KTM, once synonymous with speed and robustness, found itself in the biggest crisis of its existence. Financial loss, market problems and the questionable future of electric mobility threaten that the orange legend will become nothing more than dust on the European motorcycling scene
Stefan Pierer, the first man of KTM, had to do something that would have been hard to imagine a year ago - file for insolvency. We're talking about a company that made £105 million (about €122 million) in profits in 2022, but slipped into a dizzying loss of £150 million (€174 million) in 2023. The reason? A sharp decline in sales, especially in the US and Europe - two key markets.
It is not the first time KTM has faced a crisis. In the 1990s, the company was on the verge of collapse, until it was Pierer who saved it. Today, more than 6,000 KTM employees produce almost 400,000 motorcycles and vehicles annually. The company has become synonymous with boldness, innovation and quality, appreciated by motorcycling enthusiasts around the world. However, this time the situation is different. The world has changed, the motorcycle industry is developing in a direction that has not been close to KTM so far - electric mobility.
Stefan Pierer, who saved KTM from insolvency back in 1992, is once again faced with a difficult task. This time he opted for the European restructuring process, which allows the company until February 2025 to prepare a comprehensive stabilization plan. There are three large loan packages in play, totaling 208 million pounds (about 241 million euros), which should give the company a fresh start.
The main focus will be on optimizing production processes, reducing costs and focusing on new markets. An important part of the strategy also includes cooperation with India's Bajaj Auto, which already has a 48% stake in KTM. A synergy with Bajaj could allow for more competitive pricing and access to fast-growing Asian markets.
One of the key elements of KTM's survival is the conversion to electric mobility. Although KTM has long been skeptical of electric motorcycles, this segment could become a lifeline. The electric motorcycles, which combine KTM's tradition with innovative technology, are part of a long-term plan for the company to maintain its competitiveness.
Known for its Moto GP success and models such as the Duke, RC and Adventure, KTM is more than just a company. It is a symbol of innovation and European industrial tradition. Its future will depend on its ability to adapt to changing market conditions and maintain the core of its brand.
For all motorcycle enthusiasts, the key moment will come in February 2025, when it will be clear whether KTM will continue to write a success story or become just another reminder of the fragility of even the biggest players in the industry. And will 6,000 employees and countless loyal fans believe that the company is still capable of creating engines that excite.
KTM's fight for survival is a reminder of how quickly things can change in the automotive and motorcycle world. From global success to the brink of collapse - KTM's future will depend on innovation, adaptability and trust in Stevan Pierer's vision. If he succeeds, KTM will prove that even in the darkest of times there is a way back to the top. Fingers crossed for the orange legend!
