I don't know if you've heard, but KTM is in some serious trouble. Aside from layoffs, insolvency hearings, MotoGP development pauses, and a culling of the board, it really hasn't sold all that many motorcycles over the last year. How many hasn't it sold you ask?
How does a year's worth sound? Or to put it into actual numbers, 265,000 unsold motorcycles. Low wolf whistle...
According to the German publication Der Standard, the number came out during the company's insolvency hearings, in which creditors, stakeholders, and an insolvency judge, decided on the future of the company's restructuring plan. In these proceedings, lawyers argued that the vast majority of the issues that led to KTM's insolvency were based on management decisions, including those around overproduction.
"In his presentation, lawyer Vogl also went into the causes of insolvency and also worked out a number of management errors," reads Der Standard, adding, "In 2023, sales had increased; although demand had decreased, motorcycle production was not reduced. From the resulting storage structure, the liquidity requirement increased by around 440 million euros between January 2023 and October 2024. More than 265,000 motorcycles are now in stock – that's how many are usually sold in a year."
Emphasis mine.
That, dear friends and readers, is a lot of freakin' unsold motorcycles. The number is obviously worldwide, not just in the United States, but still seems insane to me. And insane that I'm not hearing more about dealerships slashing inventory prices more than I have been. Granted, they still need to make some money on those motorcycles, but at what point do you just give up and get them off your lots? That's just so many unsold motorcycles.
Der Standard also mentions that the company's future depends on outside investors coming in, with Bajaj being the most likely. Likewise, there are growing voices for Stefan Pierer, the company's CEO, to be ousted for all the mismanagement. Which isn't surprising at all given the state of things.
But woof, 265,000 unsold and sitting motorcycles. That's just so many. It also points to a company that was, for the most part, out of touch with the consumer. I'd mentioned that I believed this when it returned to EICMA this year, as it put all its efforts into $20,000 motorcycles, stuff most people can't afford right now. There was fanfare for everything but one series, its small displacement bikes, which were relegated to the rear of the stand and, even though they're all-new, weren't debuted with any sort of information. These could've been the motorcycles that saved KTM from itself, yet, the bosses didn't care.
I wonder how this is going to affect dealerships long-term and whether they'll just give up and price these models insanely cheap. I mean, what's the alternative? Hold onto them indefinitely? I don't think so.
That said, if y'all find a 1390 Super Duke R for under $7,000, email me.