Is KTM in financial trouble?

[Supermofo]

In related news, this is my mates 1290. Ridden all weathers, no protecting sprays other than back to black bumper spray and regular washing. It's recently started to throw an error on the dash but can be cleared and doesn't return. He suspects a wire somewhere starting to short. But apart from that no issues in his ownership (starting at 50k miles!) and everything still works including heated seats, leccy suspension etc.









Caused a bit of a stir at the Triumph dealer who MOTd it the other week when they recorded the mileage.

[mangocrazy]

144k miles? That's seriously impressive.

[Supermofo]

144k miles? That's seriously impressive.

I know and doesn't look it at all does it

[KungFooBob]

Is it because he rides it like a girl?

[mangocrazy]

Is it because he rides it like a girl?

I think Sir should share with us his annual bike mileage...

[KungFooBob]

I think I've managed at least 250 miles so far this year.

But I'm off to Fronch in a week or two, so should hit at least 2k this year

[mboy]

144k miles? That's seriously impressive.

In my (not quite as impressive as this!) experience, KTM's like to be ridden often and ridden hard...

The problems tend to occur with bikes that are ridden infrequently and overly treated with kid gloves.

My latest 1290SAS is just over 5 months old and gone past 7500 miles already now, not a single issue other than an appetite for rear tyres!

[The Spin Doctor]

Back in April in my Elevenses webcast, I commented:

"By dint of performing a Borg-like assimilation of motorcycle brand after motorcycle brand plus a few cycle firms along the way, Pierer Mobility are Europe’s largest motorcycle manufacturer.

"But all is not rosy in the garden.

"On the plus side, Pierer achieved a 9.2% revenue increase to a record £2.271bn, mainly driven by its motorcycle segment. Unit sales were up by 1.6% to 381,555 comprising 280,206 KTM products, 67,462 from Husqvarna and 29,532 from GasGas. In addition, its European distribution network also sold 1852 MV Agusta machines and 2503 from Chinese partner CFMoto.The Indian market, supplied by Pierer’s production partner Bajaj Auto, accounted for almost 66,000 KTM and Husqvarna motorcycles.

"But whilst sales were up higher interest rates forced extended payment terms and greater discounts being granted to support both dealers and suppliers whilst the previously-reported implosion of the pedal bicycle and e-bicycle market resulted in a huge 32% decline in Pierer Mobility’s annual operating profit to £136.6m and pre-tax profit dived by 57.3% to £78.6m.

"That swallowed up Pierer's liquidity reserves, which accounts for the significant cost-cutting measures, including reduction in employee numbers in Austria, and the transfer some R&D activities to strategic partners Bajaj Auto and CFMoto.

"Pierer clearly hope this restructuring will help recover greater profitability. "

[The Spin Doctor]

And last month I covered KTM again:

"If you're a KTM fan, then there's word that The future's bright, the future's orange, with room for yet more machines in their ecosystem.

"The first is rumoured to be a 650 twin. Apparently it's being developed in partnership with the Indian manufactuer Bajaj who are responsible for the smaller 125 and 390 singles. Presumably to keep costs down, it's also to be manufactured by the Indian brand in India, positioning it as a direct rival to the Yamaha MT-07.

"This machine appears to be based on a modified twin-cylinder LC8C engine - currently used in the Chinese-manufactured 790 machines - but with a smaller 650 displacement rather than the original 800 cc. Frame and chassis components appear to be from the 790 Duke, with a more relaxed riding position. One report says it's directly targeted at Yamaha's successful MT-07 twin.

"There's less to say about second bike, which appears to be based on the 450NK, developed in partnership with CFMoto in China. The 450NK has recently launched in the UK, and cuts in under the £5000 mark, with the A2 compliant machine producing a claimed 46.3bhp at 10,000rpm.

"Should they appear, these two machines, along with the Chinese built 790, will plug the holes in KTM's model range, by offering competitively-priced mid-range bikes, and something other than the entry level bikes or the premium-priced, top-of-the-market offerings.

"Running a MotoGP team must be a serious drag on KTM's finances, which haven't been too stable over the last few years, not helped by expensive purchases during COVID of some e-cycle brands that have recently been dumped from their portfolio."

[mangocrazy]

How long before Bajaj perform a reverse takeover...?

[Supermofo]

How long before Bajaj perform a reverse takeover...?

I wondered that when KTM climbed into bed with them initially.

[Whysub]

I've never liked any of the KTM road bike so no great loss.

Liked my RC8 immensely, rode that to Slovakia, and then the following year to Croatia, Serbia, Bosnia. Never had a moments trouble with it, ever.

Nor the RC8-R that I had purchased 2 years later. Riding them back to back showed how good the standard RC-8 was, and how much better the R was.

Had to sell both when I moved from the UK. Due to the modifications on both, getting them onto Spanish plates would have been very, very expensive putting them back to stock, if not impossible.

One of the few bikes that I would buy one again.

[ogri]

Tbh i think they are a bit like jap bikes in the 70/80's you either got a good'un or you dindnt

[Pirahna]

Another KTM in trouble article:

KTM faces serious financial crisis and restructuring: GASGAS and Husqvarna may be in danger

https://motorcyclesports.net/ktm-faces- ... t=cmp-true

[Skub]

Another KTM in trouble article:

KTM faces serious financial crisis and restructuring: GASGAS and Husqvarna may be in danger

https://motorcyclesports.net/ktm-faces- ... t=cmp-true

That reads bleak. If Red Bull were to withdraw,or reduce their sponsorship from what is perceived as a failing brand,it would seem likely that'll be the end of the KTM Motogp dream.

[Yorick]

Another KTM in trouble article:

KTM faces serious financial crisis and restructuring: GASGAS and Husqvarna may be in danger

https://motorcyclesports.net/ktm-faces- ... t=cmp-true

That reads bleak. If Red Bull were to withdraw,or reduce their sponsorship from what is perceived as a failing brand,it would seem likely that'll be the end of the KTM Motogp dream.

Half of Moto3 teams run KTM engines.

[ChrisW]

They sponsor *so much* stuff that I'd be surprised if the KTM MotoGP effort was high on a list of potential withdrawals. Also I'd say that Red Bull IS it's sponsorship/marketing - start cancelling any significant bit of it and it harms itself.

[mangocrazy]

I would imagine that KTM's involvement in Moto3 (where they are competing with themselves on differently branded bikes) is a nice little earner and will be contibuting healthily to the positive side of the balance sheet for Pierer Mobility. It's a profit centre, not a liability.

As for MotoGP, I'd heard that Red Bull pick up the majority of the tab. Not sure how true that is.

[Whysub]

Interesting article on what teams Red Bull own, and what teams they sponsor.
https://www.yorkshireeveningpost.co.uk/ ... ip-4648241


KTM MotoGP and the Peugeot Rally team seem to be sponsored, and not owned like the football teams and Formula 1 teams.

[Skub]

It's amazing so much money is generated from a sugar loaded fizzy drink.

The first and only time I've tasted Red Bull was when I was handed a free can from Sean Emmett (remember him?) It tasted like pish to me.