Reported creditor KTM’s MotoGP future still in doubt

KTM is addressing financial challenges through a self-management process. The company has partnered with global investment bank Citigroup to guide its restructuring efforts. Reports indicate that the KTM Group of Companies faces debts of approximately €3 million. Austrian media focused on the arrears of employees’ November wages and Christmas bonuses. By partnering with Citigroup, KTM seeks to stabilize operations, resolve financial issues and focus on growth in the motorcycle market. This partnership reflects KTM’s efforts to consolidate its industry position and achieve long-term stability.

KTM said in a statement: “We are very relieved! Today, the judge ruled that all three companies can continue to operate during the proceedings. However, today is only the first step in a 90-day restructuring process.

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“This means we will continue to work hard for our employees, suppliers and dealers to enable this company to survive in the long term. After all, we are talking about a commercial location and an Austrian brand that is well known from Los Angeles to Sydney.

“The most important thing is to save as many jobs as possible. Against this background, we are looking for new investors and working to reach a sustainable solution together with creditors. We have had good discussions with the banks in particular.

MotoGP and KTM

MotoGP racing requires significant financial investment, with bike development and team operations often costing hundreds of millions of dollars. KTM is confident in its MotoGP program and will compete in the 2025 season.

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In an effort to rein in expenses, Pierer Mobility is revamping its approach to motorsports. The Husqvarna and GasGas brands will exit Moto2 and Moto3, and the KTM Dakar Rally Team has reduced its 2025 line-up to three riders. Under its KTM brand, the company will operate two MotoGP teams.