Dark clouds hanging over Mattighofen

[Wasp]

The first hearing in the insolvency proceedings of KTM AG took place, shedding light on the company's challenges and steps for reorganization. The bankruptcy trustee, Peter Vogl, reported that the restructuring procedure will continue under self-administration, as it does not currently pose a disadvantage to the creditors. KTM's liquidity plan has been validated for business continuity, and although the company is facing difficulties, the plan has ensured sufficient liquidity until the next review hearing.
The insolvency was caused by significant investments financed by debt, which have led to an increase in liabilities. Despite high production levels, sales did not meet expectations, resulting in large inventories and liquidity issues. Additionally, rising personnel, energy, and material costs further strained finances.
In an effort to reduce costs, KTM plans to exit from MotoGP, Moto2, and Moto3, although it’s not entirely clear whether this will apply to all classes or only Moto2 and Moto3. The company is also considering relocating production to reduce costs, with production suspended until the reorganization plan is finalized. Other measures include the sale of shares in PIERER IMMOREAL GmbH and the cancellation of payments to non-operating subsidiaries, which may result in further insolvencies within the group.
KTM is working with Citigroup Global Markets Europe AG to find investors for its restructuring. A basic agreement with potential investors is expected by mid-January 2025, but the complexity of the process means a full assessment of the reorganization plan’s feasibility will take more time. The creditors’ filing deadline is January 16, 2025, and the next hearing is scheduled for January 24, 2025.
While the exit from MotoGP and other racing classes would represent a major shift for KTM, it’s clear the company is making significant efforts to restructure and secure its financial future.

[pokey]

I read KTM will not continue past their GP contract for 2025. This leaves an opening for others like BMW to test the muddied waters.  Other avenues for cost reductions have mentioned doing away with the salary of Danny Pedrossa  their test rider. As far as the teams go they say everything is going well and its business as usual though one does need to think that statement came as an order from a hopeful KTM board.

Over capitalising over production and over Estimating themselves have left KTM with a years worth of inventory left unsold. Products have started to be offered with heavy discounts and more to come as KTM try and regroup after a retreat. If anyone ever considered buying a KTM bike now could be the time to pick up a bargain though one would have to like orange and ponder what rhymes with orange.

The word China appears in almost all rescued bike brands particularly the Italian marques who enjoyed past glory. Will the reformed KTM have to Kow Tow and be part of the great leap forward, the grasp for Knowledge? From what I see clan membership has not helped Benelli nor Morbidelli achieve any kind of sales success on a world scale though if KTM is to continue in any form an Asian influence will heavily feature as it does for 90% of brands including BMW Harley Davidson and Triumph. The coming weeks will see just how much debris has been hidden under the smoke left by the fireworks that looked so pretty for a short while.

[pokey]

So KTM have filed for bankruptcy with over 2 BILLION Euro debt and a stockpile of 300 thousand unsold bikes.

This doesn't fare well for the groups other brands like Gasgas and Husqvarna.

2 companies are in "talks' with KTM namely the Indian Bajaj and Chinese CFMoto.
CFMoto has had a business partnership with KTM for some years building small bore KTM badged bikes for the Chinese market and holds shares in KTM. The latest much upgraded products from CFMoto to hit the world stage are KTM so it would seem a foregone conclusion CFMoto would take full control if it chooses. February was the cut off for KTM to keep self managed so now we wait.

[Wasp]

Leftover stock could be upgraded with racks , lower gearing , quiet mufflers and a greenish sticker kit to carry things like Amo and other supply in remote places. That is were it is heading now.

[PeterC]

We all wait woth baited breath to see what tacks they tske to clear stock and how this impacts on their fiture. no

[Wasp]

The Condor 350 has been around since the mid seventies and has served well over the years as a mule, MP, courier etc .  https://bikeshedtimes.com/1977-condor-a350-10000/     Now we have also serving ladies in the forces and something more modern with electric start would be perfect.  Overall height would need to com down by 75mm and a few other little mods to make it more useful. But all in all 100-200K bikes would be used up immediately in a fast expanding market . And I mean a very fast growing market from now on , in Europe especially.

[Tomas]

Someone from asia will buy the brand name and manufacture motorcycles. Bit like Jawa or Royal Enfield. Only problem may be that it would be harder to pick which bike to manufacture. Not sure if KTM had something that is/was as popular as Royal Enfield or Jawa. Life goes on. Saab is no longer around neither is Oldsmobile

[skypig]

Or Holden.
Life does go on, but it’s still sad that Holden have gone.

[Tomas]

It is sad. But look at MG

[Wasp]

Or Holden.
Life does go on, but it’s still sad that Holden have gone.

Holden was the beginning . Now it has reached  global level.It is not just KTM , there is BMW and VW on the list as well.(With a chain reaction to follow)

[skypig]

It is sad. But look at MG

 
I think MG used to stand for “Morris Garage”?
Now I think it’s “Ming Gua”?

[Wasp]

It is sad. But look at MG

 
I think MG used to stand for “Morris Garage”?
Now I think it’s “Ming Gua”?

It does not really matter . As long as the western suckers fall for it. Thats all they are interested in.

[the farm]

It doesn't really matter who makes a profit, china or someone else. i love motorcycles in particular dirt bikes , the sport, history, culture and art of two wheels. I could never afford the bikes , merchandise , entry fees ,license fees,riding gear, petrol, streaming subscriptions . So like the average chinese person i just ramble around in my shed and occasionally pull out the old ty 175 with wobbly swing arm and yz seat and go jumping logs for a while . On any sunday or weekday free. Don't really need or desire a KTM.

[PeterC]

Couldn't agree more. Each ti their own. just enjoy the ride, whatever it is!

[pokey]

 A KTM as a military vehicle? naa.

History has shown a more utiltarian choice rather than a high strung bike, I can think of WLA harley Indians. Enfields  and BSA, Australia liked the BSA B40 Suzuki GS400 and the Kawasaki W1. All the models i can think of have been solid medium range road bikes with the KLR650 being the most sporting although even that was given an agricultural Diesel engine  for some markets.

 Offroad ability has never been a consideration rather ease and length of maintenance periods, reliability and i guess pricing. With advanced signaling and communications i doubt bikes would feature much in any conflict as they were mostly used as dispatch or for Military police. Orange isnt the best shade for camouflage so thats an additional cost im sure neither party would be willing to cover when so may other choices  are out there.