In a rare public confession, KTM's new CEO, Gottfried Neumeister, has broken his silence on the crisis that nearly brought down the Austrian motorcycle giant. In an exclusive interview, he frankly admits: the disaster was caused from within.
« It wasn't the market that let us down. It was we who abandoned our course. ", summary NeumeisterThe toxic cocktail? Strategic errors, overestimation of the market and poorly managed acquisitions.
Three decisions major have precipitated KTM into the abyss: the failure of investment in electric bikes after the pandemic, with 400 million euros in losses at stake. The hasty purchase of MV Agusta, who dug a hole of 220 million more. A distribution disconnected from the field, with more than 70 motorcycles saturating dealerships in 000… and more in 2022.
The result? An explosive debt of 1,6 billion euros in 18 months, compared to 240 million previously. Production has stopped. Insolvency proceedings have been initiated. And more than 100 partner banks sank with the ship.
To avoid shipwreck, Neumeister carried out a tough restructuring: agreements with suppliers. Maintaining jobs in exchange for wage cuts. And above all, the injection of 600 million euros from Indian partner Bajaj, loyal for 17 years.
Gottfried Neumeister CEO of KTM: “ We don't want to be the biggest anymore. We want to be the best again. »
Production lines in Austria are running again, But the era of unbridled expansion is over. Make way for simplification and efficiency..
« We had too many models, meaningless slogans, and too few buyers. We must return to the basics ", says the boss on motomagSevere cuts followed: MV Agusta will be resold The X-Bow, an iconic sports car, is on the way out. CFMoto will no longer be distributed directly.
KTM refocuses on its DNA: lightness, performance, profitability. We don't want to be the biggest anymore. We want to be the best again. »
Regarding the future in MotoGP, Neumeister remains pragmatic: “We will continue… but not at any priceEverything will depend on the 2027 regulation and the budget cap.If it is not viable, we will not stay out of pride. »
KTM draws a lesson that many should ponder: selling in bulk does not guarantee stability or success. You have to know how to listen, adapt and above all, stay true to what your name represents. Our name is our greatest asset. Now it's up to us to rise to the occasion " concludes the boss.
