KTM issues update following Friday’s regional 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 carmaker has racked up debts of at least €1. 8 billion, 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, less than the 500 initially planned through 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 at the regional court on Friday, KTM was allowed 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 then followed up by media rumours of a development freeze for the 2025 RC16.
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 complete 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 bumps, ruts and bumps, but we are letting off the accelerator.
“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 converting economic landscape. However, as our mantra “READY TO RACE” suggests, we use this time to realign, refuel and reinvigorate.
“KTM remains fully committed to delivering exceptional reports 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. .
“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’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 stabilize the business while laying the foundation for sustainable expansion 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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