KTM’s problems come on track after Friday’s regional court 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 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, senior logo officials have said in the past that the programme will continue as planned.
This was followed by rumors in the media about a freeze on RC16 2025 progress.
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.
“Heading into 2025 and the future, there are more jumps, ruts, and bumps ahead – but we are not letting off the throttle.
“2024 has been a remarkable year for KTM, marked by bold innovation, thrilling victories, and unwavering customer dedication. While challenges are part of any great journey, we see them as an opportunity to accelerate toward an even brighter 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 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 passion for the chase. Over the past year, our motorsport teams continued to achieve greatness. We started the season with a staggering 341 FIM World Championship titles.
“The globe-trotting calendars involved more than 1,480 race starts and brought us 246 podiums and 150 wins across various disciplines. Of course, there were hardships and injuries—these go with the turf—but KTM impressively added 11 more hard-fought titles to the record.
“Off the racing line, the KTM brand has also been extremely active this year. The brand unveiled 59 new models, hosted three international media launches with 152 media partners in attendance, successfully pulled off three customer events with 283 participants, and returned to EICMA, the world’s largest motorcycle show, with a massive 1,635 m² booth along with 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.
“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 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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