KTM is publicly facing severe financial difficulties, urgently needing over a hundred million euros to pay creditors. The company is on the verge of entering insolvency and self-administration proceedings, leading to restructuring.
Business has plummeted in recent years, with tens of thousands of motorcycles sitting in warehouses, valued at €1.4 million according to Profil magazine. This situation will result in hundreds of layoffs and a production cutback, with operations fully halting in January and February.
Could KTM find support in an existing partner? The group is 74.9% owned by Pierer Bajaj AG, which itself is controlled by Pierer Industrie AG (50.1%) and Bajaj Auto International Holdings BV (49.9%), alongside other small shareholders.
According to Motorrad Online, negotiations are underway between Stefan Pierer and Bajaj AG to secure a capital injection – possibly through bridge loans. However, rumors suggest that initial talks have failed.
Still, it cannot be ruled out that the Indian manufacturer might eventually acquire KTM and the group’s other brands (GasGas, Husqvarna, and MV Agusta) in the future.
Recently, there were also rumors of support from Mark Mateschitz and long-term partner Red Bull via a share acquisition. However, it has been denied that any such discussions ever took place.