KTM to give up MV Agusta stake

KTM looks set to ditch MV Agusta, with a trade union report suggesting the troubled Austrian giant no longer considers the Italian brand a “strategic asset”.

A branch of the Italian Confederation of Trade Unions (known as CISL in Italy) said that a meeting took place in Varese between trade union parties and KTM representatives on December 9, where negations began to give operations back to MV Agusta by the end of March 2025. 

KTM is yet to confirm its separation from the MV Agusta brand.

PIERER Mobility Group (KTM’s parent company) purchased a 25.1 per cent stake in MV Agusta in 2022, before exercising a takeover option earlier in 2024, claiming a 50.1 per cent stake in the luxury Italian brand.

But as KTM seeks to avoid bankruptcy with debt in the “high three-digit million” range, it appears MV Agusta could be the first casualty. 

One of KTM’s main issues is unsold stock sitting on dealer floors and this includes MV Agusta products. The Italian brand will need to sell around 2000 motorcycles that are currently unsold, while proceeding with plans to produce about 3000 motorcycles in 2025. 

While KTM will help move unsold stock initially, MV Agusta will eventually have to sustain itself as it takes back production and sales. 

MV Agusta is confident it can emerge from this period intact, but it remains to be seen what agreement will take place between KTM and the Italian brand. 

KTM has not released a statement on its financial issues since it announced the application for self-administration on November 29. It is not expected that KTM will comment until the 90-day process is complete. 

It is likely the Austrian firm will be a slimmer and more streamlined operation in 2025 after years of rapid growth. The company expanded off the back of booming sales during the COVID-19 pandemic but underestimated the steep drop-off that followed. 

A reduction in production numbers in Austria is expected, while production in India and China could be ramped up. It is also not impossible that Bajaj (currently a part owner of KTM) or CFMOTO (a joint venture partner) could buy a controlling stake in the company. 

KTM AG also owns the Husqvarna and GASGAS brands.