I do not know for those who’ve heard, however KTM is in some severe hassle. Except for layoffs, insolvency hearings, MotoGP growth pauses, and a culling of the board, it actually hasn’t offered all that many bikes during the last 12 months. What number of hasn’t it offered you ask?
How does a 12 months’s value sound? Or to place it into precise numbers, 265,000 unsold bikes. Low wolf whistle…
In keeping with the German publication Der Commonplace, the quantity got here out through the firm’s insolvency hearings, wherein collectors, stakeholders, and an insolvency decide, selected the way forward for the corporate’s restructuring plan. In these proceedings, legal professionals argued that the overwhelming majority of the problems that led to KTM’s insolvency have been based mostly on administration choices, together with these round overproduction.
Picture by: KTM
“In his presentation, lawyer Vogl additionally went into the causes of insolvency and likewise labored out numerous administration errors,” reads Der Commonplace, including, “In 2023, gross sales had elevated; though demand had decreased, bike manufacturing was not diminished. From the ensuing storage construction, the liquidity requirement elevated by round 440 million euros between January 2023 and October 2024. Greater than 265,000 bikes at the moment are in inventory – that is what number of are normally offered in a 12 months.”
Emphasis mine.
That, expensive buddies and readers, is lots of freakin’ unsold bikes. The quantity is clearly worldwide, not simply in the US, however nonetheless appears insane to me. And insane that I am not listening to extra about dealerships slashing stock costs greater than I’ve been. Granted, they nonetheless have to make some cash on these bikes, however at what level do you simply hand over and get them off your heaps? That is simply so many unsold bikes.
Der Commonplace additionally mentions that the corporate’s future is determined by exterior traders coming in, with Bajaj being the more than likely. Likewise, there are rising voices for Stefan Pierer, the corporate’s CEO, to be ousted for all of the mismanagement. Which is not shocking in any respect given the state of issues.
However woof, 265,000 unsold and sitting bikes. That is simply so many. It additionally factors to an organization that was, for probably the most half, out of contact with the patron. I would talked about that I believed this when it returned to EICMA this 12 months, because it put all its efforts into $20,000 bikes, stuff most individuals cannot afford proper now. There was fanfare for every thing however one collection, its small displacement bikes, which have been relegated to the rear of the stand and, regardless that they’re all-new, weren’t debuted with any form of info. These might’ve been the bikes that saved KTM from itself, but, the bosses did not care.
I’m wondering how that is going to have an effect on dealerships long-term and whether or not they’ll simply hand over and worth these fashions insanely low-cost. I imply, what is the different? Maintain onto them indefinitely? I do not assume so.
That mentioned, if y’all discover a 1390 Tremendous Duke R for below $7,000, e mail me.
