KTM Goes Into Self Administration

KTM’s financial crisis has hit the company badly as CEO Stefan Pierer has announced that the brand is undergoing ‘self administration’ and a ‘strategic restructuring plan’ is being put into place. The plan is set into motion to get the brand back to a right path in the next 90 days. That means dramatic measures will come into effect including a rumoured production halt for sometime. 

While Pierer and co-CEO Gottfried Neumeister will remain in control of the brand during this period, a court-appointed restructuring administrator will be appointed to help the brand out. Creditors will be aimed to pay off in the immediacy with the aim to streamline product development and planning.

KTM’s debt rose from 300 million Euros a couple of years ago to an eye-watering 1.5 billion Euros this year, one of the key contributing factors being the acquisition of the MV Agusta brand. The latter hasn’t been kind to its many previous owners as well, the fate of Cagiva proves the same.

However, we hope that KTM does pull out of this financial mess in the best shape possible. Pierer mentions in his press statement: “Over the past three decades, we have grown to become Europe's largest motorcycle manufacturer.” So, while it looks like a troubled couple of years ahead for the marque, we hope that it does emerge to once again become the provider of emotionally charging motorcycles it has always been.