KTM, which is known for its amazing motorcycles across the globe, is now having tough times. The Austrian company needs more than 100 million Euros in order to avoid economic crisis, reported Autocar India citing the company’s press release. It is in contact with banks as well as shareholders for the purpose of funding. KTM is currently owned by Bajaj Auto and European businessman Stefan Pierer.
“The Executive Board is currently working on securing the financing of KTM AG, in particular on a bridge financing in the three-digit million range. To this end, discussions are ongoing both with the core shareholder Pierer Bajaj AG and with existing financial creditors. The aim is to agree a standstill agreement with the financial creditors involved for the duration of these discussions as basis for the financial restructuring,” said the press release of PIERER Mobility AG.
As the negotiations and discussions were in the early stage it is not possible to make concrete statements about the outcome of the negotiations, mentioned the company. The executive board of the company is also making an effort in order to provide stable operation. The company also wants to reduce inventories at both KTM AG and it dealers. It wants to reduce operating expenses by cutting down production in Europe.
We are not sure whether Bajaj Auto will use this situation in its own advantage and increase its stake in KTM. Currently, Bajaj Auto holds 49.90 percent stake in KTM through Pierer Bajaj AG. Bajaj Auto had purchased 14.5 percent way back in 2007.
KTM aims to stabilise costs and sales from the 2025 financial year and create profitability.
In India, KTM has entered the big bike market with four models- 890 Duke R, 890 Adventure R, 1290 Super Adventure S and 1390 Super Duke R.
