KTM issues update in wake of Friday’s Regional Court ruling
KTM says it is “not letting off the throttle” into 2025 amidst its current financial crisis after Friday’s Regional Court ruling said the company could continue in its current form.
The Austrian automaker has racked up debts of at least 1. 8 billion euros, according to an ORF report on Friday, after filing for bankruptcy last month.
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 workers will have to wait at least until the end of January to receive their November and December salaries.
On Friday, in a Regional Court hearing, KTM was allowed to continue in its current form, while three parties have expressed interest in investing up to €700m as it presses on with 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, logo officials have said in the past that the programme will continue as planned.
This was followed by rumors in the media about a progress freeze on the RC16 2025.
KTM published a current scenario report suggesting 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 the competition there are ups and downs, audacity and disappointment, victories and defeats. 2024 is a year of conquests 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 from its customers. While demanding situations are part of any wonderful journey, we see them as an opportunity to move towards an even better future.
“It is no secret that KTM AG operates in a changing economic landscape. However, as our “READY TO RUN” mantra suggests, we use this time to realign, refuel and revitalize.
“KTM remains fully committed to delivering exceptional experiences to our current and future customers. We will continue to thrill and find our way to the top of the podium again.
“Racing is where we showcase our brand, our engineering and our love of hunting. Over the last year, our motorsport teams have continued to achieve wonderful things. We end 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. .
“Aside from racing, the KTM logo has also been incredibly active this year. The logo presented 59 new models, organized 3 launches in foreign media in the presence of 152 media partners, effectively organized 3 visits with 283 participants and returned to EICMA, the largest motorcycle show in the world, with a huge 1,635 m² stand with 17 new models. . KTM products.
“There has been a strong push behind these new motorcycles, as well as efforts to ensure we maintain momentum in the right areas. KTM is applying the same forward-thinking approach during this restructuring phase.
“Our goal over the next 90 days is to stabilise the business while setting the foundation for sustained growth and success.
“Throughout this period, KTM guarantees the continuation of motorcycles being delivered through our Authorised KTM Dealer network. The same goes for our spare parts, technical accessories, customer service support and warranties which remain unchanged, ensuring ongoing and unwavering support throughout this period.
“The work and preference for creating the latest bold, extreme and adventurous motorcycles continues. KTM is preparing to launch a pair of highly anticipated models, which will be available in racer showrooms in the first quarter of 2025. This, once again, shows our commitment to remaining one of the leading motorcycle brands. in Europe in the future.
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