The latest in the KTM saga

KTM needs an investor to help rescue it from financial difficulty, while there are doubts about the Austrian’s brand’s future in MotoGP. 

The extent of KTM AG’s troubles surfaced in November when the company announced it would undergo a legal restructuring by way of self-administration. Some reports claimed the company had accrued more than €3 billion in debt. 

Parent company Pierer Mobility AG recently appointed Citigroup Global Markets Europe AG to help reorganize KTM’s ownership structure and find new investors. 

Meanwhile, a report by the Alpenländischer Kreditorenverband (Alpine Creditors Association) said KTM AG and its subsidiaries will not be able “to serve the necessary means to meet quotas offered from their own resources or to generate them from operating cash flow”. In other words – KTM needs an investor to save it. 

The AKV report also listed several “reorganization measures” including the sale of Pierer Immoreal GmbH (Pierer’s real estate arm) shares, discontinuation of payments to non-operational subsidiaries, and a halt in production until after the restructure. There will also be stock sales at dealers, and a possible relocation of production. 

But despite reassurances from key KTM people that the brand wants to remain in MotoGP, the AKV report also stated than an “exit from MotoGP, and Moto2/3 is planned”. 

It is likely KTM will participate in the 2025 MotoGP season, but uncertainty lies beyond that. It has been estimated that KTM's MotoGP budget is around the €70 million mark.

The company has already dialled back its racing efforts in other categories – notably hard enduro and supercross/motocross – however it is currently leading the 2025 Dakar Rally with Australia’s Dainel Sanders. 

There have been rumours flying around since KTM’s initial restructuring announcement, including the possibility of Red Bull buying the afflicted company, and even of Lewis Hamilton purchasing a stake in the MotoGP race team. But KTM has knocked the Red Bull rumours on the head, while the Hamilton buyout appears unlikely at this stage. 

Despite all the chatter, the overall picture for KTM is clear – it needs to find money, and fast. Some of this will come from selling excess stock, laying off staff, and reducing production costs, however it appears a big outside investor will be required to save the embattled Austrian firm. More to come.