Unexpected rescue for KTM!

KTM can restart its production after the approval of a restructuring plan. But the axe came very close.

The Austrian manufacturer KTM finally sees the light at the end of the tunnel after its creditors approved, by a simple majority, the restructuring plan proposed last November by its parent company, Pierer Mobility. This plan involves a one-time payment representing 30% of validated claims, totaling 548 million euros, to be paid before May 23, 2025.

To secure this agreement, Pierer Mobility must raise 800 million euros from investors, including Bajaj Auto, its historic partner. Although rumors circulated about a potential investment from BMW, this hypothesis remains unlikely due to KTM’s strong ties with Bajaj and CFMoto. Citigroup will supervise the financial transactions related to this restructuring.

Once the payments are finalized, the Austrian justice system will validate the agreement in June 2025, making it legally binding. Meanwhile, KTM will gradually resume its production in Mattighofen starting in mid-March, thanks to a contribution of 50 million euros from shareholders. The goal is to regain maximum capacity on its four production lines within three months, after having reduced its production by 26% in 2024, to 230,000 units.

Since the beginning of this crisis in 2024, KTM has laid off hundreds of employees, significantly impacting the local community. However, the new CEO, Gottfried Neumeister, remains optimistic: “KTM is back on track thanks to the efforts of our teams.”

This crucial vote, held in Linz on February 25, 2025, marks the end of a tumultuous period. Stefan Pierer, a prominent figure at KTM, had handed over leadership to Neumeister in January to refocus the company on solid strategic foundations. Furthermore, KTM had to part ways with MV Agusta, which was sold to the Sardarov family.

Despite the challenges, KTM continues its activities in competition, notably in Rally Raid with the upcoming Dakar in sight, and in Moto GP where Brad Millet and Pedro Acosta scored points this morning during the first race of the season, the Sprint race of the Thailand Grand Prix.

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