KTM recently launched a bunch of big bikes along with a few motocross and enduro bikes in India, only suggesting that the brand is doing well in terms of business matters. Unfortunately, it’s quite the opposite as the company has filed for self-administration to save the company from insolvency. KTM and the other two-wheeler brands Husqvarna, GasGas and recently acquired MV Agusta come under the Pierer Mobility AG group which is currently facing serious financial crises that have put Europe’s largest motorcycle manufacturer into a tumble.
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According to the announcement by brand CEO Stefan Pierer and co-CEO Gottfried Neumeister, the company will undergo a self-administration and strategic resurrecting plan to bring the company back on track in the next 90 days. This means there will be hard decisions to be made with regard to the brands owned, employees, and other administration departments. It is also possible that the company might consider halting the production line for some time to assess the costs and inventory, according to reports.
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Furthermore, while Stefan and Gottfried will continue to be in control of the brand during the said period, a restructuring administrator appointed by the court will be present to help with the decisions and changes implemented. KTM’s current debt this year rose to a staggering 1.5 billion Euros, and one of the chief reasons behind it is the recent acquisition of the MV Agusta brand. KTM AG has been seeking a substantial cash influx leading to a couple of hundred million dollars to stay afloat during these tough times.
