Race Nil! KTM Officially Bankrupt: 295,000 Bikes Stuck in Warehouses as Brand Shuts Down

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Does the KTM brand sound familiar to you? This is more than just a motorcycle brand, it is a symbol of adventure and speed.

But even giants go through bitter times and the Austrian company that has been a world leader in the automotive sector is now facing an incalculable challenge: 300,000 motorcycles piled up in warehouses… and an abysmal debt of 2,000 million that has caused the company to declare bankruptcy… What has happened and how could it happen to a company with such a sustained legacy?

And most importantly… does it have consequences for its followers?

Who are we talking about?

KTM, the company founded in 1934 in Austria, is one of the most famous motorcycle companies around the world for its innovative designs and incredible durability, specializing, above all, in high-end racing motorcycles. This Austrian company has been a reference in extreme sports and has earned the loyalty of its followers based on commitment and quality, no coincidence!

Now, for motor fans, a door of uncertainty opens: what will happen to KTM and why are they in this situation?

Overproduction: the root of the crisis

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Peter Vogl, the company’s bankruptcy administrator, confirmed through a report that the company’s problems were mainly due to the fact that production did not adjust to the real demand they had in the market, that is, they produced more than they could actually sell. Although sales increased in 2023, this disproportion in production continued to exist, and this imbalance ended up translating into a massive accumulation of motorcycles that are now forgotten in their warehouses…

Another problem that is highlighted in this report is that the commercial strategy that they have followed in recent years has been unrealistic, as they have prioritized the manufacture of high-end models (more expensive, of course), and this caused KTM to disconnect from a large part of the market (as many users cannot afford those prices and have chosen to buy motorcycles from other more affordable brands…)

Is it the best time to buy?

Yes, although KTM is in crisis, now they need to reduce stock, so they will most likely lower the prices of their vehicles to make room. If you were thinking of buying a new motorcycle, now is your chance because the brand is already lowering prices. If the Husqvarna or GasGas model caught your eye… now is your time to treat yourself and go for it…

And, we are not trying to make your mouth water… but many experts believe that KTM dealers are going to offer extra discounts to be able to clear out stock as soon as possible… It’s up to you!

Beyond the impact on Austria

This crisis is not just a liquidation of stock, but it has also led to hundreds of layoffs. And, although the debt continues to grow and many suppliers have stopped providing their services, the Austrian company has decided to end production (for the moment) and is not expected to resume until the end of March… that is, if conditions improve. In the meantime, the bankruptcy court has decided to allow the company to continue with self-administration until February.

As for KTM, they have started to sell assets such as the stake in MV Augusta, and experts do not rule out that they may even sell iconic brands such as Husqvarna that will help them cover these debts.

Who will save KTM?

Bajaj and CFMoto, two other giants, have shown interest in acquiring this brand, and it seems that Bajaj is winning the bet (they produce more than 4 million motorcycles a year and were already partners of KTM). As for the Chinese company CFMoto, with this acquisition they could consolidate their presence in Europe (since in China they already collaborate with KTM).

The turning point for KTM is real: sell, hold on or throw it all away? This tough decision will be the one they will have to face in the coming months, but, in the meantime and as every cloud has a silver lining… You can buy a high-end model at an affordable price.

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