Scale of KTM’s Debts Revealed
The Austrian Brand’s debts are close to €3 billion, it’s been revealed
KTM’s difficult financial position, which has resulted in cutting its board of executives from six to two and laying off hundreds of employees in recent months, led to it filing for self-administration last week. Now, statements from the Alpine Creditors Association claims the financial issues are worse than anticipated.
KTM has released a whole raft of new motorcycles for 2025, including the 2025 890 Adventure R, 1390 Super Duke GT and 990 Duke R just to name a few, however, it hasn’t taken away from the Austrian brand’s ongoing problems.
Last weekend we brought you the news that KTM was applying for self-administration, but its debts have been estimated at around €2.9 billion (£2.4 billion).
The application for self-administration began on Friday and the extent of the financial damage is beginning to seep through as KTM will now focus on restructuring its organisation.
Insolvency expert Cornelia Wesenauer from the Alpine Creditors Association said this about the situation: “It was clear that the liabilities of the KTM companies would reach a high level.
“Nevertheless, we are surprised that the liabilities are so high. After all, at first glance, we expect liabilities of €2.5 to €3 billion. That is now clear. This is the largest insolvency procedure in Austria this year.”
The position KTM finds itself in is very surprising because in 2023 it generated a profit of €100m, which came after a peak financial gain in 2022. But shares since February 2022 have reportedly fallen by 90 per cent although that's not been confirmed.
It's believed that KTM will ensure that December salaries are paid for its staff despite the ongoing uncertainty over their jobs. However, last month’s salaries and Christmas bonuses will need to be covered by the Insolvency Wage Fund.
GasGas and Husqvarna, both subsidiaries of KTM, have pulled out of Grand Prix racing for the 2025 season, although the KTM MotoGP project is set to continue without any changes or impact, as it stands.
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After graduating with a sports journalism degree, Robert joined Crash.net to lead the WorldSBK coverage in 2021, while also providing MotoGP coverage. Fulfilling that role for over three years, Robert was able to put his knowledge about all things racing to the test.
