KTM...What Happened?

KTM Has 265,000 Unsold Bikes Just Sitting Around

Management committed to overproduction even after demand fell off

Legendary Austrian motorcycle brand KTM is up against the ropes at the moment getting pummeled. It was revealed during the company’s current insolvency hearings that it is sitting on a whole year’s worth of inventory, to the tune of 265,000 unsold motorcycles. In all my years on this big planet I’ve never seen company mismanagement on this order of magnitude. KTM owes its creditors some $3 billion, and apparently can’t move product to save its own ass. The future of orange is up in the air, and it probably won’t be a soft landing.

How the hell do you overbuild an entire year’s worth of inventory? The brand was hitting record sales numbers in 2023, and management apparently decided to crank up production, but never cranked it back down. A rough 2024 left the orange bike maker insolvent and loaded with unsold inventory and unpaid staff. The brand has resorted to layoffs, restructuring, and halting its MotoGP development program. KTM is rumored to pull out of MotoGP altogether, though denies it.

Predictably, almost all of this turmoil can be pinned on billionaire company CEO and corporate holdings company namesake Stefan Pierer. Management pushed KTM into overproduction for several months, despite plummeting sales.

Reports from Germany’s Der Standard indicate this number was disclosed during KTM’s insolvency hearings. Because outright bankruptcy would leave thousands of workers in the lurch, the Austrian government is pushing for a restructuring of the company’s debt, holding hearings with creditors and stakeholders to attempt to paint a way forward for Big Orange. Lawyers have argued that KTM’s issues stem from mismanagement, and that blue collar employees should not be punished for the missteps of their wealthy overseers

“In his presentation, lawyer Vogl also went into the causes of insolvency and also worked out a number of management errors,” says Der Standard, adding, “In 2023, sales had increased; although demand had decreased, motorcycle production was not reduced. From the resulting storage structure, the liquidity requirement increased by around 440 million euros between January 2023 and October 2024. More than 265,000 motorcycles are now in stock – that’s how many are usually sold in a year.”.

What’s the way forward for KTM? It seems likely that an outside investor will step in and rescue the ailing motorcycle manufacturer. India’s Bajaj already owns 49.9 percent of the company, and seems likely to increase its holdings for greater control of the restructuring. 49.9 percent of nothing is nothing, after all. 50.1 percent of the company is currently owned by Pierer Mobility. It seems likely that Stefan Pierer will be forced out of the company for his role in this disaster.

This case is one that will be studied in business schools for decades to come. Instead of burning cash in down times, it’s probably best to shore up your defenses and ride out the storm. What a fiasco!

KTM “fully committed” to customers

KTM delivers a strong message to customers during their current financial situation: “KTM guarantees the continuation of motorcycles being delivered through our authorised KTM Dealer network. The same goes for our spare parts, technical accessories, customer service support and warranties”.

2024 has been a year which, as KTM put it, brought “challenges” financially and has seen KTM AG currently in a 90-day period of self-administration which began on November 29, 2024.  

The message from the Austrian manufacturer as we head into a festive break is clear: “Heading into 2025 and the future, there are more jumps, ruts, and bumps ahead - but we are not letting off the throttle.” Expressed in a media release sent out today, December 20, 2024 which, though re-assuring for customers, does not mention staff it must be noted. 

The positive mantra seems to be aimed at reassuring its factory riders and race teams as much as, suppliers, dealers and customers we suspect, is to express they “remain fully committed to delivering exceptional experiences to our current and future customers” and that they will continue “to find our way to the top of the podium again”, pointing at the continuation of the racing programme which kicks-off at the Dakar Rally in early January.

KTM guarantee

KTM say the goal over the next 90 days is to stabilise the business while setting the foundation for sustained growth and success.

“Throughout this period, KTM guarantees the continuation of motorcycles being delivered through our authorised KTM Dealer network. The same goes for our spare parts, technical accessories, customer service support and warranties which remain unchanged, ensuring ongoing and unwavering support throughout this period.”

The ripple effect outwards from Mattighofen is already known to have affected businesses, suppliers and staff, and as of 24 hours ago, the Hard Enduro World Championship too.

Read more about that here: KTM’s financial woes affect Hard Enduro World Championship

There has been a strong push towards the end of 2024 also with new models aplenty appearing at motorcycles shows. KTM say the new models will be in dealer showrooms in the first quarter of 2025.

However, with staff being told to stay at home in the early months of the new year it is not exactly clear when those new models will arrive. By the same token this strong message from the company ahead of the festive holidays might be a last shout out while the staff take leave and the financial situation is formalised.

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2025 Super Cross Should Be Wild!

It’s almost here! Anaheim 1 kicks off Monster Energy AMA Supercross and the SuperMotocross World Championship (SMX) season on January 11. Every season starts with promise. Here are just some of the 450SX storylines to watch.

Webb the executor: The world finally understands how Cooper Webb wins supercross titles. He doesn’t blow you away with next-level speed or technique at any one time, but he executes to perfection and puts pressure on everyone else to match his consistency over five months. Run any one race in a computer simulation, and Webb probably isn’t the favorite. Run 17 races in 18 weekends, though, and he’s tough to beat. Everyone has a plan, but Webb always plans to disrupt that plan. It was working again in 2024, with Webb tied with Lawrence in points late. A thumb injury eventually took a toll. He didn’t win the title, but he reminded everyone to never, ever, ever count Webb out of a championship chase. Why would this year be different?

The Prado Project: How will the two-time MXGP FIM Motocross World Champion do in supercross? Jorge has obvious talent and isn’t just some old-school motocross hammerhead. He rides with precision and technique, and he’s a dynamite starter. This is good for supercross. But he will be 24 years old at Anaheim 1, and didn’t get to use the 250 class to develop like Ken Roczen or Marvin Musquin did. He’s facing a steep learning curve. Word from the test track so far is that this is a work in progress, as you’d expect it to be. This will take time. But will he get there, eventually? It’s hard to imagine Monster Energy Kawasaki signed him only for his outdoor skills.

Which Anderson? On the other side of the Monster Kawi slate is Jason Anderson, who is tough to classify. In some years he’s right there with Eli Tomac, in other years he’s lost. Last year was a bit in between—he could have won Anaheim 2 and had podium-speed at several other races—but was slightly off at others. Anderson might have slipped into that “opportunist” stage of his career, where he knows what nights and what tracks work for him, and that’s when he goes for the gusto. However, his contract is up at the end of ’25, he wants to keep racing, and he always does his best work indoors. He needs to be good this season, and that makes him exciting to watch. If that’s not exciting enough, of course there’s that never-ending rivalry with the Lawrences, too.

How good is Hunter Lawrence now? It’s easy to create a narrative around Hunter Lawrence getting into a first-turn crash at Anaheim 1 and not making the main in the first race of the year, and then battling his brother Jett inch-by-inch for the SMX World Championship at the finale. That’s a heck of an improvement! As with most things in life, it’s more subtle than that, Hunter wasn’t DNQ-level slow at the start of the year, he just got banged up in that crash. In most of Monster Energy AMA Supercross, he was a 5-7 guy, which is exactly the way Hunter likes to build, culminating with a runner-up finish at the penultimate SX round. By the AMA Pro Motocross Championship and SMX, he was great. It’s all gone perfectly to plan. So, now where do you classify Hunter? Is he actually the closest guy to Jett, like he was in SMX? Is he right in that Tomac/Webb/Sexton mix? Does he still need time to get there? We shall  see.

Is Aaron Plessinger a Player? They were “Chasing the Cowboy around” for a bit early in 2025, when double mud races threw everyone off and the popular AP scored a breakthrough win and led the points. After that he was still good, but just off the podium at most races before an injury (three podiums last year total). Plessinger still wants to take that last step to where podiums are normal, and wins come on the right nights. He keeps working and building. Can he find that early 2024 magic again?

Aaron Plessinger leading in the San Diego Supercross, which he ended up winning.Align Media

Still A Winner? When Ken Roczen won on a Progressive Ecstar Suzuki at Indianapolis in 2023, it was an emotional one. When he won at Glendale in 2024, it was just another race. By then everyone knew Ken and Suzuki could and would win again. Ken had a big injury last year in supercross, but he looked decent by the end of the year in the FIM World Supercross Championship (WSX). Every year we talk about the field getting tougher and faster. Will Roczen remain one of the guys who can win on any given night?

Eli Tomac’s Resurgence: We saw Eli Tomac on the track in 2024 Monster Energy AMA Supercross, but we didn’t really see him. You know? He wasn’t back to his old form following that big Achillies tear in 2023. What are we seeing now? Fast in his comeback during Pro Motocross, fast at the Monster Energy FIM Motocross of Nations, fast in WSX.

“I’m excited for 2025,” he said recently. “For me the most important thing was to do my best to come in healthy, and as of now, I am a lot stronger than I was the year before. In 2024, I felt like I had a rushed preparation time, so I’ve done a lot of racing leading up to this point, and it should keep me sharp. To be sharp, coming into Anaheim is going to be very important. As usual, it’s going to be a very packed gate with a lot of guys that can win. I believe I am in a better position than the year before. I’ve had good results with the off-season racing and will try and continue that in the New Year.” Eli will be better this year. Is that enough to be champion again?

It’s not about the bikes: Chase Sexton’s Monster Energy AMA Supercross title defense didn’t go very well. He finished third in points but only won two races. Sexton said last year his switch to Red Bull KTM would be a work in progress in supercross, and he was right. He’s spent this off-season saying he’s in a much better spot. So, are the problems solved? Can he beat Jett Lawrence? Sexton could be the most dynamic storyline of all this season. His high-end potential is up there with anyone, but he wasn't ready in 2024. Will he be this time?

Sophomore Jett: See the above list. Sexton should be better. Tomac should be better. Hunter Lawrence should better than last year. Webb will be as good as always. Roczen will be as good as always. Keep going. The pack is primed to attack the champion, Jett Lawrence. Jett, however, has an ace up his sleeve. He’s already AMA 450 Supercross Champ, but he did that in his first attempt! Riders generally get better in year two in 450SX, and even better in year three. Hard to believe that Jett, age 21, hasn’t hit his prime yet. That’s scary for everyone else!

Jorge Prado preps for A1 – almost time for Kawasaki debut!

After taking a week off following a crash that left Jorge Prado’s head ringing, the Spaniard, thankfully, had no major injuries and is back on track preparing for his Kawasaki debut at Anaheim one in two weeks time.

Prado has of course raced A1 before, last year, in what was his first ever supercross race, but that was a test run, this is the real deal. Prado has a three year contract with Kawasaki and has made the move permanently to the USA to chase his dream, the reality starts now as he starts the process to win an AMA title to go alongside his four FIM World motocross championships.

Prado is a thinker, a precision rider and non-risk taker but when he figures the bike, the tracks and supercross out, his talent is on the level of Jett Lawrence. Unfortunately for Prado, he is five years behind Jett on Supercross experience.

Avoiding injury and progressing will be the name of the game this season but he has a fast teammate to ride with who has won a supercross title and can still win races in Jason Anderson, he has a team who have won titles, he says he loves the bike, so now it is over to Jorge Prado to see just how quickly he can figure this Supercross game out so he can show America his immense talent and potential indoors and out.

America are in for a technical treat with Jett Lawrence and Jorge Prado on the gate together for the next few years. No one rides a bike more perfectly than those two!

Chase Sexton in the whoops – ready to win?

Chase Sexton is feeling a lot more confident coming into his second season on the KTM and, part of the reason is spending more time testing in Florida than California.

Interestingly, Sexton is now based full-time at the Bakers factory (he used the Motosandbox facility at times last year too) but he and Tom Vialle do their own program on site!

Sexton said at the SMX press conference: “This year I am solely at the Bakers factory doing my own program. The tracks are awesome there, the first is good. I got my own little home there, me and Tom, just been training there. I came out here (California) for a few days to do this stuff and the team photo shoot but otherwise I will be back in Florida doing my thing.

“Last year I was in California for a big stint of my off-season which I don’t like. I don’t think the testing or riding is as good out here so being back in Florida… I think that way has got me to a point this year where I feel better. Knowing the dirt, adapting to that and getting more flow on that kind of track is better for my riding and I think that is going to be a key for me this year.“

Expect Sexton to come in with a point to prove this year and with much more confidence at A1 in 2025 than he had in 2024… But with the KTM company issues, Sexton will have to block out a different form of outside noise that most of his other title rivals won’t have to deal with, even if it may not directly affect his future.