Poncharal: KTM’s MotoGP program ‘proceeding as usual’
Nothing changes for KTM Racing GmbH? Might Red Bull come to the rescue?
Herve Poncharal, boss of KTM’s satellite Tech3 team, says “everything is proceeding as usual” for the 2025 MotoGP season, despite the financial crisis facing the Pierer Mobility Group.
“For 2025 everything is confirmed,” Poncharal told GPOne.com. “In Barcelona, during the last GP, I had a meeting with Hupert Trunkenpolz, Pit Beirer and Carmelo Ezpeleta: There is a plan and it will be respected. From the information I have received, the Racing Department will not be affected by the Pierer Group’s financial difficulties.
“Just a week ago the crew chiefs [for all four MotoGP riders] were in Austria at the Racing Department and everything is proceeding as usual.
"The usual winter preparation work is being done and bike assembly days have been confirmed for the end of the month. In short, they are working as usual," added the Frenchman, whose team will switch from GASGAS to Red Bull KTM branding in 2025.
Nothing changes for KTM Racing GmbH?
The latest estimates place Pierer Industrie AG's debts at 1.8 billion euros, resulting in KTM AG, KTM Components and KTM F&E (R&D) undergoing a ‘judicial restructuring proceedings with self-administration’.
KTM Racing GmbH is not part of that restructuring, but - like all companies in the Pierer Group - will be affected by the current financial woes.
As Poncharal indicated, Crash.net also understands that the KTM racing department is working as normal albeit under cost management.
As reported, KTM is going ahead with an upcoming private MotoGP test at Jerez, while the 2025 season is said to be within the currently agreed budgets.
A source close to one of next year’s KTM riders also expressed confidence that the same level of support will continue for the MotoGP project.
However, others warned that the motorsport situation might not be entirely clear until a vote on the proposed restructuring plan, and likely losses, has been taken on February 25.
The Pierer Mobility statement confirms: “The restructuring process will result in additional potential losses, for example due to one-off expenses such as necessary write-downs (e.g. for capitalized development costs) and costs for staff reductions as well as the shortfall in fixed costs due to the reduced operating performance and other costs arising from the restructuring process.
“Consequently, for the current 2024 financial year, the company expects a negative annual net result in the very high three-digit million range due to the aforementioned reasons.”
The concern highlighted to Crash.net by some paddock members - not directly connected to KTM - is if, when creditors and suppliers are facing substantial losses, not to mention staff redundancies, the banks and creditors will still support expensive motorsport activities.
KTM’s counterargument to such cuts would be that having built much of its brand and sales around motorsport, including the ‘Ready to Race’ slogan, it would be commercially counterproductive to squeeze the racing budget beyond the ‘must have’ requirements.
“We no longer have the 'nice to have' money, but we will do everything we can to ensure that we have the 'must have' [money]... We will focus on [making savings] where it doesn't hurt the rider on the track,” KTM Motorsport director Pit Beirer pledged at last month’s Barcelona MotoGP finale.
The cost of KTM's grand prix activities - the Rookies Cup, Moto3, Moto2 but mainly MotoGP - is estimated at 40 million euros, with around 10-15 million from Red Bull sponsorship.
Red Bull to the rescue?
One way to isolate the MotoGP project from cost-cutting concerns and ease doubts over its long-term future ahead of new 850cc machines in 2027, would be if an outside investor took over ‘KTM Racing GmbH’.
Red Bull - or one of its Austrian shareholders - would be the dream choice, since it is already closely tied to KTM and could incorporate the prototype MotoGP (and Moto3) activities into its vast 'Red Bull Racing' and associated technology divisions.
Red Bull Advanced Technologies already works on the RC16’s aerodynamics, while Red Bull has plenty of F1 engineers that could build its carbon fibre chassis. Red Bull Powertrains could contribute to what is already MotoGP's most powerful engine.
One paddock source with a legal background, looking at the situation from the outside, described such a situation as potentially the perfect solution for the race team to avoid conflict with the KTM creditors.
KTM AG could be left to operate its own ‘production’ racing programmes such as motocross, enduro and rally raid.
But for now, it’s all speculation, with Red Bull Racing telling Crash.net at this weekend’s Abu Dhabi F1 finale that they have no comment on the KTM situation.
The first creditors meeting to discuss the KTM restructuring plans is scheduled for December 20.
Peter has been in the paddock for 20 years and has seen Valentino Rossi come and go. He is at the forefront of the Suzuki exit story and Marc Marquez’s injury issues.
