KTM has been forced to pause the development of its MotoGP project amid the huge financial crisis facing the Austrian manufacturer.
It was revealed by Austrian credit union AKV that KTM’s has debts of around €3 billion euros, a number bigger than what was first believed.
In recent months, KTM has undergone a major restructuring, with several branches of the parent company being split off while the racing division was placed under KTM Racing GmbH.
The restructuring process had appeared to make the racing division safe, however the amount of debt the company is in is larger than what was originally thought and it has now been announced that development will stop over the MotoGP winter break.
The pause in development of the RC16 is cited as one of the measures to keep the Austrian manufacturer’s sporting programmes running following its filing for insolvency last week while it looks to create a debt repayment plan.
This means that there will be no changes on the bike ahead of pre-season testing in Sepang, while upgrades at the recent Barcelona test were limited to new faring and some new screens.
Despite the financial concerns, KTM has assured its teams and riders that it will be on the grid in 2025 with all four of its bikes, however there are potential doubts from series organisers Dorna as to whether there will be four KTMs lining up on the grid in Buriram.
It is also expected that the Austrian manufacturer will announce a strategic plan in the coming days, which will see the isolation of the sporting division within the company.
According to those inside the company, it considers it essential to keep the racing teams running as it would likely cause even more damage to the company’s image as well as cause an impact on the already dwindling sales.
Pit Beirer: KTM ‘ready and waiting’ for 2025 MotoGP season
KTM’s head of racing Pit Beirer has provided some positive insight as to whether KTM will be taking part in the 2025 season despite its financial crisis.
Speaking to Austrian newspaper Kronen Zeitung, Beirer said: “Fortunately, the bike for the next season is ready and waiting in the workshop.
“The start of the 2025 season is organised and MotoGP has stopped engine development for 2026, which helps us immensely in the current situation.
“In technical terms, the motorcycles will no longer make any major leaps and in 2027 the plan is to make some changes, for example to ride-height devices or aerodynamics. The new 850cc engines are also coming.
“At some point, however, we will have to start building these new motorcycles. And until it is clear how we are going to proceed, these plans are currently on hold.”
He also explained the importance that KTM continue to take part in the racing series, as it is “the best platform” to promote the company on a world stage.
“You also have to bear in mind that we represent and promote KTM in all the championships we take part in,” he explained.
“Motorsport is the clear identifier for KTM around the world and the best platform.
“Every KTM sold carries the spirit of motorsport involvement and every title we win. Giving up is not an option in racing either.”
When asked about KTM’s struggles earlier in the year, Brad Binder admitted the only way he could help the team was by winning races.
“The only thing I can try to do is win some races, what wins on Sunday sells on Monday – so that’s my new motivation here.”
