DThe deadline was particularly tight: KTM had to raise around 23 million euros by Friday, May 600, to avoid bankruptcy. That mission has now been accomplished, thanks to a significant capital injection from a long-term partner of the Austrian motorcycle brand. It was the Indian industrial group Bajaj that saved KTM from collapse at the last minute. There is therefore cautious relief in Mattighofen today.
By enabling KTM to pay off 23% of its debt on May 30, as stipulated in the recovery plan, Bajaj is offering the Austrian manufacturer a lifeline. Bajaj is not formally taking control of KTM – it is maintaining its existing 49% stake in KTM AG – but is significantly strengthening its influence within the company. This almost miraculous investment naturally gives Bajaj a key role in all future strategic decisions of the group.
Although KTM has been saved for the time being, the brand faces a major challenge: reinventing itself to offer a sustainable future perspective. In this context, it was announced that founder and CEO Stefan Pierer, who has been under fire for alleged mismanagement, will step down from his executive functions next month. It now remains to be seen whether KTM, under increasing Indian influence, will succeed in maintaining its European, and in particular Austrian, roots – especially since part of the production has been transferred to India for some time now. The brand's significant investments in European motorsport competitions could also be reconsidered.
For now, KTM is trying to calm things down. In an official statement, the company states that the historic site in Mattighofen will remain the beating heart of the group. Production is supposed to resume there at the end of July, despite an estimated stock of around 250.000 motorcycles.
