[Shonith]

I hope bajaj takes over ktm. I for one don't want cf moto take over KTM. 790/890 are made in china and have poor reputation due to the camshaft failures that has plagued models from several MY. Even their old models like the 690smc aren't trouble free although I don’t think its Ktm's fault may be people just rip the crap out of a brand new bike.

At the brink of bankruptcy they decided to launch their big bikes in India, when they had well over 10yrs to do so

[alphamike_1612]

Just to clarify the news.

KTM has not filed for bankruptcy.(yet)

The parent company, Pierer, might become bankrupt. It's right at the edge of insolvency.

They have now entered into a self administered 90 day restructuring period in an attempt to better their finances.

If they fail to restructure within this period, then they file for insolvency.

The Cartoq headline is misleading at best.

[Samarth 619]

I don't see the name "KTM" dying anytime soon. The ownership may see a drastic change, the strategy may see a big redirection. Worst case scenario, some other corporation purchases the brand that's synonymised with madness(in a positive angle) and relaunches it.

In every segment where KTM is present, what I see is a unique machine that does what nothing else quite does. The USP is present, no doubt. Where I see a problem is, quality and marketing.
I own the 2013 Duke 390, due for replacement soon but I see nothing else replacing it (although I don't see any significant quality issue with my bike at all, personally).


However, the following can be noted regarding KTM's marketing for now:-

1. Indian KTM sales (domestic) is also going through a bad sales phase (Source: Rushlane) with every bike except the 250 series going down in sales.
200 series, the oldest in the Indian range, has now lesser sales than the 390 series.

2. Make in India, sell abroad policy gives them opportunity for huge profits, if they can maintain the quality and reputation. So far, the latter they could not, if forums are to be believed.

3. Forums abroad are filled with reliability complaints for mostly all the KTMs, Indian made, or made abroad. Case in point, the Duke 890's cam issues and all.

4. Their premium offering, the Superduke 1390R, is more expensive than some litre class bikes which often make more power and have 2 more cylinders. Plus, their decision to have a separate, chargeable Tech pack was not well received anywhere.


If I had to advise KTM anything, it would be compromise a bit, in terms of product placement, like Yamaha did by launching the R7. Try to focus on lesser costs, smaller price, reasonable quality and a more practical product.
If possible, make a big single cylinder like Duke 690 return (without Ducati's pricing for its Mono). The Indian market is looking for an upscale, the European market is looking for a downscale. Satisfy both. Price it low here, export and price it reasonably high there.

That said, my suggestions have nothing do with this bankruptcy, its more of a long term advice. Marketing is an important part, but its not everything, and its not a sureshot medicine for all management issues.

[Nayra]

Originally Posted by Shonith

I hope bajaj takes over ktm. I for one don't want cf moto take over KTM. 790/890 are made in china and have poor reputation due to the camshaft failures that has plagued models from several MY. Even their old models like the 690smc aren't trouble free although I don’t think its Ktm's fault may be people just rip the crap out of a brand new bike

CFMoto were only part of the manufacturing process and had no involvement in the design of the bikes. The "camshaft" failure controversy is a misnomer. The camshafts (+ valves, crankshaft etc) did not have a high failure rate due to any inherent issue with the manufacturing but the failures were caused due to oil starvation which is an issue inherent to the architecture of their LC8c parallel-twin engines, which they designed on their own. They've had excessive wear issues with the cams in their LC4 engines for literal decades now, so that's a very KTM thing considering their engines have compression ratios almost matching F1 cars.
IIRC Yamaha has also entrusted CFMoto with manufacturing their bikes and that says something.

KTM has always been the "glass canons" of the biking industry where they have always pushed their products to the extremes. Probably why their bikes are absolutely manic fun.

Absolutely zero chance they'll disappear but I wouldn't be worried at all if they were to get into CFMoto's hands, especially if that means KTM will not be 'bajajified' with the tiny possibility we get KTM's version of the CFMoto 450MT-Ibex.

[VijayAnand1]

Originally Posted by Shonith

I hope bajaj takes over ktm. I for one don't want cf moto take over KTM. 790/890 are made in china and have poor reputation due to the camshaft failures that has plagued models from several MY. Even their old models like the 690smc aren't trouble free although I don’t think its Ktm's fault may be people just rip the crap out of a brand new bike.

At the brink of bankruptcy they decided to launch their big bikes in India, when they had well over 10yrs to do so

Bajaj still hasn't intervened, maybe it's in the process of their own due diligence Come what may, things lo and behold have yield the results thus far. I'd also like to mention and correct the fact that CF Moto made bikes honestly are much better in comparison, have less conundrums than Austrian made 7, 8 and 990s and even to some extent 1290 counterparts.

The cam wear issue put plainly was brushed off under the mat by KTM for the bikes that were actually MADE IN AUSTRIA for the most part, the bikes sold in Pan European, Germany, UK mostly etc. So, it's a matter of design flaw rather than where it's manufactured. I think I'll stop it at that.

Mod Note: Request moderators to kindly close this thread for the time being. All relevant information with respect to the insolvency or bankruptcy and the entailing course correction shall be known as and when they deem feasible, till then I'd suggest this thread be closed.

Cheers!
VJ

[Samarth 619]

Originally Posted by VijayAnand1

Bajaj still hasn't intervened, maybe it's in the process of their own due diligence Come what may, things lo and behold have yield the results thus far. I'd also like to mention and correct the fact that CF Moto made bikes honestly are much better in comparison, have less conundrums than Austrian made 7, 8 and 990s and even to some extent 1290 counterparts.
The cam wear issue put plainly was brushed off under the mat by KTM for the bikes that were actually MADE IN AUSTRIA for the most part, the bikes sold in Pan European, Germany, UK mostly etc. So, it's a matter of design flaw rather than where it's manufactured. I think I'll stop it at that.

I was thinking whether or not to reply, for the fear of resurrecting the thread.

But coming to design, you're right. And its not a new thing: Duke 690 too had this problem where a certain portion of engine suffered from oil starvation when doing extended wheelies. I know bike owners should not do extended wheelies, but honestly, manufacturers shouldn't manufacture them this fragile either.
You'd think they will solve it after so many years.

No idea about CF-M as hearing something on the internet is not the same as riding one, but I hope KTM bounce out of this with changes we all ask for:-
1. Reliability without losing the performance edge
2. Product range in India, expand it, work on big single cylinders, around 700cc or so. Duke 690? 640?
3. No "tech packs" and software restrictions/ paywall/ telemetry uploading of any kind
4. Reduce the insane pricing for 1290/ 1390 series (it's for no apparent reason except that its still unique in the market). You can't deny its just a twin after all, and the research materialises once in a few years. Its still in its 4th gen after so many years, and its still no Ducati, while Jap's Liter class used to get updates every 2 years at one point of time.

I hope for the best.

[saikishor]

https://www.instagram.com/reel/DDcbE...Nnb29xbjAwazho

Teaser. Is Dodge buying KTM?

[hikozaru]

Originally Posted by saikishor

https://www.instagram.com/reel/DDcbE...Nnb29xbjAwazho

Teaser. Is Dodge buying KTM?

I do feel that if Bajaj buys KTM we won't see cool things like these. With Indian ownership, Red bull might also be less inclined to spend as much on KTM's activities. Lots of leagues like Red bull rookies cup, moto3 are in danger. As much as I want Bajaj to do something, CFMoto might actually buy KTM to run a motogp team.

[sab3r2th]

And now they are selling MV Agusta, not very long after they acquired it. Kinda feels like KTM had been resting on a house of cards that collapsed all at once.

[CrAzY dRiVeR]

We are very relieved!

- says the KTM Press Release as the judge allows the brands to continue operations for the duration of the 90-day reorganization proceedings

We are very relieved! Today, the judge made the decision that all three companies can continue to operate for the duration of the proceedings. However, today was only the first step in the 90-day reorganization proceedings.

This means that we will continue to work hard for our employees, our suppliers and our dealers to make this company viable for the long term. After all, we are talking about the business location and an Austrian brand that is well known from Los Angeles to Sydney.

The most important thing is to save as many jobs as possible.

In this context, we are looking for new investors and are trying to reach a sustainable solution together with our creditors. We are having good discussions with the banks in particular.

We would like to take this opportunity to express our special thanks to all our employees who continue to work for our company despite the adverse circumstances, the uncertainty and the sacrifices.

And we would also like to thank our KTM fans and loyal customers all over the world for their support. You all give us strength and courage!”

Stefan Pierer & Gottfried Neumeister

RISING THROUGH ADVERSITY: KTM PLOTS A PATH TO THE FUTURE AND TO MORE VICTORY

READY TO RACE is more than a slogan for KTM. It defines our existence. In competition, there are highs and lows, daring and disappointment, and victory and defeat. 2024 has been a year of conquests but also challenges 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 is navigating a shifting economic landscape. However, as our READY TO RACE mantra suggests, we are embracing this moment to realign, refuel, and reinvigorate. KTM remains fully committed to delivering exceptional experiences to our current and future customers. We will continue to thrill and find our way to the top of the podium again.

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 has been a strong push behind these new motorcycles, as well as efforts to ensure we maintain momentum in the right areas. KTM is applying the same forward-thinking approach during this restructuring phase. Our goal over the next 90 days is to stabilize the business while setting the foundation for sustained growth and success.

Throughout this period, KTM guarantees the continuation of motorcycles being delivered through our Authorized 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.

[CrAzY dRiVeR]

Bajaj, CFMoto and a Hong Kong investment firm are officially in the race for the efforts to restructure KTM. Bajaj ready to commit 300 million Euros.

Three interested companies have so far come forward as potential investors on the KTM AG side. Two of them are names you already know if you've been paying attention to KTM for any length of time.

If you guessed that Bajaj Auto Limited, which already owns part of both Pierer Mobility and KTM, is in the mix, you'd be correct. Unsurprisingly, KTM's other manufacturing partner, CFMoto, has also expressed investor-level interest in Pierer Mobility in this scenario.

How much money are we talking? On Bajaj's side, it's reportedly ready to invest up to 300 million Euros in Pierer Mobility AG's recovery efforts. As for CFMoto, the possible investment amount ranges anywhere between 350 and 700 million Euros, again to support restructuring efforts of Pierer Mobility AG (not KTM; instead, one level higher).

Who's the third interested investor? It's a Hong Kong-based private equity firm called Fountainvest, but exact details of its interest so far haven't been disclosed.

Source- https://www.rideapart.com/features/7...-come-forward/

Meanwhile, former F1 champion Lewis Hamilton is in talks to aquire the KTM MotoGP team - https://www.rideapart.com/news/74554...togp-ktm-2025/

[CrAzY dRiVeR]

The organizational chart -

In Pierer Industrie AG's most recent company presentation, which dates from October 2024 (or just before all the bad news broke), we can see that there are three entities that sit below Pierer Industrie AG: Abatec (electronics manufacturer), Pierer Bajaj AG, and Pankl AG.

Pierer Bajaj AG is a joint venture formed between Pierer Industrie and Bajaj Auto Limited. This joint venture, says the org chart, owns 75 percent of Pierer Mobility AG. Pierer Industrie owns 50.1 percent of Pierer Bajaj AG.

For most motorcycle enthusiasts, it's Pierer Mobility AG that you're most concerned with.

Source

[BullettuPaandi]

Minor update on the situation:

1. A total claim of about 2.18B EUR has been filed(contested) so far; about 1.66B EUR recognised. The number is likely to grow as they are still expecting applications of claims.

2. A total of 23 potential investors, strategic and financial included, are participating.

3. This is yet to be finalised on 25th Feb, but they'll likely have to pay a minimum of 30% quota within two years, to proceed with 'self-administered restructuring'. The quota can get higher, but can't get lower.

4. Production halt likely to continue till March.

5. Stefan Pierer steps down- will continue as 'co-CEO'. His 'ex-co-CEO', Gottfried Neumeister, is now the CEO.

More details in the report and the news articles on it:
Report: AKV
Articles: Motorsport, GPOne

[TusharK]

Bajaj Auto to invest Rs 1,360 crore in KTM

Austrian bike maker KTM has been going through a financial crisis for the last few months. In November, the company had said that it was seeking funding of approximately Rs 890 crore to keep itself financially stable.



According to the latest reports, Bajaj Auto might come to the rescue for the ailing 2-wheeler manufacturer. It is said that the company might invest Rs 1,360 crore through its subsidiary Bajaj Auto International Holdings BV (BAIHBV) based in the Netherlands. Bajaj’s board has also approved the investment of approximately Rs 1,350 crore in BAIHBV.

As per a regulatory filing, the investment will be either in the form of equity capital/preference capital/loan – convertible or otherwise, as may be determined in the due course, in one or more tranches.

Pierer Mobility Group currently holds a majority stake in KTM, while Bajaj Auto International Holdings has a 49% stake in the Austrian motorcycle brand.

Source: Autocar India

Link to Team-BHP News

[SideView]

Some things in financial world that is absolutely strange to me: How a brand that is struggling has multiple motogp teams.

Are they making money out of it? I was thinking all the manufacturers are in it for the marketing. I guess I am wrong then.