KTM has announced that it will enter a 90-day self-administration period to restructure the company amid its current financial difficulties.
The Pierer Mobility group has decided to pause production of its bikes in January and February 2025 and it has already laid off hundreds of staff members.
KTM was reportedly seeking at least 100 million euros to continue its operations beyond 2024, a figure that did not meet the required funding target.
“Redimensioning the group should not only secure the continued existence of the KTM Group in the long term, but also create the basis for emerging stronger from the proceeding,” said Pierer Mobility in a statement.
“A redimensioning of production should lead to a gradual adjustment in excess stock at KTM and its dealers over the next two years. This will result in a reduction in operating performance at the Austrian sites totalling over one billion euro in the years 2025 and 2026.
“The restructuring process will result in additional potential losses, for example, due to one-off expenses such as necessary write-downs and costs for staff reductions as well as the shortfall in fixed costs due to the reduced operating performance and other costs arising from the restructuring process.
“Consequently, for the current 2024 financial year, the company expects a negative annual net result in the very high three-digit million range due to the aforementioned reasons.”
What does this mean for its MotoGP team?
Pierer Mobility group are adamant about continuing its MotoGP endeavours despite the company’s restructuring.
The higher-ups previously denied rumours that its primary MotoGP sponsor, Red Bull, could offer financial support.
Speaking in a statement alongside newly appointed Co-CEO Gottfried Neumeister, Pierer said: “Over the past three decades, we have grown to become Europe’s largest motorcycle manufacturer.
“We inspire millions of motorcycle riders around the world with our products. Now we are taking a pit stop for the future. The KTM brand is my life’s work, and I will fight for it.”
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