KTM: Round-up

It had recently become clear that the financial situation at KTM’s parent firm Pierer mobility (which also owns GASGAS, Husqvarna and MV Agusta) was turning critical. Rumours of problems had been circulating since the summer, when the firm’s share price began to fall, a situation initially put down to the collapse in the e-bike and bicycle sector post-Covid. Pierer had made several big investments in pedal power and the downturn in that sector hit it hard.

But at the end of November last year, Stefan Pierer himself announced that the firm was entering into voluntary administration. “KTM, which has grown from 160 employees and a production volume of 6000 units in 1992 to a capacity of up to 1000 motorcycles per day, is now facing significant hurdles,” said Pierer. “To address these, KTM will initiate a legal restructuring proceeding with self-administration. The application will be submitted on Friday, November 29, with the goal of concluding the process within 90 days.”

Further announcements from the firm spoke about a ‘high three-digit million’ figure as the debt in Euros – in other words, in the many hundreds of millions, up towards a billion. That news came after the firm had already announced an operating loss of over €100 million for 2024, and some reports talk of a €1.7 billion debt.

The administration process gives the firm time to try and find a way out of its problems, through refinancing and restructuring. In the short term, there have been various stories – official and unofficial – regarding the end of the firm’s MotoGP, Moto2 and Moto3 projects (apparently safe for 2025 but not 2026); the sacking of celebrity race test rider Jeremy McWilliams; and factory staff in Austria not being paid. One story which seems to be fairly solid is that Pierer is selling off its 51 per cent share of MV Agusta, the Varese firm it only took over in May last year.

There’s no shortage of possible saviours in the wings. Pierer has strong relationships with Bajaj of India and Chinese firm CFMoto, both of whom have deep pockets. Closer to home, rumours were circulating over Christmas about Red Bull stepping in to help its fellow Austrian firm. And the probably more likely, but less exciting option of a rescue package and refinancing deal from a variety of European banks and financial institutions is also a possibility. Current creditors have apparently been offered a 30 per cent settlement on the money they’re owed as part of an initial restructuring arrangement, but it’s a massively fluid situation

For the moment though, Pierer is looking to keep customers on-side, promising that day-to-day operations like parts supply and dealer network will continue as usual. In a statement in late December, the firm stated: “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.”

Our sister mag Fast Bikes have spoken off the record to staff at KTM UK, and they say that they’re working as normal, getting the new 2025 bikes in for market, and don’t expect anything to change very much until after the end of the administration period in early March. Fingers crossed for the folks in the orange team shirts.