Tag - KTM restructuring

In a surprising move, KTM has decided to sever ties with MV Agusta, just months after acquiring a majority stake in the storied Italian brand. The decision comes as KTM faces a severe financial crisis, forcing the company to undertake major restructuring. KTM Financial Crisis KTM's parent company, Pierer Mobility AG, acquired a 50.1% stake in MV Agusta earlier this year. However, the motorcycle industry in Europe has been hit hard by supply chain disruptions, changing consumer preferences, and the transition towards electric mobility. These challenges have led to KTM's financial woes, prompting the company to drop MV Agusta from its portfolio. With this decision, MV Agusta is once again an independent motorcycle company. Production will move back to its historic Varese facility in Italy. Despite the separation, MV Agusta remains unfazed and continues to operate successfully. Restructuring Efforts KTM is now focusing on cutting its losses and becoming profitable again. The company is seeking funding upward of 100 million Euros to support its restructuring efforts. This move is part of a broader strategy to stabilize the company and ensure its long-term sustainability. The separation of KTM and MV Agusta has significant implications for both brands. KTM will continue to focus on its core strengths in off-road motorcycles and street bikes, while MV Agusta will resume its independent operations. The decision highlights the challenges faced by the motorcycle industry and the need for companies to adapt to changing market conditions. Looking Ahead As KTM navigates its financial crisis, the company still retains ownership of the Husqvarna and GasGas brands. These brands, along with KTM's continued partnership with Bajaj Auto, will be crucial in the company's recovery efforts. KTM India has not been affected as much by the financial crisis since it is backed by Bajaj Auto. Bajaj Auto has a 49% stake in KTM India. Also Read: KTM is struggling as a brand?