KTM to exit MotoGP in 2026 amid bankruptcy proceedings

KTM could leave MotoGP and its support classes in 2026, as the Austrian manufacturer undergoes a wide-scale restructuring under administration.

A possible exit from MotoGP was mentioned publicly for the first time on 20 December. A report presented by the Alpenländischer Creditorenverband (AKV) following a meeting with creditors in Austria said that “to reduce costs, an exit from MotoGP Moto3/Moto2 is planned”.

Now, Austrian newspaper der standard have reported that “KTM wants to say goodbye to motorsport from the 2026 season, specifically the MotoGP, Moto3 and Moto2 road racing series”.

This may also explain why KTM released a statement reiterating that it will be racing in MotoGP next year,

Management expects there will be “significant PR damage” if KTM is forced to end its MotoGP program early, and so the company does not want to exit the championship until 2026.

KTM has valid contracts with four of its riders pedro acosta, brad binderMaverick Vinales and anea bastianini Until the end of the 2026 season.

The Austrian company has also signed a firm deal with MotoGP promoter Dorna until the end of the current regulation cycle in the same year.

The motorsport department at Münsterfing is said to be in talks with potential investors about its future. More details may emerge at a court hearing on February 25, 2025, when the restructuring plan for KTM AG and its two subsidiaries will be voted on.

Motorsport is a big spend for the flagship firm of Pierer Mobility Group, which is set to spend €95 million on racing in 2023.

KTM has been under self-administration since November 29 and its parent company recently submitted a restructuring plan to the Wales Regional Court in accordance with the Reorganization Ordinance (ReO). This includes approximately €250 million, which Pierer Industry AG intends to pay over two years.

If claims are met early, the company may face payment difficulties. Creditors have until January 31 to lodge their claims.

The restructuring plan under self-administration of KTM AG and the two subsidiaries will be voted on at the Ried im Innkreis Regional Court on 25 February 2025. Up to €3 billion is at stake.

There was good news for KTM’s workforce between Christmas and New Year, with broadcaster ORF reporting that they will receive their December salaries on time. That means, employees will get salary at the end of the month, while employees will get salary in mid-January.

Payment of outstanding November salaries and Christmas bonuses is to be processed in January through the Insolvency Pay Fund. Around 3,600 employees in Upper Austria are affected by the bankruptcy.