I do not know in the event you’ve heard, however KTM is in some severe bother. Other than layoffs, insolvency hearings, MotoGP improvement pauses, and a culling of the board, it actually hasn’t bought all that many bikes over the past 12 months. What number of hasn’t it bought you ask?
How does a 12 months’s price sound? Or to place it into precise numbers, 265,000 unsold bikes. Low wolf whistle…
In line with the German publication Der Normal, the quantity got here out in the course of the firm’s insolvency hearings, wherein collectors, stakeholders, and an insolvency choose, 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 had been primarily based on administration selections, together with these round overproduction.
Picture by: KTM
“In his presentation, lawyer Vogl additionally went into the causes of insolvency and likewise labored out a lot of administration errors,” reads Der Normal, including, “In 2023, gross sales had elevated; though demand had decreased, bike manufacturing was not lowered. 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 are actually in inventory – that is what number of are normally bought in a 12 months.”
Emphasis mine.
That, pricey buddies and readers, is numerous 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 quit and get them off your tons? That is simply so many unsold bikes.
Der Normal additionally mentions that the corporate’s future is determined by outdoors traders coming in, with Bajaj being the most probably. 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 essentially the most half, out of contact with the buyer. I might 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 sequence, its small displacement bikes, which had been relegated to the rear of the stand and, regardless that they’re all-new, weren’t debuted with any kind of data. These may’ve been the bikes that saved KTM from itself, but, the bosses did not care.
I ponder how that is going to have an effect on dealerships long-term and whether or not they’ll simply quit and value these fashions insanely low-cost. I imply, what is the various? Maintain onto them indefinitely? I do not suppose so.
That mentioned, if y’all discover a 1390 Tremendous Duke R for below $7,000, electronic mail me.
