News KTM shows encouraging prospects

A symbol of daring and performance, KTM is going through one of the most significant crises in its history. Faced with a drastic drop in sales and major financial difficulties, the Austrian manufacturer embarked on a major restructuring. The departure of Stefan Pierer, the loss of thousands of jobs, the search for investors and uncertainty about the future of MotoGP... KTM is playing a crucial game to ensure its survival and preserve its status on the international scene.

Pierer Mobility: Stefan Pierer passes the torch

After more than three decades at the helm of KTM, Stefan Pierer is stepping down as Chairman of Pierer Mobility AG. It's a landmark decision for the man who has shaped the Austrian manufacturer's identity since 1992. He hands over to Gottfried Neumeister, who has been a member of the Board of Directors since the beginning of the year, but remains involved in the reorganization process.

Stefan Pierer, now ex-KTM Managing Director:
KTM has always been much more than just a company: it was and still is a passion, a mission and a family. The decision to pass on the torch was not an easy one. I am convinced that Gottfried Neumeister, with his strategic vision and commitment, is the ideal choice to lead KTM into the future.

Vital restructuring for the Austrian manufacturer

Pierer's departure comes against a difficult economic backdrop. In 2024, KTM sold 292,497 motorcycles, a 21% drop on the previous year. Europe accounted for 38% of sales, followed by North America (24%), India and Indonesia (21%) and other markets (17%). While sales to private customers remained stable (268,000 units), the drop in orders from dealers indicates a worrying slowdown.

Faced with this crisis, KTM implemented several drastic measures, including cutting 1,800 jobs, making Jeremy McWilliams a collateral victim, and reducing production to 230,000 motorcycles, i.e. 26% less than in 2023. These choices have reduced inventories by 40,000 units (-18%), but have also precipitated a drop in sales, from 2.7 billion euros in 2023 to 1.9 billion in 2024 (-29%). The Group is forecasting a negative EBITDA (earnings before interest, taxes, depreciation and amortization) of around 300 million euros, with losses running into the hundreds of millions.

To overcome this crisis, Pierer Mobility is preparing to welcome new investors. India's Bajaj and China's CFMoto, already partners of the group, are being approached to provide the funds needed for restructuring and to meet the requirements of the Austrian courts, which require financing of at least 30% of the amount of the debts.

Official: MV Agusta regains its independence

MV Agusta extricates itself from the KTM situation and refocuses its operations in Varese (Italy).

Against this backdrop of reorganization, KTM has had to part with a valuable asset: MV Agusta. The Italian manufacturer, acquired by Pierer Mobility AG in 2024, came back under the control of the Sardarov family less than a year later. Timur Sardarov is taking over the reins of the company and has high ambitions: "Taking back full control of the company means that we are now stronger and more focused than ever on excellence", he asserts. The figures prove him right: with 4,000 motorcycles sold in 2024, MV Agusta is up 116% on 2023

What does the future hold for KTM in MotoGP?

Although there were rumours of a possible departure at the end of the contract with Dorna in 2026, despite this delicate financial situation, KTM maintains its commitment to MotoGP.

Pit Beirer, Director of KTM Motorsport, is reassuring:
We have a plan, we're going to make savings in certain areas, but we're not going to stop developing bikes. In MotoGP, you can't just take part to be there. If you're away for a year, you risk going from fighting for the podium to finishing in last place.

The next crucial deadline for KTM is February 25, when creditors must approve the restructuring plan. In the meantime, the Austrian brand continues to work on the RC16, which will be entrusted to Brad Binder, Pedro Acosta, Enea Bastianini and Maverick Viñales. For 2027, KTM is already working on its future motorcycle, adapting to the new regulations, although these have not yet been fully finalized.

BMW keeps a watchful eye

While KTM struggles to secure its future in MotoGP, BMW is showing increasing interest in the premier class. Sven Blusch, head of BMW Motorrad Racing, has confirmed that the German marque is working on a serious project and is considering a Grand Prix entry

At the same time, KTM must also review its commitment to Moto2 and Moto3: "The plan is to stay, but with a reduced program. We have the budget for 2025, but no decision has yet been made for 2026 and 2027," says Beirer.

Whatever the future may bring, KTM intends to be a contender for the MotoGP title this year, as stated at the online presentation on January 30. The orange brand is going through the most difficult period in its history. However, KTM is still hoping to bounce back and retain its place among the major players in the motorcycle market.

Main photo credits: KTM / MotoGP