There's a classic scene in the movie The Naked Gun that reminds me of KTM's current predicament, and accurately sums up my feelings toward the Austrian manufacturer.
It shows the film's lead, Leslie Nielsen, right after chasing the film's bad guy and watching him careen into a fuel tanker. He's followed by an ICBM, then followed by a firework factory, and moves his way to the front of the crowd that had formed. And then, in a fit of perfect straight-man comedy, he tells them, "All right, nothing to see here. Please disperse. Nothing to see here!" as the entirety of what's going on behind him goes up in smoke, fireworks, and (of course) giant fireballs.
Why I thought of that scene when contemplating KTM's MotoGP future, I'm not sure. But let's consider the following.
Red Bull KTM's team principal Pit Beirer has previously come out and said that while KTM AG, which handles the customer-facing portion of the business is up a creek without a paddle, KTM Racing won't be affected by the current insolvency proceedings. Furthermore, KTM Racing also won't be affected by the layoffs, nor the employee furloughs, nor the consolidation of the business, i.e. MV Agusta being pushed by the wayside just 9 months after Pierer AG acquired a controlling stake.
But recent news of KTM pulling funding for FIM's Hard Enduro World Championship, along with a visit to KTM's Mattighofen factory by MotoGP phenom Pedro Acosta, have me questioning whether or not we should believe KTM and its statements at all. It certainly feels like the scene described above, "Nothing to see here, folks, move along!"
Fireworks intensify
I say all of this as we've been here before. Prior to its insolvency announcements, and its subsequent announcements of layoffs, being unable to pay its workers, saying that only KTM AG would be affected, etc, etc, the company stated that everything was hunky dory. Even Stefan Pierer, the man who owns the company, stated that he believed that the current restructuring would put the company in a better position moving forward. That was followed by KTM saying it was laying off more people, and those who remained with the company wouldn't be getting their December paychecks, nor their promised bonuses.
That may sound like a long way from affecting the MotoGP team, especially since every announcement about this insolvency points to how KTM Racing is a separate entity and not part of the restructuring plan. However, we know that KTM is already pausing the development of its 2025 entrant. You know, the bike that Pedro Acosta and Brad Binder are supposed to ride in just a few short months.
Furloughing employees, even possibly those who work on the MotoGP team and on its 2025 motorcycle, would likely put them behind. Furthermore, KTM just axed test rider Jeremy McWilliams who had been the team's development and test rider for 15 years, and whose contract was supposed to last until the end of next year. All of this goes toward the idea of KTM's insolvency actually affecting the MotoGP team, despite what Beirer or anyone else may say to the media.
More recently, however, our friends at Motorsport reported that Acosta had gone to Mattighofen to view the program and its status. And while Acosta seems to be "relieved," I can't help but get a feeling of unspoken subtext in the statements offered.
Acosta's visit comes after the development pause, as well as statements made by the young rider in that he was worried about KTM's upcoming season. The Spaniard was one of the highlights of last season, marking him as a potential world title contender. It's also why KTM brought him up from the junior GasGas team.
"Pedro and I had the opportunity to travel to Austria to see in person the real situation of the KTM project in MotoGP," Albert Valera, Acosta's manager, told Motorsport, adding, "Despite the delicate situation that the company is going through, the feeling is positive. We have been told at all times that racing is the essence of KTM, that they will continue working with the sole objective of winning the title. Pedro is committed to the project and feels more relieved and confident after the meeting."
However, recent rumors point to Acosta possibly already jumping ship to Ducati or one of its satellite teams. And the "delicate" situation might be one that Acosta and Valera wish to not entangle themselves with, especially given Acosta's natural talents and true potential to become a world champ. [At the very least, it's most likely why Acosta's tour of the factory had the timing that it did.jj]
Nor would you blame Acosta for entertaining such potentials. Even though KTM has remained steadfast in its public-facing comments that the MotoGP team isn't going anywhere, and also that racing is part of who they are, KTM literally just pulled the funding it was set to give the FIM Hard Enduro World Championship. Which, if you're playing at home, is an important part of its racing heritage, and is why many folks even know KTM.
As of this week, KTM told WESS Promotion GmbH, the folks who put on the FIM Hard Enduro World Championship, that it would no longer be a title sponsor. That, in combination with Red Bull's pulling out of the series as well, left WESS Promotion GmbH to declare insolvency, too. Likewise, Kailub Russell, one of the most winningest off-road riders around, also left KTM this month. Coincidence?
Late last month, after rumors began swirling about KTM's MotoGP future, I reached out to Red Bull to ask about the brand's partnership with the team. They replied, "At this time, we’re directing everyone to the KTM statement found here," and offered up a link to Stefan Pierer's original statements about the insolvency and future of KTM. Those statements also included that the MotoGP team would not be affected. That, however, isn't exactly a resounding backing of the team, the company, nor of its prospects for the future of MotoGP. It seemingly leaves the door wide open for Red Bull to find a new partner.
But I want to leave you with one last thought.
Earlier this year, our friends at Motorcycle.com went to Austria to check out the new and state-of-the-art factory KTM had built. RideApart wasn't invited, FWIW. And while it was mostly a typical press junket, touring the facility and riding some bikes, all while being plied with all-you-can-eat shrimp, one thing stood out to Motorcycle.com's Troy Siahaan.
He writes, "Ostensibly, we were invited by KTM to learn about how new models come to life, to see the production facilities, and to better understand the company from the inside. Everything we’d seen was about how the company made motorcycles, all the way down to the raw materials brought in to produce frames, swingarms, and exhausts all in-house."
However, things got weird when KTM's Chief Security Officer began refuting media coverage. "This is why it seemed strange for then CSO Florian Kecht to speak to the assembled media rebutting claims he saw about an impending bankruptcy and the demise of the company," wrote Siahaan, adding, "These weren’t reports filed with creditors, or investigative reports from business journals – Kecht was specifically refuting YouTube videos. I, along with others in attendance, thought it was very odd for someone at the C-suite level to be addressing YouTube videos. But it was also odd considering our day was filled with KTM trying to show us its commitment to quality and to see 'how the sausage is made,' so to speak. As it turns out, Kecht was indeed trying to get ahead of a potential avalanche – one that ultimately cost him his position on the board."
That's all to say, KTM absolutely knew it was in trouble. It knew that things were going to hit the fan. And rather than speak to the media about those potential issues, KTM decided to pull a Leslie Nielsen, "Nothing to see here. Move along."
So when I read the latest on KTM's bright MotoGP future, whether it's from Acosta's manager, Beirer, KTM itself, or anyone else, I can't but give it the utmost side-eye, "Uh huh, sure" I can possibly give without pulling a muscle.
Will I be right? I don't know, but it sure looks like there is "something to see here," and I also know that RideApart won't be moving along anytime soon.
