Shock rumour in Austria of BMW buyout before KTM survival vote
BMW reportedly wants to buy KTM but remove it from Austria
German car and motorcycle manufacturer BMW is rumoured to be interested in buying KTM, but wants to remove the operation from Austria, according to local media.
KTM, Europe’s largest motorcycle manufacturer, is in the midst of a restructuring process after it entered into self-administration late last year owing to a financial crisis.
On Tuesday, creditors will vote on this restructuring, which would see KTM pay back 30% of its reported €2-plus billion debts by the end of May.
Should the vote not go in KTM’s favour, it will likely have to declare bankruptcy.
Ahead of Tuesday’s vote, a report from oe24 in Austria states that BMW Motorrad is keen to buy KTM but take the brand out of Austria.
According to oe24, BMW would relocate KTM’s research and development to its Munich base while production would be done in India.
As a result, all 4500 members of staff currently employed by KTM in Austria would be laid off by the end of 2025.
KTM’s suppliers in Austria would also lose out in this deal, with BMW using its own supply line.
The oe24 report - which it says comes from a source close to the KTM situation - claims that BMW moving KTM out of Austria and laying off all staff would leave a bill of €225 million for taxpayers as the Republic of Austria’s insolvency burden equalisation fund would have to pay the ousted workers.
A KTM buyout by BMW would also likely have an effect on the Austrian brand’s MotoGP project.
Over the past year, BMW has expressed an interest in potentially joining the MotoGP grid, though nothing concrete has ever come to fruition.
BMW currently races in the World Superbike Championship and won the title last year with Toprak Razgatlioglu.
Prior to these latest reports, KTM is said to have found up to €900 million in funds from outside investors which would cover its 30% debt repayment to creditors.
