KTM is facing a major challenge. The Austrian company entered self-administration in December 2024 to avoid bankruptcy. Now, the company is working on a rescue plan while trying to secure new investments to survive.

Steps to Recovery

To tackle its financial problems, KTM has taken bold action. The company has paused its production, laid off more than 700 employees, and put its majority stake in MV Agusta up for sale. These moves aim to cut costs and raise money quickly.

At the first creditors' meeting on December 20, 2024, there was still hope for KTM’s future. However, it was also confirmed that KTM plans to leave MotoGP, with the exit scheduled for 2026. For now, KTM will continue racing in 2025, but the situation remains uncertain.

Race Against Time

By February 25, 2025, KTM needs to secure €540 million in investments to get approval for its restructuring plan from creditors. This is a critical deadline, but there’s some good news. KTM’s share value has jumped by almost 70% in the last month, showing that investor confidence is growing day by day.

Big players like Bajaj Auto and CFMoto, who are already shareholders, are reportedly ready to invest more money in KTM. There’s also interest from Hong Kong-based investment firm FountainVest, which could bring fresh funding. These developments give KTM hope for a brighter future.

CEO Stefan Pierer’s Commitment

KTM CEO Stefan Pierer has promised to personally help the company by using his own finances. He’s also planning to sell some of the company’s assets to raise funds. However, these efforts might mean Pierer will have less control over the company he built into a global leader.

Cutbacks to Stay Strong

To survive, KTM may need to let go of some projects, like its bicycle division and the KTM X-Bow car business. In motorsport, KTM has already cut back by pulling its GASGAS and Husqvarna brands from Moto2 and Moto3.

Motorsport boss Pit Beirer said the racing division is following a 100-point survival plan. Part of this includes exploring new partnerships, like the reported discussions with Lewis Hamilton’s team about a possible investment.

The Road Ahead

KTM’s challenges are far from over, but growing interest from investors and bold decisions provide a glimpse of hope. The next few weeks will decide whether KTM can keep its place as a leader in the motorcycle world. For now, it’s a fight to protect the brand’s legacy and future.