KTM is going through one of the worst crises in its history. Its parent company, Pierer Mobility, has revealed some dizzyingly negative figures for the 2024 financial year: a pre-tax loss of €1,28 billion, a 29,4% drop in revenue, net debt peaking at €1,64 billion, and, above all, negative equity of €199 million. A warning signal as loud as an over-revving motorcycle.
Sales plummeted: only 292 motorcycles sold in 497, compared to more than 2024 in 370. Almost 80 000 machines are missing, a fall of 21% despite strong partners like Bajaj in India, which still delivered 60 000 units. Europe and North America alone account for more than 60% of the market of KTM, but that's no longer enough.
Consequence: the historic factory of Matthighofen closed in December, only reopening in March thanks to a buoy 150 million euros…but the real hope lies in a rescue plan 600 million, still uncertain. Meanwhile, more than 1 employees were laid off, and the brand is definitively leaving the electric bicycle market. The liquidation of stocks Husqvarna, GasGas et Felt is in progress.
KTM: a restructuring with an axe
KTM now has only one objective: to refocus on motorcycles. The abandonment of peripheral segments, the sale of non-strategic assets and a drastic refocusing of the scope of activity are aimed at one thing: avoid bankruptcy.
But if this plan fails, a well-informed predator is already on the prowl. Bombardier Recreational Products (BRP), the Canadian multinational parent company of Can-Am, Ski-Doo and Sea-Doo, is waiting for the perfect moment to buy KTM at a discount. A cold, calculated, and potentially devastating strategy for the Austrian brand's autonomy.
They are said to be waiting for a "collapse" to acquire a "majority stake," which would make the deal cheaper for them. They have a connection with KTM Parts and accessories BRP already owns the Rotax engine company which has powered many motorcycles KTM. They are therefore not strangers to the brand.
At BRP we do not deny it. In a press release from the brand, reported by Rideapart, they emphasize: " Our organization is constantly looking for ways to generate long-term profitable growth. In addition to organic growth, our team regularly monitors and evaluates merger and acquisition opportunities. However, it is our policy not to comment publicly on such rumors or speculation. »
PiererMobility is today in a race against time. The future of KTM, an iconic off-road brand and major player in MotoGP, is being played out in the coming weeks. In the absence of a rapid rescue plan, it is a 180° turn imposed by bankruptcy... or by a Canadian offer.
