KTM releases update following Friday’s regional ruling
KTM says it will “not let gas through” until 2025, amid the existing currency crisis, after a regional court ruling on Friday said the company could continue in its current form.
The Austrian manufacturer has tallied up debts of at least €1.8 billion, according to a report from ORF on Friday, having entered self-administration last month to stave off bankruptcy.
Hundreds of employees have been laid off and another three hundred layoffs are expected, a figure lower than the 500 initially planned by KTM.
Production has been halted until the end of February, while staff are having to wait until at least the end of January to be paid their November and December salaries.
At a hearing before the regional court on Friday, KTM allowed it to continue in its current form, while three parties expressed interest in making an investment of up to €700 million to continue its restructuring.
A meeting of creditors will take a position on January 24, while its restructuring plan will be voted on at the end of February.
Little has been officially said about KTM’s allocation in MotoGP for 2025, senior logo officials have said in the past that the program will continue as planned.
This was followed by rumors in the media about a progress freeze on the RC16 2025.
KTM has published a report on the existing scenario, suggesting that it remains committed to its racing efforts in 2025, but does not directly mention MotoGP.
The full statement is as follows:
“’READY TO RACE’ is more than a slogan for KTM. It defines our existence. In competition there are ups and downs, audacity and disappointment, victories and defeats. 2024 a year of achievements but also of demanding situations for the company.
“Looking ahead to 2025 and beyond, there will still be jumps, ruts and bumps, but we’re letting the throttle pass.
“2024 has been a year for KTM, marked by ambitious innovation, exciting victories and unwavering determination on the part of its customers. While challenging situations are part of any wonderful journey, we see them as an opportunity to move forward toward an even better future.
“It’s no secret that KTM AG operates in a changing economic landscape. However, as our mantra “READY TO RUN” suggests, we use this time to realign, refuel, and revitalize ourselves.
“KTM remains fully committed to delivering exceptional reporting to our current and long-term customers. We will continue to vibrate and return to the most sensible step of the podium.
“Racing is where we show our brand, our engineering and our love of hunting. Over the past year, our motorsports teams have continued to achieve wonderful things. We finished the season with an impressive 341 FIM World Championship titles.
“The globetrotters’ calendars included more than 1,480 starts and gave us 246 podiums and 150 victories in disciplines. Sure, there were struggles and injuries (those happen with grass), but KTM impressively added another 11 hard-fought titles to the record. .
“Outside of racing, the KTM logo has also been incredibly active this year. The logo introduced 59 new models, held 3 foreign media launches in the presence of 152 media partners, effectively organized 3 visitor events with 283 attendees and returned to EICMA, the largest motorcycle fair in the world, with a huge 1,635 m² stand and 17 new KTM products.
“There’s been a lot of momentum behind those new bikes, as well as efforts to make sure we keep our momentum in the right areas. KTM is applying the same forward-thinking technique in this restructuring phase.
“Our goal over the next 90 days is to stabilise the business while setting the foundation for sustained growth and success.
“During this period, KTM promises continuity of motorcycle deliveries through our network of legal KTM dealers. The same applies to our spare parts, technical accessories, customer service and warranties that remain unchanged, ensuring uninterrupted support and impeccable during this period.
“The work and the desire for the latest edgy, extreme and adventurous motorcycles goes on. KTM is preparing the launch of a brace of highly anticipated models, which will be in dealer showrooms in the first quarter of 2025. This again shows our pledge to remain as one of Europe’s leading motorcycle manufacturer well into the future.”
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