BREAKING: KTM’s MotoGP Project Could Be Axed
A sensational twist involving KTM could yet take place as reports claim its MotoGP, Moto2, and Moto3 projects are in jeopardy
KTM’s ongoing financial problems could result in the loss of its entire Grand Prix racing program, if reports from AKV Europa are correct
A creditors’ meeting was held on Friday regarding KTM’s solvency proceedings stating that the Austrian brand’s MotoGP project is “planned” to be shelved in a bid to reduce costs.
Racing in MotoGP is by no means cheap, and both the creation and development of bikes, and then running a top-flight team, can run into the hundreds of millions of dollars. Nonetheless, KTM had maintained the stance that its MotoGP project would not suffer despite entering self-administration with huge debts estimated to run into the billions of dollars.
Despite KTM’s claims that its racing programs were safe from any cost-cutting measures, AKV Europa, claims differently, saying “In order to reduce costs, the withdrawal from MotoGP Moto3/Moto2 is planned”.
AKV is an “independent, state-privileged creditor protection organization” according to its website, which, alongside Citibank, is helping KTM (and its parent company PMG) to get the brand back on an even keel.
The news that specifically relates to KTM’s Grand Prix racing exploits comes from a report published today, that outlines what went on in the first creditor meeting. Alongside a withdrawal from Grand Prix racing, AKV also calls for relocation of production to reduce costs, and calls for clearance sales at KTM dealers to help clear the backlog of unsold bikes.
The news of this does go somewhat against the grain of KTM’s statement earlier this afternoon, which claimed the brand was “Here to Stay” and that it was heading into 2025 without “letting off the throttle”. Despite these claims of it being business as usual for its racing teams, the ultimate say on what happens with them with likely lie with the creditors it owes money to. After all, it’s not a good look to be owing companies millions of dollars, yet still be jetting off around the world with your big-name athletes burning petrol in the name of sport.
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Simon (AKA Toad) has been working within the motorcycle industry for more than twelve years, and a member of the motorcyclist family since birth. Growing up around British-built single and twins, it was inevitable that a life on two wheels was on the cards, from a very early age!
