KTM is taking steps to protect its MotoGP division while it waits for a savior

pedro acosta He was at home when he learned of the technical glitch in which KTM has found itself, just after the great revelation of the 2024 MotoGP championship, with the most podiums of the Austrian manufacturer’s rider line-up in its inaugural season of sixth. Was at the place.

The seriousness of the situation, particularly the declaration of bankruptcy by KTM’s parent company Pierer Mobility, followed by the initiation of a bankruptcy process managed by Citibank, prompted Acosta to make a second visit to the racing division headquarters in Mattinghofen to obtain more detailed information. to be done. Incidents. Meeting with Pit Bearer, the brand’s racing director, helped reduce stress And, for Acosta – who traveled with his manager Albert Valera – it was heartbreaking to hear of his commitment to remain in MotoGP, the leader of its racing activities.

The exit from MotoGP, Moto2 and Moto3 is cited as one of these in a report published by the Alpine Creditors Association (AKV) following the first meeting of the insolvency process. Measures that should be taken to control costsAccording to the information published by derstandardReferring to the report that KTM itself requested from Boston Consulting Group, The move was later scheduled for 2026,

The manufacturer responded, “KTM maintains its strong commitment to motorsport. We reiterate our statement for 2025: we will continue to compete in MotoGP.” KTM continues to work with the intention of maintaining its presence in various competitions, which is important to its identity; It is important to remember that the brand’s slogan is ‘Ready to Race’.

Obviously, the weakest link in the entire structure are the hundreds of employees who have lost their jobs, who are yet to be paid their dues, as well as the suppliers who are owed money. The mood of the executives currently leading KTM keeps changing day by day. The most visible face is that of company CEO Stephane Pierer, who is directly responsible for the overstocking of motorcycles that has caused KTM’s real estate to skyrocket, accumulating debts of almost €3 billion.

“What happened is pretty amazing. I remember being at dinner with Pierer at the end of 2022, where he was already warning us about the sales crisis projected for 2024. He told us to be prepared. What is not understandable is that as a great businessman and boss of all of us, he took no action and production continued at maximum capacity,” an internal KTM source estimated at Autosport. Referring to the storage of more than 250,000 motorcycles.

In recent weeks, Pierer has taken a step back in the management of the sports sector, leaving decision-making to Heinz Kinnigadner, a person he has full confidence in and who is also a partner in the brand. The value of Pierer Mobility’s shares reached an all-time low on 28 November, falling below €8. The announcement of insolvency proceedings a month later had a revitalizing effect on potential investors who were waiting for the opportunities offered by KTM.

Some, such as Lewis Hamilton, were keen to take over the reins of the MotoGP team. However, Autosport understands that Ferrari’s proposal for new signings for the upcoming Formula 1 season will not be successful, as whoever takes control aims to capitalize to save not just their racing division, but the entire company.

Apart from Bajaj, which already holds 40% shares of KTM, CF Moto (China), which is already a partner of the group but currently holds no shares, should also be considered in this scenario . Another possible candidate could be Mercedes, which has Pierer himself present at the highest-level meetings from 2023.

KTM’s leadership is fully confident that they can keep their racing arm afloat, as it is an independent company. But the riders who remain under his wing aren’t sure it will come to fruition

In August, the Austrian entrepreneur signed off on the sale of a 50.1% stake in Leoni, a German multinational dedicated to the manufacturing of automotive wiring, to the Chinese Luxshare Group, an operation that earned him a seat on Mercedes’ board of directors. On a smaller scale, others like Maverick Vinales also acquired a package of shares which, in a month, has already generated a 200% profit on the invested capital.

Autosport understands that KTM’s leadership is confident that they can keep their racing arm afloat, as it is an independent company. The point is that the riders who remain under their wing are not at all sure that this will be accomplished, and they have been making moves for several days. The one making the most of it, because his reputation is the best, is Acosta, who has a line of suitors waiting for the orange bike maker to collapse.

“All the factories have contacted me asking how Pedro is doing, and wishing that this whole situation doesn’t affect him,” Valera told Autosport’s Spanish sister site ‘Por Orejas’ podcast. “I’m sure they will all help us when we need to consider an alternative. We’re talking about a 20-year-old diamond, and any brand would be excited to have his services.

“I cannot allow Pedro’s market value to fall. My job is to secure a winning project as quickly as possible. If I feel that whatever is happening could affect Pedro’s chances, then I will start moving forward to make sure he has the necessary equipment to be able to compete for the MotoGP title.”