KTM responds to financial crisis with bold statement in Austrian ad

Austrian manufacturer vows to recover after debt crisis, telling critics to "watch us."

Red Bull KTM Factory Racing Team logos are displayed on the left fairing before the warm-up session of the MotoGP Red Bull Grand Prix of the Americas at Circuit of The Americas in Austin, Texas, on April 14, 2024. Photo by David Buono/Icon Sportswire

By Anna Fadiah and Hayu Andini

KTM has taken out a full-page advertisement in an Austrian newspaper to publicly address its ongoing financial struggles, declaring its determination to recover and challenging skeptics with the phrase, “watch us.”

The Austrian motorcycle manufacturer, which entered self-administration in late November amid a severe financial crisis, has been battling to stabilize its business. KTM faced the risk of collapse after accumulating over €2 billion in debt, forcing the company into a restructuring process.

Last week, creditors accepted KTM’s plan to repay 30% of its outstanding debt, a crucial step in the company's recovery efforts. To meet this commitment, the manufacturer must pay €548 million, though recent reports suggest that KTM has secured investment pledges totaling up to €900 million from at least 23 different sources.

Additionally, KTM is set to restart production later this month after a €50 million injection from Bajaj Auto, which holds a 49% stake in the company. Production had been halted since December due to financial constraints.

KTM also confirmed a leadership shakeup, with long-time CEO and co-CEO Stefan Pierer stepping down from the board. Gottfried Neumeister has now taken over as CEO, tasked with navigating the company through this challenging period.

KTM issues passionate statement on recovery

In a bold move, KTM published an advertisement in Kronen Zeitung under the title Passion never goes bankrupt, emphasizing its resilience and commitment to overcoming adversity. The statement read:

“We were too fast and crashed out of the corner. But we’re getting back on our feet. The race goes on. The race for the future. The truth is, when your back is against the wall, there’s only one direction—forward.”

KTM’s message framed its financial struggles as a temporary setback, using racing metaphors to illustrate its determination to push ahead.

“It’s probably fate that we’re a company that builds vehicles without reverse gear. READY TO RACE isn’t just a slogan. It’s our inner drive.”

The company also emphasized the importance of perseverance, drawing parallels between its corporate struggles and the mentality of professional motorcycle racers:

“Our riders know that, if you fall, you have to get back on the bike as quickly as possible. That’s exactly what we have to do now.”

KTM further outlined its commitment to transparency and collaboration with stakeholders:

“We’ve learned from our mistakes. This also means that we listen more than ever to the people who accompany us—above all to our clients and our employees. We shouldn’t only reinvent KTM for ourselves, but together with you.”

The statement concluded with a direct challenge to critics who have doubted KTM’s ability to recover:

“To everyone who doubted us… watch us!”

Uncertainty over KTM’s MotoGP future

Despite KTM’s defiant stance, the company’s future in MotoGP remains unclear. An initial administrator’s report from December indicated that a withdrawal from grand prix racing was under consideration as part of KTM’s financial restructuring.

The manufacturer endured a difficult start to the 2025 MotoGP season at the Thailand Grand Prix, where Brad Binder finished eighth in the main race while rookie Pedro Acosta crashed out early.

KTM’s presence in MotoGP has been a significant part of its brand identity, and any decision regarding its continued participation could have major implications for the sport. However, with fresh investments and a restructuring plan in place, the manufacturer’s long-term strategy remains uncertain.

As KTM works through its financial recovery, the coming months will be crucial in determining whether the Austrian company can deliver on its promise to bounce back stronger than before.