Is KTM in financial trouble?

[Pirahna]

KTM, Husqvarna & Gas Gas have recalled 20,000 bikes with faulty front brake calipers. That won't be cheap.

https://www.rideapart.com/news/759715/k ... irt-bikes/

[Yorick]

KTM, Husqvarna & Gas Gas have recalled 20,000 bikes with faulty front break calipers. That won't be cheap.

https://www.rideapart.com/news/759715/k ... irt-bikes/

Mine's in that list

[Pirahna]

KTM, Husqvarna & Gas Gas have recalled 20,000 bikes with faulty front brake calipers. That won't be cheap.

https://www.rideapart.com/news/759715/k ... irt-bikes/

Mine's in that list

Best stop riding and get it checked.

[Yorick]

KTM, Husqvarna & Gas Gas have recalled 20,000 bikes with faulty front brake calipers. That won't be cheap.

https://www.rideapart.com/news/759715/k ... irt-bikes/

Mine's in that list

Best stop riding and get it checked.

After 2 years of abuse, I think it's OK

And too bloody expensive to go over to Gran Canaria.

[mangocrazy]

Crash.net is reporting that Bajaj Auto has taken out a €566 million loan to cover the cost of KTM's creditor repayments on or before 23rd May.

So the high wire balancing act continues...

https://www.crash.net/motogp/news/10707 ... p-save-ktm

[mangocrazy]

A trifle premature, methinks? KTM aren't out of the woods yet...

https://www.ktm.com/en-gb/ktm-world/new ... -back.html

[ChrisW]

A trifle premature, methinks? KTM aren't out of the woods yet...

https://www.ktm.com/en-gb/ktm-world/new ... -back.html

Interesting that all the new bikes they're trailing in that message are the bottom end of the capacity range.

I do still keep wondering what's going to end up happening with the often-mentioned extra year's surplus stock of the existing range of bikes.

[mangocrazy]

A trifle premature, methinks? KTM aren't out of the woods yet...

https://www.ktm.com/en-gb/ktm-world/new ... -back.html

Interesting that all the new bikes they're trailing in that message are the bottom end of the capacity range.

I do still keep wondering what's going to end up happening with the often-mentioned extra year's surplus stock of the existing range of bikes.

yes, that's one of several elephants in the room...

[Horse]

A trifle premature, methinks? KTM aren't out of the woods yet...

https://www.ktm.com/en-gb/ktm-world/new ... -back.html

"WE HIT A BUMP"

FFS that's a marvel of understatement!

[Bigjawa]

A trifle premature, methinks? KTM aren't out of the woods yet...

https://www.ktm.com/en-gb/ktm-world/new ... -back.html

Interesting that all the new bikes they're trailing in that message are the bottom end of the capacity range.

I do still keep wondering what's going to end up happening with the often-mentioned extra year's surplus stock of the existing range of bikes.

Cheap Indian built stuff. Trying to do what Honda did with small bikes in the 60s. Without the C50, we wouldn't have the Fireblade.

[Pirahna]

This article does a decent job of explaining the Bajaj takeover.

https://www.rideapart.com/features/7604 ... -takeover/

[mangocrazy]

So by the sounds of that, Bajaj will be the entity that decides whether KTM's MotoGP activites carry on are canned. Not Beirer Mobility....

[ChrisW]

So by the sounds of that, Bajaj will be the entity that decides whether KTM's MotoGP activites carry on are canned. Not Beirer Mobility....

They've added Bajaj logos to the front of the KTM bikes, so who knows?

[The Spin Doctor]

AFAIK - and I'm sure there are folk here who can confirm or put me right - the penalty clause for pulling out of MotoGP mid-season are huge. It was originally stated that the team would leave at the end of the 2025 season when the existing contract is up, and they canned development of the 2025 machine and sacked Jezza McWilliams, the test rider. But almost immediately the race department (pre-Bajaj takeover) was making enthusiastic noises about 2026 - I doubt that went down well with the creditors.

Right now, it appears that Bajaj have fronted up the cash to prevent the administrator liquidising the companies, but not to restart production. There was word a week or so back that a financial firm was sounding out potential investors though now Bajaj have control, that may not be a viable option any more.

One of the issues appears to be that some of their external suppliers aren't prepared to let them run up another line of credit, not when they've taken a 70% hit on what they were owed. They also have that small problem of 20,000 unsold bikes. The fact they sold 370-odd in the UK last month won't have made a dent in that figure.

[mangocrazy]

One of the issues appears to be that some of their external suppliers aren't prepared to let them run up another line of credit, not when they've taken a 70% hit on what they were owed.

Yes, I can't imagine the likes of Brembo being overly pleased with taking a 70% hit on items delivered but not (and never will be) paid for. Given that all the 790 and above models are fitted with Brembo calipers and master cylinders that's a serious loss.

Could KTM source Brembo stuff via an intermediary? They'd pay more for them, of course.

[Pirahna]

One of the issues appears to be that some of their external suppliers aren't prepared to let them run up another line of credit, not when they've taken a 70% hit on what they were owed.

Yes, I can't imagine the likes of Brembo being overly pleased with taking a 70% hit on items delivered but not (and never will be) paid for. Given that all the 790 and above models are fitted with Brembo calipers and master cylinders that's a serious loss.

Could KTM source Brembo stuff via an intermediary? They'd pay more for them, of course.

I've been perusing the KTM website, the 2024/2025 790 and 990 models have KTM branded callipers, the 1290/1390 models have Brembo.

The 990 Duke is on my shortlist of potental bikes but who knows if there will still be a dealer network in a years time.