Is KTM in financial trouble?

[mangocrazy]

With the benefit of hindsight, manufacturers ramping up demand to cater for an artificial demand spike during Covid was the catalyst. Keeping production at pre-Covid levels and not chasing the short term dollar would have served KTM (and a lot of cycle manufacturers) far better.

[Sadlonelygit]

With the benefit of hindsight

None required imo. Anybody who thought that COVID levels of sale would continue (in any industry) was living in lala land.
A friend was importing PPE for Scottish NHS direct from the manufacturer, had to rent a plane to bring it in. He was continually monitoring mortality levels (a little morbid, but hey ho) to know when to stop the hire on the plane.
It does seem that KTM threw QC out the window in the charge for production numbers and profit, and now it's biting them on the arse.
A lack of customer support for a large manufacturer hurts but they usually weather the storm (Honda vf750), but a specialist small volume manufacturer, it could spell disaster. They'll always have a loyal mx/enduro base, but I really think they have screwed up their road bike dept.

[mangocrazy]

With the benefit of hindsight

None required imo. Anybody who thought that COVID levels of sale would continue (in any industry) was living in lala land.
A friend was importing PPE for Scottish NHS direct from the manufacturer, had to rent a plane to bring it in. He was continually monitoring mortality levels (a little morbid, but hey ho) to know when to stop the hire on the plane.
It does seem that KTM threw QC out the window in the charge for production numbers and profit, and now it's biting them on the arse.
A lack of customer support for a large manufacturer hurts but they usually weather the storm (Honda vf750), but a specialist small volume manufacturer, it could spell disaster. They'll always have a loyal mx/enduro base, but I really think they have screwed up their road bike dept.

Very true, but it's different for a sole trader importing batches of stuff (manufactured by someone else), compared to a manufacturer who has to make one, two and possibly three year production forecasts. Production lines need to be reconfiguread, stock levels increased etc. etc. But they undoubtedly got it badly wrong.

[Skub]

Quote from article.

In this interview an interesting question arose regarding customer and dealer complaints regarding product quality, a flashpoint of late, though Trunkenpolz dove right in admitting that quality problems did arise during Corona-induced overproduction and parts supply issues, which caused nearly complete units to be taken off the production line and stored until the parts arrived, then moved back into production. “A motorcycle that is assembled like this ends up in the warranty statistics 90 percent of the time,” he admits.

Based on the above statement from Pierre group board member Trunenpolz,there will be a lot of out of warranty KTMs out there in the used market that will continue to do damage to the brand's reputation. All that isn't going to be solved overnight unless KTM make a commitment to all owners affected.
Even if they started making perfect bikes from tomorrow isn't going to offset brand damage any time soon. Getting into bed with the Chinese does little to make me want a KTM at the moment. One out of warranty would be a no no.

[The Spin Doctor]

A lack of customer support for a large manufacturer hurts but they usually weather the storm (Honda vf750), but a specialist small volume manufacturer, it could spell disaster.

Biggest manufacturer in Europe now.

The top-dollar purchase of the electric bicycle manufacturers when they were booming followed by a collapse of sales when we came out of COVID and flogging them off again for peanuts almost certainly hurt KTM more than they care to admit.

One rumour is that Husqvarna will convert to an e-cycle brand - they had a name change recently. I've never seen the business case for their restyled KTMs as a separate brand.

[Noggin]

KTM announce massive price cuts to shift old stock!
£3k off a 1290
£2k off a 890
It's almost like they dgaf about loyal customers who shelled out RRP

I wonder if they'll have any discounted ones left in the spring!! I was going to head to them to see what's about!!

[Sadlonelygit]

A lack of customer support for a large manufacturer hurts but they usually weather the storm (Honda vf750), but a specialist small volume manufacturer, it could spell disaster.

Biggest manufacturer in Europe now.

COUGH.....Piaggio........cough!

[The Spin Doctor]

A lack of customer support for a large manufacturer hurts but they usually weather the storm (Honda vf750), but a specialist small volume manufacturer, it could spell disaster.

Biggest manufacturer in Europe now.

COUGH.....Piaggio........cough!

Back in 2017, Leigh Turner - the UK Ambassador to Austria and UK Permanent Representative to the United Nations and other International Organisations in Vienna - wrote a blog where he listed the five largest motorcycle manufacturers in Europe:

"...if you count down the top five motorcycle firms in Europe, you find Triumph (based in the UK) at number five; BMW (Germany) at four; and Piaggio and Ducati (both Italy) at three and two.

"The biggest-selling motorcycle company in Europe is KTM, based in Mattighofen west of Linz."

It's on the Government's Foreign and Commonwealth Office website:

https://blogs.fcdo.gov.uk/leighturner/2 ... 0of%20Linz.

[Sadlonelygit]

Biggest manufacturer in Europe now.

COUGH.....Piaggio........cough!

Back in 2017, Leigh Turner - the UK Ambassador to Austria and UK Permanent Representative to the United Nations and other International Organisations in Vienna - wrote a blog where he listed the five largest motorcycle manufacturers in Europe:

"...if you count down the top five motorcycle firms in Europe, you find Triumph (based in the UK) at number five; BMW (Germany) at four; and Piaggio and Ducati (both Italy) at three and two.

"The biggest-selling motorcycle company in Europe is KTM, based in Mattighofen west of Linz."

It's on the Government's Foreign and Commonwealth Office website:

https://blogs.fcdo.gov.uk/leighturner/2 ... 0of%20Linz.

And yet last year KTM sold 386000 odd bikes compared to 430000 odd for Piaggio.

[The Spin Doctor]

And yet last year KTM sold 386000 odd bikes compared to 430000 odd for Piaggio.

Hmm. Don't know, then.

All I can say is that Pierer self-reported themselves as the biggest manufacturer in Europe based on last year's figures.

[Mr. Dazzle]

Probably some wiggling around what's a bike versus what's a powered two wheeler.

[Supermofo]

And yet last year KTM sold 386000 odd bikes compared to 430000 odd for Piaggio.

Hmm. Don't know, then.

All I can say is that Pierer self-reported themselves as the biggest manufacturer in Europe based on last year's figures.

Could be total bikes sold vs registered. Some KTM will be off road/competition only so won't be registered presumably?

[Yorick]

Blimey. Now they're trying to rebuild their reputation. Bet this is costly

https://www.motorcyclenews.com/news/202 ... ue-update/

[ChrisW]

Sales must have properly dropped off a cliff.

[Yorick]

Sales must have properly dropped off a cliff.

They've been shamed into doing the right thing.

[Supermofo]

Sales must have properly dropped off a cliff.

They've been shamed into doing the right thing.

Yup sounds like a double whammy of even more than normal KTM unreliability in what is probably one of their biggest volume sellers and them being in trouble on top of that. That engine isn't only in the 790, 880 and 990 (??) but also the Chinese versions like CF Moto etc. They got away with the odd oil/water leak, dash failure in the 790, but engine replacement is a whole new ball game.

[mangocrazy]

I really fancied the Duke 890 R (and still do) but the continuing uncertainty over affected models puts me off. And not just me, by the sound of it - there are plenty of brand new 890 R models on dealer floors.

[Pirahna]

Pieter cuts board members for six to two and reduces revenue forecast.

https://www.rideapart.com/news/738332/p ... s-revenue/

[The Spin Doctor]

I've even seen a very speculative suggestion that Pierer could sell out to Bajaj...