KTM Crisis Is Getting Worse, Restructuring To Avoid Bankruptcy

KTM 990 Duke R. (Doc. KTM AG)

JAKARTA - Bad news is approaching a motorcycle manufacturer from Austria, KTM. The brand announced that it is entering the "self-administration" phase or self-management for 90 days to undergo the restructuring process as a final step to avoid bankruptcy.

Just like other brands, the manufacturer is also experiencing problems with excessive stock in the market with difficulty selling in several countries.

This independent management application was submitted on November 29 and will effectively give KTM 90 days to manage its assets under surveillance and potentially approve a new reorganization plan.

In a statement, KTM AG CEO Stefan Pierer said his party was doing various ways so that this brand could still exist in a two-wheeled world.

We inspire millions of motorcyclists around the world with our products. Now we are making stops for the future. The KTM brand is my life's work, and I will fight for it," Pierer said as quoted by Motorcyclenews, Tuesday, December 3.

Despite being in an emergency situation, the brand says it is not affected by production activity or unit delivery to customers in several regions including the UK.

Nothing will change for our customers. Of course, we guarantee that we will continue to send motorbikes, spare parts and accessories as usual. There will be no irregularities, both in the flow of goods and customer services," said KTM.

Then, the manufacturer ensures that this will also not be affected by other markets such as North America. In a statement, KTM North America said that this step only had an impact on KTM AG.

North America and all other KTM subsidiaries were not affected by this issue, said KTM North America, quoted by Forbes.

Meanwhile, this situation also does not affect the operation of KTM in countries such as India which is currently operated by Bajaj Auto.

In a statement, one of the subsidiaries of KTM AG said the crisis was only experienced by Pierer Mobility AG, which runs its business in Austria and insists on continuing to produce and deliver its vehicle units to customers in India.

The KTM business run outside India (domestic market, certain export markets) whose products are jointly developed by KTM & Bajaj and produced and sold by Bajaj Auto continues to operate as usual during this period. The KTM and Husqvarna brands have strategic interests and are an important part of the premium Bajaj Auto motorcycle business in India," Bajaj Auto wrote in a statement from Cartoq.

Previously reported by VOI last July, Pierer Mobility as the parent company of KTM had laid off 200 employees last September. This refers to employee data as of June last year reaching 6,314 people, and now only 6,024 people, meaning there is a difference of hundreds.

The root of the problem of termination of employment was due to a decline in sales throughout 2024. In fact, his income fell 36 percent from year to year in the first half of 2024, compared to the same period in 2024.

Earlier at the end of last year the company also cut 300 jobs, and shifted more production to India and China through partnerships with Bajaj Auto and CFMoto.