The Financial Challenges Facing KTM
In late November 2024, KTM, one of the world’s leading motorcycle manufacturers, declared bankruptcy due to mounting debts totaling nearly US$3.09 billion (€3 billion). The company has since entered self-administration under Austria’s insolvency laws, granting it a 90-day protection period from creditors1. This move is part of a broader effort to restructure and stabilize the company’s finances.
The financial troubles have led to a temporary halt in production at KTM’s Mattighofen factory until the end of February 2025. This pause aims to clear the backlog of unsold bikes, with approximately 130,000 units in stock, many of which do not meet the new Euro 5+ emissions standards. The halt in production is a significant step as KTM works to manage its inventory and reduce costs.
