KTM enters self-administration

Austrian motorcycle marque KTM has announced it has entered self-administration amid a financial crisis.

KTM is reportedly seeking at least 100 million Euros to continue operating beyond 2024 and has laid off hundreds of employees.

It could even be planning to pause bike production in January and February 2025.

KTM currently operates two MotoGP teams with the factory KTM squad backed up by Tech3.

Australia’s Jack Miller raced for the team over the last two seasons, but was let go in favour of promising youngster Pedro Acosta.

Both teams took part in last week’s post season MotoGP test.

KTM owner Pierer Mobility AG announced that the company’s management was expecting to be unable to secure the necessary financing in time and has started a formal restructuring process through self administration.

“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,” a Pierer Mobility statement said.

“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.”

Image: Gold and Goose

READ THE LATEST ISSUE OF AUTO ACTION HERE

Don’t forget the print edition of Auto Action available via subscription here. For more of the latest motorsport news, subscribe to AUTO ACTION magazine.