KTM situation update: “No consequences for customers”
KTM customers have “no need to fear any negative impacts” following the announcement earlier this week that Pierer Mobility – the parent company of KTM AG – are in a period of self-administration beginning Friday November 29, 2024.
“Nothing will change for our customers,” the management explained on Wednesday, 27 November, 2024. “We guarantee that we will continue to deliver motorcycles, spare parts and accessories under the usual conditions. There will be no irregularities – neither in the flow of goods nor in customer service.”
KTM is undergoing a restructuring phase over the next 90 days, amid huge losses and a financial situation which makes your jaw drop. The unsecured claims are reported to amount to 2.3 billion Euros which, in our understanding, is a figure under the value of the company assets by a considerable distance.
The Austrian company filed an application for insolvency proceedings for its subsidiary KTM at a regional court on Friday, November 29. KTM is applying to the court for self-administration restructuring proceedings which are said to provide the opportunity to continue to manage the assets under supervision and to restructure the KTM Group independently. By “resizing”, KTM Group should be secured in the long term, is the aim.
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All of this also does not affect the rolling out of new models in 2025, KTM say. That includes new bikes such as 125 and 390 Enduro R and the 390 Adventure models. These models will be delivered in the first quarter of 2025 KTM say, although they make no mention of the hugely popular (at recent motorcycle shows in Italy and the UK), Freeride E.
Through all this recent financial activity and statements from Pierer Mobility there is no mention of the other brands under the KTM AG umbrella, Husqvarna and GASGAS.
Either way it is reassuring to know the dealers and parts will be unaffected for those of us riding the orange, red and white bikes.
We expect some decisions or changes to come during or after this 90-day period but also assume all brands are affected equally and that “KTM” means all three.
Our understanding is racing and sport remains a priority for KTM and despite some changes during the second half of 2024 where Husqvarna and GASGAS Factory Racing teams evaporated – notably in MotoGP and Rally.
