KTM gone into administration?

[boyse7en]

Chatter is suggesting that KTM AG has gone into some form of administration while it tries to renegotiate or renew its lending.

Trying to find out more...

https://uk.investing.com/news/stock-market-news/pi...

[Iamnotkloot]

More here
https://www.autosport.com/motogp/news/ktm-to-enter...

[ChocolateFrog]

Selling hideous looking bikes isn't going too well then.

[Skyman]

It will be interesting to see how this plays out.

[Krikkit]

ChocolateFrog said:

Selling hideous looking bikes isn't going too well then.

It seems like it's actually been going really well, but they've over-stretched in terms of operating capacity and stock against a market that's contracting, rather than what they've gunned for in expansion.

[HybridTheory]

Should waive a Saudi come and rescue us flag

[bergclimber34]

I think if you buy (and no doubt buy a lot of debt) lots of old companies over time, and then start racing at a very high level, paying people huge salaries, this is likely.

It happened to the Castyglioins with Ducati and MV and it has happened here,

Selling off roaders does not make much money, they are relatively cheap compared to stuff like BMW's etc, they bit off more than they could chew and the new lines they bought did not return on the investment, which is why they were being sold anyway!! Maybe Husqvarna was wise, but Gas Gas, and the others? No.

And also now there is far more competition even in off road from huge makes like Triumph and Ducati, so the outlook looks bad unless a partner can be sought.

[moanthebairns]

What a time to have three new ones sat in the garage.

[ChocolateFrog]

Krikkit said:

ChocolateFrog said:

Selling hideous looking bikes isn't going too well then.

It seems like it's actually been going really well, but they've over-stretched in terms of operating capacity and stock against a market that's contracting, rather than what they've gunned for in expansion.

Them making them and not being able to sell them kind of backs up my point.

Was looking at the KTM stand at MCL24 last week. My brother and I were lamenting how far they'd fallen and that's before I knew they were even in difficulty.

[Biker9090]

I wonder if the arse will fall out of the 890 market even more than it already has? All those promised warranties.....

[Jag_NE]

Never owned one personally but general social media chatter about the brand seems to obsessed with poor quality

Not really sure where they really sit in the road bike market these days. They don’t appear to be out front in any areas.

[Tonberry]

They've expanded too quickly. The reliability of their bikes is also shocking.

They'll survive because the product is desirable. They just need to rethink manufacturing and QA.

[trickywoo]

Jag_NE said:

Not really sure where they really sit in the road bike market these days. They don’t appear to be out front in any areas.

In the super naked category the super duke is always top three in any test you watch, quite often the ‘winner’.

[Arlen]

Video from them on YouTube

I have been looking at a new bike and crossed KTM off the list because of this stuff.

KTM Pit Stop for the Future

[Janluke]

I've had 3 ktms and am on my third Husky so clearly a fan of the brand but curious to see how its going to work for them now.

Talk of streamlining so I guess no more racing, prob dump or sell Husqvarna/GasGas, do they still make the XBow?

You'd have to be a very hardcore fan to be buying a new ktm over the next 12 months(assuming you can)

[NS400R]

Well that puts paid to me buying a GasGas.

Never understood the attraction of KTM myself. Poor quality bikes sold at mega discounts thus destroying the value for people that paid full price.

[Steve Bass]

One of the more curious decisions was to buy brands that effectively compete for same market share.
The C Suite executives will argue that niche brands broadens the market penetration but in reality you're cannibalising your own market with the aim of monopolising it.
Look at the offerings from KTM, Husky and Gas Gas in the offroad market. Tiny niche differences. Husky's might be a little bit up market with brembo brakes or other components compared to KTM, or GAS Gas might have a different suspension and hardware combo, somewhere between KTM and Husky but why??? If you're trying to cover all the possible permeabilities of buyer desires wouldn't it be better to offer a basic package with options rather than running multiple factories churning out essentially the same product....
And if buying up the brands is seeking to own the market, there's an awful lot of risk of maintaining the required sales to support multiple manufacturing facilities.
The quality issue is separate. Every brand has hiccups, Honda Fireblade oil rings? BMW S1000 cranks snapping, Aprilia valve train issues, the list goes on and on. I've had multiple KTM's, taken them to some pretty inhospitable places and I have never had an issue. Currently have an 1190 Adv with 30k kms and it's spot on.
Manufacturing in Asia is a no brainer due to import tariffs and trade agreements and it's obviously a QA issue that needs addressing but I wouldn't firebomb the entire brand due to some made in India camshaft troubles...
The problem is their growth hasn't been organic rather based on acquisition of already failing and indebted brands. Might have been better to buy the brands and shutter them up to stop the competition and eventually find a clear brand target focus instead of making multiple copies of essentially the same thing with different badges to bolster the portfolio and make yourself feel good about yourself....
And the administration? It's nothing to worry about, simply a way to protect yourself from potential investor interference while you reorganise. And force a new debt reconciliation agreement terms. If you're thinking of buying a PMAG product, don't let it put you off....

Edited by Steve Bass on Tuesday 26th November 21:28

[bergclimber34]

I think they were just closing down competition and then using that to exploit new markets, trouble was they were using brands that were dead or dying.

Off road is tough, they dominate that, but they are now facing rivalry from other established brands like Ducati and Triumph and you know that in 5 years thier ranges are going to expand, I find it interesting that BMW have only ever dabbled in this field, content to rake in GS profits yet at the same time utterly battering the big sports bike market. KTM tried and failed to do this. I wonder why BMW managed it and they did not?

[2ndclasscitizen]

ChocolateFrog said:

Krikkit said:

ChocolateFrog said:

Selling hideous looking bikes isn't going too well then.

It seems like it's actually been going really well, but they've over-stretched in terms of operating capacity and stock against a market that's contracting, rather than what they've gunned for in expansion.

Them making them and not being able to sell them kind of backs up my point.

Was looking at the KTM stand at MCL24 last week. My brother and I were lamenting how far they'd fallen and that's before I knew they were even in difficulty.

It's the exact opposite. They were selling st loads of bikes - including the ugly ones - scaled up the business and production to suit, then the arse fell out of the market as interest rates and COL shot up, leaving them with a load of inventory and production capacity they owe debt on.

KTM thought the good times would last forever and reality has pulled their pants down.

[KTMsm]

Wasn't half the problem that it wasn't just the KTM arm that had issues.

I believe they have a large cycling business that has had a worse year

They've certainly made mistakes but I think the biggest one was over production