Many of our customers and KTM riders alike will have heard, and perhaps been concerned about some of the news coming out of KTM HQ in Austria over recent weeks.
There's been a raft of stories, articles and videos posted online from the absurd to laughable, and everything in between. All we'd say is don't believe all you watch or read and get in touch with us if you've any specific concerns.
If you've been following the news you'll have seen KTM has hit some financial troubles. Yes, that's true - there's no argument with that, but KTM isn't about to disappear from either the race track or the many local meetups taking place up and down the country.
In a nutshell, KTM made losses through 2024 while at the same time, debt levels had increased. Yes, we're talking some pretty big numbers to you and me, but the business has taken action and initiated insolvency proceedings to manage creditor repayments and avoid bankruptcy.
As a result, there's been some pretty major cut backs at KTM, but perhaps the most noticeable impact to customers will be fewer bikes coming to market in the short term, with a complete pause in production planned in January and February.
Here at Triple D Motosport, we're not overly concerned. We've witnessed some of the struggles at KTM first hand through 2024 and been watching what's happening here in the UK closely. We're happy and reassured by KTM that the situation is being managed and there's a solid plan in place for 2025. Or, as Stefan Pierer, CEO of KTM AG has put it, a "pit stop for the future".
For us, it's business as usual and there's little that we, or our customers can do to influence the situation at KTM in the short term. The brand isn't about to disappear and there are some great deals to be had on 2024 bikes as well as 2025 models hitting the showroom in the coming weeks.
For us it's actually a massive relief to see production cuts at KTM. 2024 saw no less than 20 dealerships we know of sadly fold, although incidentally, only 2 of these were selling KTM bikes.
While much has been said about KTM and their problems, there are other manufacturers facing similar issues. Markets in Europe and the US have seen declining sales, there's been high interest rates across western economies and this has lead to an over supply of bikes. All motorbike manufacturers are cutting production to safeguard their businesses, but of course these situations don't just affect the manufacturer, but the well established dealer networks as well.
As a result, it's a buyers market. There's KTM bike stocks to clear and amazing new KTM deals to be found that will ensure your local dealer remains well placed to weather the storm from up on high.
KTM is implementing a significant financial and operational reset, with what some might see as drastic measures to stabilise its business. The KTM brand has played a key role in the motorcycle industry and that will continue to be the case going forwards, but undoubtedly there will be budget constraints that will impact on new product development and racing activities. It's likely there will be few new models launching in the short term as they ensure the business is a firm footing to thrive at the forefront of the global motorcycle industry in the future.
Get in touch for a natter or follow us on Facebook where I'll be posting videos and sharing updates on what's happening, not only with the KTM situation, but also on the latest bike deals and events we'll be attending in 2025.
Neil Crayston
Dealer Principal - Triple D Motosport