--- title: "KTM Is On the Verge of Bankruptcy" description: "Pierer Mobility AG, the owner of several motorcycle and scooter/e-bike brands, announced last week that its subsidiary KTM is undergoing a self-administered restructuring to shed debt without involving bankruptcy courts. Pierer has failed to attract bridge financing for the motorcycle…" date: "2024-12-02" modified: "2024-12-02" authors: - name: "Byron Hurd" job_title: "Editor" link: "https://www.thedrive.com/authors/byron-hurd" url: "https://www.thedrive.com/news/ktm-is-on-the-verge-of-bankruptcy" categories: - "News" tags: - "bikes" - "Electric Bikes" - "KTM" --- # KTM Is On the Verge of Bankruptcy ![KTM motorcycle and X-Bow car on a forested road.]() *\KTM\* Pierer Mobility AG, the owner of several motorcycle and scooter/e-bike brands, announced last week that its subsidiary KTM is undergoing a self-administered restructuring to shed debt without involving bankruptcy courts. Pierer has failed to attract bridge financing for the motorcycle and [X-Bow]() maker since its last call for cash. This 90-day restructuring period is [roughly equivalent]() to a Chapter 11 proceeding in U.S. bankruptcy court, albeit more hands-off. The self-administration period allows the company to negotiate new financing terms with creditors before it could be compelled to hand over control of its assets to court-appointed bankruptcy stewards. KTM co-CEOs Gottfried Neumeister and Stefan Pierer had another term for it: "Pitstop for the future." Sure. https://www.youtube.com/watch?v=1P8uT\_7JGNM&t=6s In what has also become a more common (and concerning) narrative across the automotive industry, KTM reported a precipitous drop in sales in the first half of 2024. The company's debts had mounted to more than $1.5 billion as of June, per *[Motorcycle.com]()*, while it pulled in 27% percent less revenue over the first six months of the year compared to 2023. KTM also owns Husqvarna and holds a majority stake in MV Agusta. Neumeister and Pierer also hinted at KTM's reliability concerns. *[ADV Pulse]()* suggests those comments refer to [ongoing quality control issues]() surrounding the company's 790 and 890 models (along with the Husqvarna Norden 901). Customer reports of premature camshaft wear in bikes equipped with the LC8c parallel twin engine prompted an [official response from KTM in September](). KTM also blamed Covid (and the company's response to it) for some of its woes. The whiplash of initial production struggles followed by a rapid increase in output led to an oversupply of inventory after pandemic-era demand softened. *Got tips? Send ’em to tips@thedrive.com* ## Author Byron is an editor at The Drive with a keen eye for infrastructure, sales and regulatory stories. He brings a light, punchy style to all of his content, believing that there's plenty out there to be laughed at—himself included. Born and raised in Maryland but now based just a stone's throw from Detroit, Byron is an auto enthusiast and generalist who enjoys building and tinkering with things of all kinds, from cars, computers and digital cityscapes, to the new garage that will soon house his fleet (a CT4-V Blackwing, a JK Wrangler and an NA Miata). Inspired by an early love of rollercoasters, Byron quickly caught the high-performance driving itch. He's been tracking and auto-crossing his cars since 2007. In his downtime, Byron enjoys reading, playing city builders, and studying the history of the Motor City. ### Author social links [Bluesky]() [Instagram]() [LinkedIn]()