The news didn’t look good as it kept coming. Major financial issues for the Pierer Mobility Group, former parent company of a portfolio of brands including KTM, Husqvarna, and GasGas. The major factor? During the pandemic, KTM twisted the throttle and ramped up production and R&D, anticipating its competitors would pull back. The goal was a massive gain in market share. This had actually worked before, when KTM got aggressive in the wake of the 2007-2010 era financial crisis. At that time, Japanese brands got conservative and KTM pounced. By the time the giants woke back up, KTM was a much bigger player than it had ever been before. Thus, KTM wanted to play COVID-19 play in a similar: get aggressive, take advantage, make huge gains.
For a spell, it worked, because COVID also sparked a rush on outdoor recreation, and bike sales started soaring. So did bicycle sales, and Pierer Mobility was jumping into that market, too. It had also established itself as a street-bike company as well. Production ramped up, and for a year or so, KTM and its sister brands reaped the benefits.
Well, this time the aggression was too much. The company ended up running the production lines too hot and built far more motorcycles than it could sell. Worse, after the COVID boom the bicycle business started collapsing almost entirely, just as the company was making massive investments. It was all too much, debt piled up, and for a moment it looked like the company might not survive at all.
It did, but only with help from India manufacturer Bajaj, which had become a major partner decades ago, and completely came to the rescue this time. The Pierer Mobility name is now gone, and the parent company is now dubbed Bajaj Mobility. India came to the rescue of Austria. Now the company appears solid again as it rebuilds from its debt crisis. But changes will have to come, and in the area, we follow most closely—motocross racing—we’ve seen them.
When Pierer Mobility purchased GasGas, it hit the ground running, moving into the motocross space with immediate success. Justin Barcia won the very first round of Monster Energy AMA 450 Supercross the brand ever entered. Jorge Prado, a Spanish rider, moved from KTM over to GasGas to celebrate the Spanish brands’ heritage. He won races and titles, and all was well. Then the financial crisis hit, and something had to go… GasGas’ motocross racing efforts hit the chopping block. The brand still exists on the showroom floor, but not with factory racing at the big dirt bike races.
Now the spotlight was on KTM and Husqvarna. Would both survive? For a few years they did, but in the middle of 2026 KTM announced it was shutting down the Rockstar Energy Husqvarna factory effort. It was scary news at first, but the 250 program pretty much emerged intact, getting swallowed into an expanded Red Bull KTM 250 effort. The 450 tandem of Malcolm Stewart and RJ Hampshire, though, got sent packing. Luckily, they both ended up with new factory rides on other brands (Kawasaki for Stewart, Ducati for Hampshire).
The former Husqvarna 250 racers will be fine. Ryder DiFrancesco and Daxton Bennick move to KTM and have said repeatedly they will get an upgrade in performance. (The company always claimed KTM and Husqvarna were equals, but word has trickled out that the KTM riders usually got the latest, greatest parts first, and the Husky riders came second). KTM’s 250 SX-F Factory Edition will be all new for 2027 and promises big power gains. Bennick and DiFrancesco will be joined by the returning Julien Beaumer and MXGP MX2 sensation Sacha Coenen to form a powerhouse 250 team, led by former Rockstar Energy Husqvarna Team Manager (and former 250 Supercross Champion) Nate Ramsey. Note: the Rockstar Energy Husqvarna team's third 250, Casey Cochran, landed on his feet as well with a new deal with Monster Energy Yamaha Star Racing for 2027. He is no longer under the KTM umbrella of brands like he was the last handful of years but he still landed a great ride!
In the announcement of Rockstar Energy Husqvarna’s shutdown, the brand announced it would begin to support private teams to retain a presence at the highest level of racing. We now know what that looks like, and it looks very promising: Cooper Webb will race a factory-backed Husqvarna for Rocky Mountain ATV/MC Monster Energy Team Tedder. Coop gets access to the latest KTM parts and will be racing on the new-generation Husqvarna FC 450 Factory Edition. He can also, if he chooses, use other non-factory parts or components if he wants to, which means his team has both factory-level resources but rider-specific freedom. This is a model that is becoming more and more common to successful racing operations. Webb’s teammate Justin Hill should also benefit from this Husqvarna pairing.
Then comes the Husqvarna 250 operation, now spearheaded by AEO Powersports (formerly a KTM support team) and Toyota of Redlands BarX (formerly a Yamaha support team). Both squads have been thrilled over the promised level of financial and technical support promised by Husqvarna and say it’s a major step up from their previous deals. Full rider rosters have yet to be announced, but Carson Mumford is the leader of the AEO effort after a fantastic, resurgent season, and his contract has been extended several years already. Lux Turner is the headline star at Bar X for the moment. These are two talented, capable riders who likely have not hit their ceiling yet, and the additional resources from Husky can help.
"Partnering with the AEO Powersports and BarX Racing teams gives Husqvarna a strong platform in the 250 division as we enter a new chapter in SMX," explained John Hinz, CEO, Husqvarna Mobility North America, Inc. "Both organizations bring valuable experience and ambition, and we’re excited to support their efforts with our racing technology and technical expertise. Together with our new partnership with Team Tedder in the 450 category, this structure reinforces our commitment to professional racing while allowing us to strengthen our connection with the wider Husqvarna riding community. Racing has always been a foundation for the Husqvarna brand, and these partnerships create new opportunities to support talented riders and connect with fans. We look forward to seeing all three teams represent Husqvarna in 2027 and supporting their progress throughout the season."
"We are really looking forward to the change in brands, and now being one of the top Husqvarna-supported teams will help with our marketing efforts and add value to our partners in racing," said Jeremy Scism, AEO Powersports Owner and Team Manager. "A facelift is needed sometimes and we're excited to reintroduce the team for 2027 with an all-new look across all platforms. With the return of Carson Mumford, we are looking to make an even bigger impact on battling with the factory programs and hopefully continue our success from last season."
"We are extremely excited about this new direction for BarX Racing," said Myron Short, Co-Owner of BarX Racing. "Our time with previous OEMs has been an important part of our team's development and we sincerely appreciate the relationships and support we have received over the years. Moving to Husqvarna gives us an opportunity to build something special. We believe in the motorcycles, the people behind the brand, and the direction we're taking as a team. Our goal has always been to provide our riders with the equipment, resources, and professional environment they need to compete at the highest level. This transition is another step toward achieving that goal."
Trends follow success in this sport. Pipes Motorsports’ Suzuki squad just won a Monster Energy AMA Supercross Championship with Ken Roczen, backed by Progressive and Cycle Gear. Suzuki helps, but that is a private team showing what can be done. This is not a new model, as Chad Reed’s TwoTwo Motorsports team took the private plus factory model to the podium, as did San Manuel Yamaha, Chapparal Yamaha, and more. This new Husqvarna support could end up delivering more than just one factory Rockstar Energy Husqvarna in house team could do on its own.
"From the beginning, my vision for BarX Racing has been about much more than just putting motorcycles on the starting line,” said Paul Smith, Co-Owner of BarX Racing and President of Toyota of Redlands. “It's about building a first-class racing organization that gives talented athletes the opportunity to succeed. Toyota of Redlands has been proud to support this program, and I believe our transition to Husqvarna represents an exciting opportunity to take BarX Racing to the next level. We have made a significant investment in this team, our people, our riders, and our future. We're committed to giving them the right equipment, strong partnerships, and the resources needed to compete for podiums and championships. We value the experiences we had with other OEMs and look forward to building a strong, successful future with Husqvarna. This is more than a change in motorcycle manufacturers. It's a renewed commitment to winning, developing riders, and building a team that our sponsors, partners, and fans can be proud of."