[timuseravan]

A crisis of this magnitude does not materialize overnight. This must have been some years in the making. Makes me wonder why KTM thought it prudent to invest in yet another bike brand - MV Augusta just 6 months backs.
And to think there were rumors of them acquiring Ducati a couple of years back.

[nitro.1000bhp]

Originally Posted by ent!ty

It only makes sense that KTM is facing this crisis, the major factor being the catastrophic camshaft issues in their bread and butter multi cylinder bikes since around 2019. Adding fuel(pun intended) to the fire, their lackluster and abysmal attitude towards handling the same didn't go well with the owners, of course.

Open any video or post regarding their new launches and glance over the first few comments, you will have a laugh and then some. Anybody can sense the distrust and sourness in the current fleet of customers who have gone through the ordeal. It's sad to see KTM at this juncture, but its their own sowing that's bearing the fruit now. Hope they course correct and mend their image while they have time.

The cam shaft issues are squarely to blame here combined with their relentless acquisition of dead or dying brands and simply repainting them and selling it in the same markets! Who were they trying to fool here? Today's customers are well informed but these MBAs at these big corps are so out of touch, they think they know better.

GM, British Leyland and so many others tried this route of amassing multiple brands but it all went to sh*t and yet these new age big corps don't seem to be learning any lessons from history.

[Flyingdutchman]

If Bajaj hadn't invest in KTM initially in 2007, KTM would have gone bankrupt long back. Regardless of thin margins, It was Bajaj who made it possible for KTM to mass produce Smaller (so to speak) displacement Duke and RC range. Duke, RC 125/200/250/390 is the reason KTM has survived this long; all thanks to Bajaj's excellent scale of economy. People in EU are shifting towards entry level (A2) bikes again. Middleweight category has some volumes but little class naked is as good as dead.

Bajaj can really turnaround things here but Austrians won't let go of the control that easily. They would rather look for debt than coughing up the equity. This is where things will be complicated for KTM. With €1.5 B loss on PLS, convincing lenders; especially European lenders, to hand out another €100m won't be easy.

The Chinese are very smart when it comes to investments. They ask foreign players to form JV while operating in China and always become majority shareholder of those JVs. They never compromise on that, none of that VW/Mercedes Benz, Audi, Hyundai, Honda India Pvt. Ltd. trick MNCs use in India to keep control with parent group. Take BAIC-Benz, SAIC-VW, CFMoto-KTM, Chery-JLR for example in China. Now that CFMoto is already a majority shareholder in Chinese JV, they will be eyeing the ownership in the parent group now. Same thing happened with Benelli, it's entirely owned by Qianjiang now.

Bajaj is the only viable option for KTM. Hope things work out for both parties concerned.

[masterChief007]

As a person eyeing and almost about to confirm the KTM 390 Adv-X (399) - (as the seat height was my only grouse), this is of concern. I don't want a defunct company motorcycle however good it is to enter my garage and make life more complicated than it should be. I just wish that Bajaj pick it up, anyways let's see what turns up. I already have a ford car (though no reason to complain about the service support), a CI bullet (RE service centers raise their hands all the time !!) and don't want another soon to be closing motorcycle to enter my garage.

[saikishor]

Bajaj should step in and acquire the whole thing. If it wasn't for the Bajaj partnership, KTM wouldn't have seen the success of their 390 and smaller models. Bajaj has the money, and they will also gain access to KTM's big bike wizardry and tech.

To my eyes, KTM's only saviour is Bajaj.

[VijayAnand1]

Bound to happen, just like MV Agusta. Let me add in a few markers. It's not all about camshaft issues and the sourness that's left behind -- it's a crucial one, but not a single defining factor.

It's about the demand in the European market right now. The European market as a whole is shifting mostly to electric. Right from trucks to cars everything is uber-electrified and the pan-European, especially Germany being the torchbearer has so much significant impact on the neighboring pan-European counterparts when it comes to electrification. Things aren't as rosy, when we compare India to the European counterparts, Europe is light-years ahead in terms of electrification, technology and also a keystone in implementing policies.

Unfortunately everything is currently working against KTM. This all started to worsen when they entered MotoGP. For the less-informed, it takes more than EUR15 MILLION (EUROS) per season to host a MOTOGP race. Add in the other miscellaneous expenses, you're looking north of 17 to 20-ish ballpark, all this money has to come from somewhere -- investors, stock buybacks, sponsors etc. Why do you think Suzuki withdrew from MotoGP after entering MotoGP after a 4 year hiatus and again quitting in 2022. Remember KTM is only a fraction of Suzuki's long-winded roots both financially and structurally.

KTM just like another, a company which was owned by a single man which was acquired by Stefan in the first place to save it from bankruptcy. Bajaj though helped them with the financial and manufacturing wherewithal, there's absolutely nothing Bajaj in a KTM, especially when considering the 390s, which was a pure dirt-bike motor well before KTM entered in partnership with Bajaj.

Stefan wanted manufacturing prowess, Bajaj wanted engineering prowess, Bajaj had the money, KTM had the technology, both amalgamated to an excellent proposition and in the end worked well for investors. If not for the 390 and the iterations based on this platform 200, 250 etc , KTM wouldn't have tasted the success it has tasted, and would have been in deep soup, well while back.

Remember it's definitely not homestretch for KTM -- yet. The bridge financing it requires to the tune of Rs. 900 odd crore (piece a cake for Bajaj) and some critical restructuring should fire up the cylinders for KTM which currently is under ventilator support.

KTM ain't gonna die folks, that's for sure.

Cheers!
VJ

[saikishor]

Originally Posted by saikishor

Bajaj should step in and acquire the whole thing. If it wasn't for the Bajaj partnership, KTM wouldn't have seen the success of their 390 and smaller models. Bajaj has the money, and they will also gain access to KTM's big bike wizardry and tech.

To my eyes, KTM's only saviour is Bajaj.

I am adding to my post. I have another alternative to this mess. KTM's big bikes didnt really carve a name for themselves(say, like the Tiger, or 1250GS). If incase Bajaj acquires KTM entirely, it will only be a matter of time before they start local production of their big bikes. And if incase such local production starts, I feel it will totally be a revolution in the Indian big bike scene. A global superbike made in India at an obvious competition undercutting price(since it will be produced locally). Bajaj has the potential to make this revolution happen, exactly how they did 11 years back with the 390 Duke.

This is just an alternative thought of mine. All feasibilities aside, I hope something like this actually happens. If such a thing happens it will spell doom for all parallel twin sportsbikes in India IMO.


Another alternative: If incase KTM goes bankrupt, I am assuming nothing will affect their Indian operations. All KTM models available for sale(excluding big bikes) are made in India and have been massively popular for years for support to continue. This is the last and worst case scenario, but I dont think it will go to such an extent.

[tatsago]

Originally Posted by saikishor

I am adding to my post. I have another alternative to this mess. KTM's big bikes didnt really carve a name for themselves(say, like the Tiger, or 1250GS).

KTM's big adventure bikes arent really visible here in India. The 1290 adventure is very capable beast. I would put it in Multistrada territory rather than compare with Tiger or R1250GS.

IMHO Bajaj could have got more out of their KTM investment and gone beyond just becoming a manufacturing partner like what TVS is for BMW. Bajaj also focused on the KTM 200/390 for the domestic market and should have also got invloved in the middleweight and liter class, instead of letting KTM go the CFMOTO route.

[Axe77]

This just came out about an hour ago. Press release from the top bosses and the latest in the saga.

Per the public release, they will be submitting themselves to legal restructuring proceedings with self-administration. Expected to be a 90 day process.

https://youtu.be/1P8uT_7JGNM?si=mco47ORtBszaRr31

Here is more from the official press release.

Austria – 26 November, 2024 – KTM CEO Stefan Pierer and Co-CEO Gottfried Neumeister today addressed the company's more than 5,000 employees, unveiling a comprehensive plan to navigate the current financial challenges and ensure a robust future for KTM.
Making KTM robust for the future

Stefan Pierer, CEO of KTM AG: “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.”

KTM, which has grown from 160 employees and a production volume of 6,000 units in 1992 to a capacity of up to 1,000 motorcycles per day, is now facing significant hurdles. To address these, KTM will initiate a legal restructuring proceeding with self-administration. The application will be submitted on Friday, 29 November, with the goal of concluding the process within 90 days.

Since September 2024, Gottfried Neumeister has joined the Executive Board as Co-CEO. Stefan Pierer: “Gottfried Neumeister has brought impressive experience and a breath of fresh air and has made a significant contribution to addressing the current situation. I am convinced that together we will get the company back on track for success.”

Gottfried Neumeister, Co-CEO of KTM AG: “The enthusiasm of our employees is our most important competitive advantage. Their passion is the reason why KTM is globally synonymous with peak performance. We build our motorcycles reliably and robustly for every race, for every terrain. Now it’s about making the company robust. Robust for the future. So that we can quickly focus again on what we do best: building the coolest motorcycles in the world.”

Pierer and Neumeister emphasized the importance of the employees' commitment and support during this period. "Together, we have made KTM a success story, and together, we will carry KTM into the future," they stated.

For more information and to watch the full statement by Stefan Pierer and Gottfried Neumeister, please visit the link HERE.

[sab3r2th]

Originally Posted by VijayAnand1

Why do you think Suzuki withdrew from MotoGP after entering MotoGP after a 4 year hiatus and again quitting in 2022. Remember KTM is only a fraction of Suzuki's long-winded roots both financially and structurally.

Just a minor correction but Suzuki's withdrawal from MotoGP was only tangentially related to costs.
One reason was that the Japs saw that there was no increase in sales after the MotoGP championship win. And they were like "what's the point then"?
The second (alleged) reason was that Suzuki was caught in an emissions cheating scandal and were (allegedly) forced by Toyota to abandon the MotoGP program in view of the impending lawsuits.

[saikishor]

Originally Posted by Axe77

This just came out about an hour ago. Press release from the top bosses and the latest in the saga.

Per the public release, they will be submitting themselves to legal restructuring proceedings with self-administration. Expected to be a 90 day process.

https://Youtu.be/1P8uT_7JGNM?si=mco47ORtBszaRr31

Here is more from the official press release.

I understood nothing about what they were trying to say. I would really appreciate if someone could explain in simpler words.

Is it that KTM is filing for bankruptcy, or are they liquidating their share? I just didnt understand.

[Axe77]

Originally Posted by saikishor

I understood nothing about what they were trying to say. I would really appreciate if someone could explain in simpler words.

Is it that KTM is filing for bankruptcy, or are they liquidating their share? I just didnt understand.

Well it’s under Austrian law but I reckon a company that’s on the brink of bankruptcy may submit itself to a voluntary process such as this. What it likely offers them is a defined period (seemingly 90 days in this case) to find some sort of business or capital restructuring solution that will ensure they remain a ‘going concern’ when they emerge out of the process and are not pushed into insolvency.

During that period, they will likely have protection from any adverse legal action by a third party creditor or similar from taking enforcement action against the company or their assets.

Self administration perhaps means that during this period the business will continue to be run by the company’s management and not a committee or representative appointed by its creditors.

I don’t know Austrian legal framework specifically so just making some educated guesses based on the phraseology used in the PR and its likely broad contours basis what I’d expect in any typical legal framework. The specifics nuances may of course vary from jurisdiction to jurisdiction.

[pedrolourenco]

Originally Posted by Senotrius

CF moto bikes could do well here, provided Bajaj takes responsibility for sales and service, in an official manner. Their models look good, plus on paper feels well specced .

They not only look good but are actually good if you go by the reviews from Europe and USA.

Originally Posted by masterChief007

As a person eyeing and almost about to confirm the KTM 390 Adv-X (399) - (as the seat height was my only grouse), this is of concern. I don't want a defunct company motorcycle however good it is to enter my garage and make life more complicated than it should be.

I don't think they will become defunct. If KTM goes bankrupt, the brand, designs and manufacturing facilities will bought by someone. KTM have already made a name for themselves so the brand won't die.

[mp417]

Austrian motorcycle manufacturer KTM AG, which also has large scale operations in India through its subsidiary operated by Bajaj Auto, has just filed for bankruptcy. In other words, its liabilities are now more than its assets. The company just announced an emergency restructuring on November 29th 2024, which is meant to give it 90 days of time to raise money and avoid total shutdown.

Full news here.

https://www.cartoq.com/bike-news/ktm...restructuring/

The India Operation is supposed to remain unaffected. I'm sure this will a big impact for enthusiastic motorcyclist. Recently KTM has launched multiple big bike line up. New Adv 390 is just round the corner.


Bajaj Auto’s statement on KTM India’s operations,
It is to be noted that the aforesaid matter has a bearing on the business of Pierer Mobility AG/KTM AG that is run out of Austria. The KTM business that is run out of India (domestic, select export markets) for which products are co-developed by KTM & Bajaj and manufactured and sold by Bajaj Auto continues to operate in the normal course during this period. The KTM and Husqvarna brands are of strategic importance and constitute an important part of Bajaj Auto’s premium motorcycles business in India. Having registered our highest ever volumes sold under these brands in the country in the last financial year, Bajaj Auto remains strongly committed to the sustained growth of this business and is working closely with its channel partners.

[kirans]

You can hear more in the official message here in the link. But it seems like a lot of cover up to the issues in the past. Hopefully they clean up their act and continue to build motorcycles, otherwise it will likely be taken over by someone else and just retain the brand name. With a short time frame left for petrol engines of perhaps a decade and a half at most, these are just the sort of roadblocks that can completely shut a company down.

https://www.youtube.com/watch?v=1P8uT_7JGNM