Goodbye KTM – the brand goes bankrupt, leaving a backlog of 300,000 bikes in its warehouses | FerrariChat
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Goodbye KTM – the brand goes bankrupt, leaving a backlog of 300,000 bikes in its warehouses

Discussion in 'Motorcycles & Boats' started by NYC Fred, Jan 17, 2025.

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  1. NYC Fred

    NYC Fred F1 World Champ
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    #1 NYC Fred, Jan 17, 2025
    The future of this legendary brand is in jeopardy

    Overproduction: the root of the crisis
    Peter Vogl, the company’s bankruptcy administrator, confirmed through a report that the company’s problems were mainly due to the fact that production did not adjust to the real demand they had in the market, that is, they produced more than they could actually sell. Although sales increased in 2023, this disproportion in production continued to exist, and this imbalance ended up translating into a massive accumulation of motorcycles that are now forgotten in their warehouses…

    Another problem that is highlighted in this report is that the commercial strategy that they have followed in recent years has been unrealistic, as they have prioritized the manufacture of high-end models (more expensive, of course), and this caused KTM to disconnect from a large part of the market (as many users cannot afford those prices and have chosen to buy motorcycles from other more affordable brands…)


    https://unionrayo.com/en/ktm-bankrupt-2024/
     
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  2. kestrou

    kestrou Formula 3
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    #2 kestrou, Jan 17, 2025
    Wowza!

    So the dealers are trying to get the bikes they have on their floor "out the door" - and then there's another 300,000 bikes in warehouses in Austria that the dealers DAMNED SURE don't want...

    Kevin
     
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  3. donv

    donv Two Time F1 World Champ
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    #3 donv, Jan 17, 2025
    Yes, that has been going on for a while. Where it ends, who knows. The big thing is they are shutting down their parts manufacturing subsidiaries in Austria and outsourcing more production to India and China, one of whom will end up owning the whole thing.

    But 265,000 motorcycles in inventory!!!
     
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  4. donv

    donv Two Time F1 World Champ
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    #4 donv, Jan 17, 2025
    My local KTM dealer (one of several in the area) has 336 KTM bikes in inventory!
     
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  5. NYC Fred

    NYC Fred F1 World Champ
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    #5 NYC Fred, Jan 17, 2025
    Now dial in service and warranty claims.
    Sucks. They built some fun stuff.
     
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  6. Skippr1999

    Skippr1999 F1 Rookie
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    #6 Skippr1999, Jan 17, 2025
    I love my 2023 350 EXC-F. Are they going to be giving these things away on clearance?
     
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  7. donv

    donv Two Time F1 World Champ
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    #7 donv, Jan 18, 2025
    That is going to be a bummer, for sure. The good news is that KTM seemed to hand out dealerships like candy, at least in the US-- there is one everywhere! So at least someone will be able to fix it for a price, if not for free.

    If only KTM bikes were known for their reliability... only in a good way rather than how they actually are.

     
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  8. LVP488

    LVP488 F1 Veteran

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    #8 LVP488, Jan 19, 2025
    KTM is not bankrupt (yet?), they are in a restructuring phase (specific to the Austrian law, different administration plans are available in different countries for companies with financial difficulties). So what will eventually happen to the company remains to be seen.
    Not that it makes much difference, the reported number of bikes in inventory is 265,000.
    In the positive side, they just won the "Dakar" rally (which, as its name does not tell, was held in Saudi).

    Historically, KTM was famous for off-road bikes; I wonder why they lost this focus and entered MotoGP.
     
  9. boxerman

    boxerman F1 World Champ
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    #9 boxerman, Jan 27, 2025
    How about a great discount on the KTM car.
     
  10. donv

    donv Two Time F1 World Champ
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    #10 donv, Jan 27, 2025
    It doesn't sound like it's going great. Yes, it's the equivalent of a Chapter 11 filing (reorganization) rather than a Chapter 7 (liquidation), but so far the debt holders are holding firm.
     
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