KTM “not letting off the throttle” amidst financial crisis

KTM says it is “not letting off the throttle” into 2025 amidst its current financial crisis after Friday’s Regional Court ruling said the company could continue in its current form.

The Austrian manufacturer has tallied up debts of at least €1.8 billion, according to a report from ORF on Friday, having entered self-administration last month to stave off bankruptcy.

Hundreds of members of staff have been laid off, with another 300 redundancies expected - though this is lower than the 500 initially expected by KTM.

Production has been halted until the end of February, while staff are having to wait until at least the end of January to be paid their November and December salaries.

On Friday, in a Regional Court hearing, KTM was allowed to continue in its current form, while three parties have expressed interest in investing up to €700m as it presses on with its restructuring.

A creditors’ meeting will take place on 24 January, while its restructuring plan will be voted on at the end of February.

Little has been said officially about KTM’s MotoGP project for 2025, though senior figures within the brand have said previously that the programme will continue as planned.

This was then followed up by media rumours of a development freeze for the 2025 RC16.

KTM has released a statement on the current situation suggesting it remains committed to its racing endeavours in 2025, but doesn’t directly mention MotoGP.

The full statement is as follows:

“‘READY TO RACE’ is more than a slogan for KTM. It defines our existence. In competition, there are highs and lows, daring and disappointment, and victory and defeat. 2024 has been a year of conquests but also challenges for the company.

“Heading into 2025 and the future, there are more jumps, ruts, and bumps ahead - but we are not letting off the throttle.

“2024 has been a remarkable year for KTM, marked by bold innovation, thrilling victories, and unwavering customer dedication. While challenges are part of any great journey, we see them as an opportunity to accelerate toward an even brighter future.

“It is no secret that KTM AG is navigating a shifting economic landscape. However, as our ‘READY TO RACE’ mantra suggests, we are embracing this moment to realign, refuel, and reinvigorate.

“KTM remains fully committed to delivering exceptional experiences to our current and future customers. We will continue to thrill and find our way to the top of the podium again.

“Racing is where we show our brand, our engineering and our passion for the chase. Over the past year, our motorsport teams continued to achieve greatness. We started the season with a staggering 341 FIM World Championship titles.

“The globe-trotting calendars involved more than 1,480 race starts and brought us 246 podiums and 150 wins across various disciplines. Of course, there were hardships and injuries—these go with the turf—but KTM impressively added 11 more hard-fought titles to the record.

“Off the racing line, the KTM brand has also been extremely active this year. The brand unveiled 59 new models, hosted three international media launches with 152 media partners in attendance, successfully pulled off three customer events with 283 participants, and returned to EICMA, the world’s largest motorcycle show, with a massive 1,635 m² booth along with 17 new KTM products.

“There has been a strong push behind these new motorcycles, as well as efforts to ensure we maintain momentum in the right areas. KTM is applying the same forward-thinking approach during this restructuring phase.

“Our goal over the next 90 days is to stabilise the business while setting the foundation for sustained growth and success.

“Throughout this period, KTM guarantees the continuation of motorcycles being delivered through our Authorised KTM Dealer network. The same goes for our spare parts, technical accessories, customer service support and warranties which remain unchanged, ensuring ongoing and unwavering support throughout this period.

“The work and the desire for the latest edgy, extreme and adventurous motorcycles goes on. KTM is preparing the launch of a brace of highly anticipated models, which will be in dealer showrooms in the first quarter of 2025. This again shows our pledge to remain as one of Europe’s leading motorcycle manufacturer well into the future.”