Is KTM in financial trouble?

[mangocrazy]

While I understand why they are doing it, rebranding the Moto2 and Moto3 GP teams from GASGAS/Husqvarna back to KTM isn't going to make their money problems go away.

[KungFooBob]

I'd imagine the sponsors foot a fair chunk of the cost of racing.

[Skub]

I'd imagine the sponsors foot a fair chunk of the cost of racing.

With sponsors being notoriously touchy,how long will they wish to associate with a factory potentially going bust?

[mangocrazy]

I know KTM say they need to race in order to sell the brand, but I do wonder whether that's a bit of PR spin. I can't imagine it would be cheap to break their contract with Dorna, and perhaps there's little difference in the cost of buying themselves out of it vs the cost of racing, but with greatly reduced development.

It's not unknown for Dorna to funnel resources to struggling teams that they deem important for the show/series. With the Japanese bikes still seemingly all at sea, Aprilia being the perennial plucky little underfunded underdog that occasionally punches above its weight and KTM so publicly imploding next year could be even more of a Ducati one-make cup unless fairly drastic measures are taken.

What those measures would be, I have no idea.

[Horse]

https://www.visordown.com/news/breaking ... ld-be-axed

Excerpts:

KTM’s ongoing financial problems could result in the loss of its entire Grand Prix racing program, if reports from AKV Europa are correct

A creditors’ meeting was held on Friday regarding KTM’s solvency proceedings stating that the Austrian brand’s MotoGP project is “planned” to be shelved in a bid to reduce costs.

Despite KTM’s claims that its racing programs were safe from any cost-cutting measures, AKV Europa, claims differently, saying “In order to reduce costs, the withdrawal from MotoGP Moto3/Moto2 is planned”.

AKV is an “independent, state-privileged creditor protection organization” according to its website, which, alongside Citibank, is helping KTM (and its parent company PMG) to get the brand back on an even keel.

The news that specifically relates to KTM’s Grand Prix racing exploits comes from a report published today, that outlines what went on in the first creditor meeting. Alongside a withdrawal from Grand Prix racing, AKV also calls for relocation of production to reduce costs, and calls for clearance sales at KTM dealers to help clear the backlog of unsold bikes.

[ChrisW]

I know KTM say they need to race in order to sell the brand, but I do wonder whether that's a bit of PR spin. I can't imagine it would be cheap to break their contract with Dorna, and perhaps there's little difference in the cost of buying themselves out of it vs the cost of racing, but with greatly reduced development.

I've never been sure how effective their presence in MotoGP has been in selling, say, SuperDukes and 7/8/990s - certainly compared to Moto3 and MX helping to sell smaller capacity / off-road competition stuff.

[mangocrazy]

Despite KTM’s claims that its racing programs were safe from any cost-cutting measures, AKV Europa, claims differently, saying “In order to reduce costs, the withdrawal from MotoGP Moto3/Moto2 is planned”.

AKV is an “independent, state-privileged creditor protection organization” according to its website, which, alongside Citibank, is helping KTM (and its parent company PMG) to get the brand back on an even keel.

The news that specifically relates to KTM’s Grand Prix racing exploits comes from a report published today, that outlines what went on in the first creditor meeting. Alongside a withdrawal from Grand Prix racing, AKV also calls for relocation of production to reduce costs, and calls for clearance sales at KTM dealers to help clear the backlog of unsold bikes.

It's debatable whether that kind of cost cutting, fire sales and total withdrawal from MotoGP/Moto2/Moto3 would have the (alleged) desired effect to get the brand back on its feet, or whether it's just a means to try and salvage something for the creditors. There would also be penalties from Dorna for any kind of early exit. It would decimate Moto3.

[ChrisW]

salvage something for the creditors.

Maybe that's where it is now?

[Horse]

salvage something for the creditors.

Maybe that's where it is now?

Is "relocation of production" a euphemism for 'sell assets and rights to the Chinese"?

[Bustaspoke]

Is "relocation of production" a euphemism for 'sell assets and rights to the Chinese"?

Or India (Bajaj)?

[Horse]

Is "relocation of production" a euphemism for 'sell assets and rights to the Chinese"?

Or India (Bajaj)?

Ah, I'd forgotten that connection!

[mangocrazy]

I think this part of the article gives a clue:

AKV is an “independent, state-privileged creditor protection organization” according to its website, which, alongside Citibank, is helping KTM (and its parent company PMG) to get the brand back on an even keel.

So under the guise of trying to help KTM and 'get the brand back on an even keel' AKV are asset-stripping to refund creditors. That's the kind of help you really don't need. It looks like KTM's fate is now out of their own hands and the vultures are circling.

[Horse]

It might be the help the creditors need.

[mangocrazy]

Outcomes from a creditor meeting earlier today:

https://youtube.com/clip/Ugkxq7rNinxVsG ... F0sTqZxrxL

[mangocrazy]

Yeah, at the moment it's all smoke and mirrors, bluff and counter-bluff.

[Pirahna]

KTM out of MotoGP at the end of 2025, allegedly. Lewis Hamilton to invest, allegedly, and other stuff.

https://www.crash.net/motogp/news/10617 ... anned-2026

[Skub]

It makes sense,since 2027 heralds the advent of the new rules and regs. It's a safe bet KTM are not in a position to be spending millions to develop a new machine and at the same time allows them to at least be on the grid for next season. Compromise city.

The Lewis Hamilton thing is anyone's guess.

[Horse]

Lewis Hamilton to invest, allegedly, and other stuff.

Hasn't that one been denied? *Cough* ... After I posted about it *Cough'?*

[Skub]

Lewis Hamilton to invest, allegedly, and other stuff.

Hasn't that one been denied? *Cough* ... After I posted about it *Cough'?*

Might be a politicians denial. Lewis never had sex with that superduke....

[ChrisW]

Maybe not completely made-up press stuff? Sounds like talks are actually happening, at least:

https://www.visordown.com/news/ktm-moto ... s-hamilton