KTM Deny Plan To Pull Out Of MotoGP, Moto2, Moto3 - UPDATED

By David Emmett |

According to the report from the AKV agency on KTM's insolvency hearing held in Ried im Innkreis today, as one of the proposed cost-cutting measures, KTM is to withdraw from MotoGP, Moto2, and Moto3. Among the measures to be taken are the following:

Um Kosten zu reduzieren, ist der Ausstieg aus MotoGP Moto3/Moto2 geplant.

Translation: To reduce costs, a withdrawal from MotoGP, Moto3/Moto2 is planned. 

It is worth pointing out that a timeframe for a planned withdrawal is not mentioned.

The AKV is the agency charged with handling the debts owed by KTM to its creditors, and was represented in court at the insolvency proceedings.

However, asking around various sources suggests that KTM believes it will be able to continue its racing activities. One possibility being floated is for Red Bull to take over KTM's racing projects, as they have done in F1. 

In a statement from a KTM spokesperson, they said they would be racing in 2025. The statement read:

Today marks an important day for KTM with the confirmation of our restructuring proceedings. This milestone secures our plan moving forward, and we are proud to confirm that motorsport remains an integral part of this restructuring plan.

KTM stands firmly committed to motorsport. We repeat our statement for 2025: we will continue to race in MotoGP!

We are reenergised with today’s positive outcome and thank you for your support.

The statement repeats what was said in a video and news release on KTM's website put out on Thursday stating that they were intending to continue, and emphasizing once again that racing was a core activity for the brand. 

The full list of restructuring proposals included in the AKV report are as follows:

  • The sale of the shares in PIERER IMMOREAL GmbH was published in the edict file and offered for sale.
  • Payments to subsidiaries of the KTM Group that are not essential to operations have been stopped. As a result, several subsequent insolvencies of other KTM companies are now expected. The other two KTM companies, which are already insolvent, are essential to the continued operation of the KTM Group and will be financially supported by KTM AG by continuing to purchase the services and goods from them.
  • In order to reduce costs, the exit from MotoGP Moto3/Moto2 is planned.
  • In order to reduce production costs, the possibility of (partial) relocation of production is being examined.
  • Production is to be stopped until after the restructuring plan is passed.
  • Stock clearance at dealers

The report also confirms that KTM's financial problems came as a result of building up production to meet demand which was predicted but never materialized.

At the meeting, it also emerged that KTM had found €700 million in investment from three partners. Though Pierer Mobility Co-CEO Gottfried Neumeister refused to name them, he did confirm that current minority stake holder Bajaj Industries was one of the parties interested. That could lead to Bajaj taking a larger stake in the company.

This story has been updated with a response from KTM, denying reports they will not be racing in MotoGP.

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Comments

I can’t imagine the chaos this will cause across the entire GP paddock if it is true. It will make Suzuki’s withdrawal look like a well planned process by comparison. In Suzuki’s defence, at least their withdrawal only left two riders and one team hanging. If KTM pulls up and closes their racing efforts, numerous teams and riders will be left hanging. The costs would be rather extreme for KTM both monetarily and reputation wise. It would also make Moto3 a spec class with Honda the only manufacturer. Strange times. 

I doubt that KTM racing will disappear. There is talk that if they are forced to sell their racing division then it is likely to be picked up by Red Bull. If that is the case then the production arm and the racing division will likely continue without much disruption. I am only quoting hearsay so we will have to wait and see.  

Been idly wondering if it is possible that KTM is "ripping the band aid off fast" here, preparing them to move fwd. What if there is a larger contraction afoot? Might other manu's moto divisions also face upcoming corrections? Curious if Orange gets on the right track early, after which some others have a milder version of the same thing? Dunno, but wonder. 

One starts to wonder if perhaps the European manufacturers (KTM in particular) have been burning the candle at both ends in a manner that is not sustainable, and perhaps the Japanese may have the last laugh.

I think that's right Shrink, and it's a rational thing to do if a really massive restructure is needed. This may have come about after the first lot of advisors moved in and it explains how the news now seem worse than it already seemed. There are however complications in this scenario: 1. Even if the restructure is viable the market won't necessarily return as it was - cause who would buy a new long termer from a shaky manufacturer? 2. If the workforce gets screwed, for example by delayed wages or entitlements, then it can be very difficult to turn things around - and the first workers to depart voluntarily are those most attractive to other employers - and then you have an intolerable talent and skills loss. 3. And then some poor bugger has to figure out how to move that huge inventory with the overhanging (a bad pun I know) camshaft issue - noting that the commentary about that issue online has gone to a new angrier level in the last few weeks. 4. In terms of market dynamics more generally Honda are reported to have a 22% market share and KTM 1.8% (DEALLAB). - In terms of economy of scale that's a pretty difficult comparison. (This also explains Honda's increasingly aggressive pricing *8/9999 thousand UK pounds for a naked fireblade engine naked which is getting great reviews. That's just making the market harder for everyone else).  5. Finally what is the brand proposition now? The other premium high performance brand is Ducati and they are enjoying a real reliability reputation boost and a declining cost of ownership. And now Ducati are increasingly presenting off road options and whose market segment is that most likely to impact? Whenever I see a KTM on the road I tend to assume that the person on board is a very serious rider devoted to performance - they always get a wave from me - and for their sake and for the employees I hope this story turns around. Hope, however, is not translating to expectation.

Five stars and festive greeting dewang.

Nice highlight reel. Isn't motogp great.

KTM what? Keep Taking Money.

I Just absolutely need filters and parts for my Husqvarna. So hoping that a solution will be found.

€700,000,000 secured already! Are those backers throwing good money after bad?

I'm thrilled that there will still be KTM machinery on the grid! I wonder what will become of the personnel in place on the race team? Will they carry over or be replaced by Red Bull staff? So many employees and fans put in limbo by the shortsightedness of the c-suite.

Now that you mentioned that, I think that's what will happen. KTM is saying they will race in MotoGP, while omitting Moto2/Moto3.

Maybe MotoGP is being used as an umbrella term to encompass all three classes. Or it could be double-speak from KTM to shield themselves for legal (or other) reasons.

I hear you Dr Spray - changing the set up on the Supersport for an aging body. BUT, fun surprise was adding a lightweight bike w relaxed geometry (naked Ninja 400 "Z400") that rides like a cross between a sportbike and a Supermoto. If I could have just what I want it would be Tuono 450 (whatever that displacement is) or 660 to build the same way. Lots of crash protection - great for kart tracks or tight stuff. Surprisingly fun!!

Main bike now.

:)

Earlier in 2024, rumors of the F1 star's impending purchase of Gresini were proved unfounded. Now, mutliple outlets are reporting that a Hamilton investment in KTM's MotoGP program could be a win all around (for KTM, MotoGP/Liberty Media/Dorna, and of course Lewis Hamilton):

from GPOne "Beirer on Hamilton 'We talked today, you need to be creative in KTM'"

from AS "KTM acknowledges “very interesting conversations” with Hamilton

and from Ivo Schützbach at Speedweek "KTM exclusive: Revolutionary news before the start of the season": "During the Formula 1 World Championship final in Abu Dhabi at the beginning of December, Lewis Hamilton confirmed to SPEEDWEEK.com his interest in investing in MotoGP .

(and quoting Pit Beirer) "All I can say is that we have had very interesting discussions with his management," revealed Beirer. "It is no secret that Lewis Hamilton is interested in MotoGP and is thinking about having his own team. There are concrete discussions here too."

Lots still up in the air, including the EU decision on the Liberty acquisition and resolving potential conflict between KTM's deep relationship with Red Bull and Hamilton's with Monster Energy. 

As always, for Mutterers, speculation fuels conversation! 

 

The part that puzzles me is the difference between investing and having his own team. 

Beirer's words paint a picture. He talks about being creative. Liberty offered 4.2 billion, the five MotoGP manufacturers are a big part of that 'value' and therefore, in some way, KTM are worth approx 20% of that value. So given this huge value, investors have approached them. They need to change a lot of things, put the road racing division on its own feet so that it can be talked about as a seperate concern for investors...seperate from the ongoing disaster. Sponsors are partners and some are as much a part of the team as the team itself. In other words KTM and Redbull. Oh and Lewis Hamilton wants his own team and has had talks about investing.

To me, that sums up as splitting KTM road racing away from the KTM family and selling it. Does any manufacturer make any profit directly from racing in MotoGP ? Why would anybody invest in a team/manufacturer without a return ? Sponsors don't invest into a team, they invest money into their own image, in hope of a return. Impossible to see the future but what would an investor be buying ? Team name ? Access to the garage ? Cool selfies ? Control ? I can't see Lewis being happy with only having that warm feeling inside knowing his money helped. 

Maybe, after Liberty buy it, the whole landscape changes. Beirer is trying to sell a better future. 

I just read this article on soup, and then went to the source, an Austrian news site, DerStandard.

From my Apple built in translation, Dean quoted pretty accurately. There is a good bit of info in the news article, but the key statement regarding MotoGP, is below.

”From the 2026 season, KTM also wants to say goodbye to motorsport, specifically to the road riding series, MotoGP, Moto3 and Moto2.”


https://superbikeplanet.com/story/1348/ktm-s-2025-mea-culpa-tour-

https://www.derstandard.at/story/3000000250876/ktm-will-sich-2026-aus-motorsport-verabschieden?ref=article