ROAD NEWS
KTM ’ S CASH CRISIS
After three decades of wildfire growth , things are not looking quite as hot for the Mattighofen marque . With post-pandemic sales actually up on the pre-pandemic levels , it has been an abrupt change of fortunes , making it all the more challenging for the Austrian brand to navigate a clear path . Pierer Mobility and KTM AG ’ s Chief Financial Officer , Viktor Sigl , was shown the big orange door and Stefan Pierer stepped into that role for the interim period . He has since placed Gottfried Neumeister as Co-CEO to help ‘ get KTM back on track ’ to forge ahead . With what was , until recently , the European motorcycle market ’ s poster kid of success seeing a swing of almost 300 million Euros from profit , and a record sales year ending in 2023 , to a stinging loss , there are multiple factors in the ‘ pit stop ’ as KTM has called it . This is a production pause of two months and a 90-day period to steer the situation around to profitability under the guise of a ‘ self-administration ’ scheme – a form of judicial restructuring that sees the company retain control of assets while creditors interests are under the protection of a courtappointed supervisor . The bicycle / e-bike side of the business took the biggest hit , but the motorcycle segment has also had a terrible 2024 with the global facing challenges linked to both the pandemic lockdowns and the current international fisticuffs in several regions hitting luxury items hard . This has meant stock levels remained stubbornly high and has seen huge discounting hurting the previously unshakeable faith in the brand . KTM has still released a swathe of new and updated models at the EICMA Show just prior to the announcement and has options within its partnership group but so far no news of a supporting hand up from Bajaj or CFMOTO , both of which are intertwined with KTM , and so far Red Bull , which provides much of the backing for the race teams , has said nothing . Indeed , KTM
Gottfried Neumeister and Stefan Pierer have got a hard job ahead of them
were quick to quell rumours of such a deal being on the cards . Meanwhile , over 5000 workers and the small town of Mattighofen ( pop ~ 7000 ) can do little other than carry on and keep the faith that the largest producer of motorcycles in Europe ( kind of a stretch to phrase it like that in the modern era ) can use the passion and enthusiasm that hewed the brand into what it is , can ride out the tough times , which is what it will be , and come out swinging . On the shoulder of KTM ’ s financial woes , naturally , rest the futures of the other brands in the stable . GasGas has already reduced commitments in Rally and MXGP , as has Husqvarna . MV Agusta , in hindsight , may have been acquired at an unfortunate time and being last on … So , the motorcycling world waits and hopes . The next 90 days are crucial to the business , and let ’ s face it , KTM is a big player in the motorcycle market , producing up to 1000 units per day . Making things tougher is the general state of the economy and some other big automotive players in the neighbourhood slashing costs , production and staff at the same time .
KIWI RIDER 17