
KTM In Financial Trouble; Seeks 100 Million Euros For Staying Afloat
KTM finds itself in financial trouble, with a significant slowdown in US and European sales among other things.

rob
I agree. I own two KTMs, and one of them has the "camshaft failure prone" LC8c engine (not failed yet, time will obviously tell). Bad enough KTM already had a reputation for quality problems, then this camshaft issue comes up and they refused (still refuse) to address it head-on, and that has lost them a TON of what little quality reputation they may have had.I think KTM needs close and honest look at their quality issues. They’ve come home to roost now.
Yep, that sounds about right.One of their Board Members summed it up well with this:
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“We damaged the KTM brand with overproduction and quality problems and now we have to iron that out,” said Hubert Trunkenpolz, Pierer board member, in an interview with Motorrad a couple of months back. COVID was one of the primary reasons for the crisis, according to Trunkenpolz, who explained that the pandemic led to a huge demand for quarantine-friendly recreational vehicles like motorcycles, bicycles, and RVs.
But sadly, by the time the company had increased production to catch up, the demand had started to decline sharply. Post-COVID, there were suddenly a lot of goods in the showrooms, but far fewer customers – partly due to post-pandemic inflation.
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My concern is that this analysis is still KTM not being honest with themselves and facing facts. The statement makes it sound like quality issues have only been recent and due to Covid. They still have blinders on as their quality issues go way back before Covid. Airboxes that did not seal, swarf remaining after machining processes, to name a few. They can’t blame this all on how they handled Covid.One of their Board Members summed it up well with this:
"
“We damaged the KTM brand with overproduction and quality problems and now we have to iron that out,” said Hubert Trunkenpolz, Pierer board member, in an interview with Motorrad a couple of months back. COVID was one of the primary reasons for the crisis, according to Trunkenpolz, who explained that the pandemic led to a huge demand for quarantine-friendly recreational vehicles like motorcycles, bicycles, and RVs.
But sadly, by the time the company had increased production to catch up, the demand had started to decline sharply. Post-COVID, there were suddenly a lot of goods in the showrooms, but far fewer customers – partly due to post-pandemic inflation.
"
you forgot about their massive stock buy back…..with borrowed moneyFrankly, I'm surprised that the number of HD dealerships going belly up doesn't look more like a Stalinist purge than it already does. They've been a truck going downhill without brakes since 2014, and their debt has got to be massive, based on their expansion back in the early to mid 2000's. Got to be a lot of dealership owners that are afraid to open their mail.
I confess that I don't keep up with all the financial shenanigans of the MoCo any more, since my Harley days are well over a decade in the past. The fact that the CEO is a typical financial wonder bro who formerly ran Puma pretty much told me all I needed to know about the future of the Bar and Shield. I'm probably too cynical though, since the ability to sell overpriced discount sneakers obviously makes Jochen Zeitz the ideal person to chart the course of a motorcycle company with a 120 year history. I'm sure the markets for both products have massive overlap.you forgot about their massive stock buy back…..with borrowed money
I'm seeing Ram trucks marked 25% or more off sticker. I saw a post yesterday of a new 2025 model marked down to $41K and sticker price was $62K.Fox Business reported this morning there are @ 3,000,000 new cars and trucks that have been sitting on dealer lots for more than 60-120 days.
One problem I had with RAM was the availability of mechanics at the dealerships, much less available parts. When I had my RAM diesel, even in '22, if I had a warranty issue, it would take two weeks to get the mechanic to look at it, much less get the parts. Talking to some friends, they still have that problem in a number of areas around the U.S. Breaking down 400 miles from home, and 4 dealerships around me all saying 2-3 weeks just to see the truck was my last straw.I'm seeing Ram trucks marked 25% or more off sticker. I saw a post yesterday of a new 2025 model marked down to $41K and sticker price was $62K.
I don't think they're ignoring the facts; I think they're just separating their business history into pre COVID and post COVID. I think before KTM's expansion and surge in popularity, they were a lot like other companies that had a dedicated core audience that loved their product and were willing to accept that the product they loved had flaws. Harley guys, Ural owners, classic British sports car collectors, etc. The kind of people who love the vehicle to death, and even though they'd spend hours on forums complaining about this or that, their love for that bike or car can't be dulled by the reality of "this damn thing is broke again!". The surge in popularity of a product like that brings in a whole new type of buyer; they want it because it's cool now, or trendy, or badass, but they aren't oriented the way the core buyer was. They don't have the same abiding love for the product; they (reasonably) expect it to work they way that Toyota Camry in their driveway works. They aren't willing to eat the same shit from a corporation as they diehards are; they don't accept that brand new camshafts disintegrate, or radiators constantly spring leaks, or the corporation is very shifty about honoring warranty work. For that sort of buyer, one bad experience with a really expensive bike with a really expensive flaw is enough for them to say sayonara and move on to another brand, or to lose interest in the activity entirely.My concern is that this analysis is still KTM not being honest with themselves and facing facts. The statement makes it sound like quality issues have only been recent and due to Covid. They still have blinders on as their quality issues go way back before Covid. Airboxes that did not seal, swarf remaining after machining processes, to name a few. They can’t blame this all on how they handled Covid.