. This has led to their stock plummeting by 90%, which is a staggering drop.
**Host:** This sounds dire. What’s KTM doing to address this crisis?
**Alex Reed:** Their parent company, Pierer Mobility, has announced they’ll be entering a form of self-managed receivership. This essentially means they’re going to try and restructure the company to cut costs and try to turn things around.
**Host:** And what about their MotoGP team? That’s a big investment.
**Alex Reed:** That’s the big question mark, isn’t it? KTM has a strong presence in MotoGP, with four bikes on the grid and big-name riders like Maverick Vinales and Enea Bastianini signed on multi-year deals [[1](https://www.the-race.com/motogp/ktm-crisis-is-its-motogp-future-under-threat/)]. But with money tight, it’s unclear if they can afford to maintain that level of commitment.
**Host:** It’s a worrying time for KTM fans and the MotoGP paddock as a whole. Do we have any insight into what KTM might do regarding their racing program?
**Alex Reed:** It’s all speculation at this point. Some experts believe KTM may have to scale back their MotoGP involvement, perhaps reducing the number of bikes they field. Others argue that the racing program, with its global visibility and marketing benefits, may be too valuable to simply abandon.
**Host:** A difficult balance to strike for sure. We’ll have to wait and see what happens. Thanks for shedding light on this complex situation, [Alex Reed Name].
**Alex Reed:** My pleasure.
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