Rumors had been circulating for months, and they were confirmed last week: KTM AG faces a dire financial situation and is set to enter insolvency.
The debts of KTM AG and its subsidiaries, KTM Components GmbH and KTM F&E, amount to €2.9 billion. While the competition division (KTM Racing GmbH) is separate, there are concerns that it might also be affected.
For now, the development of the MotoGP bike has been halted for the winter. Although unofficial assurances have been given about KTM’s future in the premier class, there are fears that the reality could turn out differently.
According to Motorsport.com, KTM has ensured that both the factory team and Tech3 will remain unaffected. However, Dorna has some doubts given the scale of the crisis.
In the coming days, KTM is expected to present a plan to isolate the racing division, particularly because it still views continued racing activities as essential to prevent significant damage to the brand’s image.