I do not know if you happen to’ve heard, however KTM is in some serious trouble. Except for layoffs, insolvency hearings, MotoGP development pauses, and a culling of the board, it actually hasn’t bought all that many bikes during the last yr. What number of hasn’t it bought you ask?
How does a yr’s value sound? Or to place it into precise numbers, 265,000 unsold bikes. Low wolf whistle…
In accordance with the German publication Der Standard, the quantity got here out through the firm’s insolvency hearings, through which 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.
Photograph by: KTM
“In his presentation, lawyer Vogl additionally went into the causes of insolvency and likewise labored out a variety of administration errors,” reads Der Normal, 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 often bought in a yr.”
Emphasis mine.
That, pricey associates and readers, is lots of freakin’ unsold bikes. The quantity is clearly worldwide, not simply in the USA, 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 must 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 Normal additionally mentions that the corporate’s future will depend on outdoors buyers coming in, with Bajaj being the most definitely. 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 things.
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 buyer. I might talked about that I believed this when it returned to EICMA this yr, because it put all its efforts into $20,000 motorcycles, stuff most individuals cannot afford proper now. There was fanfare for every little thing however one collection, its small displacement bikes, which had been relegated to the rear of the stand and, although they’re all-new, weren’t debuted with any kind 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 various? Maintain onto them indefinitely? I do not suppose so.
That mentioned, if y’all discover a 1390 Tremendous Duke R for underneath $7,000, electronic mail me.
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