• Bikes for Sale
  • News
  • Buyer’s guide
    • Buy a Motorcycle
    • First Rides & Reviews
    • Specs, Prices & Others
  • Lifestyle
    • Concepts & Custom
    • Electric Motorcycles
    • Events
    • Motorsport
    • Tips & Stories
    • Travel
  • Locals
imotorbike logo
  • Bikes for Sale
  • News
  • Buyer’s guide
    • Buy a Motorcycle
    • First Rides & Reviews
    • Specs, Prices & Others
  • Lifestyle
    • Concepts & Custom
    • Electric Motorcycles
    • Events
    • Motorsport
    • Tips & Stories
    • Travel
  • Locals
  • Facebook

  • Instagram

  • X (Twitter)

  • YouTube

  • LinkedIn

  • RSS

News

KTM Battles Financial Collapse Amid Prolonged Shutdown

KTM Battles Financial Collapse Amid Prolonged Shutdown
Michelle L.
April 28, 2025

KTM faces a deeper crisis as financial troubles, supply shortages, and factory shutdowns threaten the brand’s survival.

KTM faces a deeper crisis as financial troubles, supply shortages, and factory shutdowns threaten the brand’s survival.

Subscribe to our Telegram channel for instant updates!

KTM has long been a brand built on speed, adrenaline, and pushing boundaries. But today, it’s grappling with a race it can’t seem to win — the race to survive.

The Austrian manufacturer, once celebrated for its aggressive expansion and racing dominance, now faces a grim financial reality. After nearly brushing with insolvency not long ago, KTM restructured its debts, negotiating a critical repayment of €600 million by next month. That deadline is now looming — and KTM admits it can’t meet it.

If that were the only issue, it would already paint a worrying picture. But things have spiralled even further: KTM has just announced it is once again halting production at its Mattighofen factory — this time until at least the end of July. When you step back, the picture becomes clearer: KTM’s factory will have essentially sat idle for an entire year.

Why This Shutdown Is Different

Previous production pauses might have been blamed on external forces — the pandemic, chip shortages, and global supply chain hiccups. But this time, KTM’s problems are largely self-inflicted. When production initially stopped last year, part orders dried up. And when KTM tried to hit the restart button, their suppliers didn’t exactly roll out the welcome mat.

It’s not hard to see why. With ongoing insolvency proceedings and a shaky financial outlook, suppliers have little faith KTM can pay its bills. As a result, critical parts simply aren’t arriving, meaning even if the factory doors are open, the bikes aren’t getting built.

In short, KTM isn’t just struggling with production. It’s struggling with trust.

KTM faces a deeper crisis as financial troubles, supply shortages, and factory shutdowns threaten the brand’s survival.

A Factory Without Bikes and a Workforce in Limbo

CEO Gottfried Neumeister recently delivered the tough news to KTM employees via video message: production can’t continue because of parts shortages. Stocks were only sufficient to build around 4,200 bikes — an alarmingly low number for a brand of KTM’s size — and now even those are exhausted.

To avoid mass layoffs, KTM has taken drastic steps: starting in May, around 3,000 employees in Austria will shift to a 30-hour workweek, with corresponding wage adjustments. It’s a stopgap to buy time — but not a solution.

Because the cold reality remains: without parts, without cash flow, and without the ability to pay back creditors, KTM’s problems are only compounding.

What Happens Next for KTM?

The brand hopes to resume production in late July — but that’s a big “if.” Securing enough capital to satisfy creditors and rebuilding supplier relationships will be a monumental task. Every day KTM remains stalled, supplier trust erodes further, dealerships fill with unsold inventory, and brand confidence weakens.

And in the brutally competitive motorcycle industry, where agility and reliability are king, this kind of uncertainty is a death sentence if it drags on too long.

A Bigger Lesson for the Industry

KTM’s struggles are more than just one brand’s crisis — they’re a cautionary tale. In a high-risk, high-reward industry, aggressive expansion without financial prudence can backfire spectacularly. KTM’s spirit of relentless growth made it a fan favourite, but now that same relentless push has left it dangerously overextended.

For now, KTM still has loyal fans, a proud racing heritage, and some glimmers of hope. But survival will require more than just tough talk and bold promises. It will demand something KTM isn’t used to relying on: patience, humility, and hard financial realism.

The question isn’t just whether KTM can make motorcycles again. It’s whether KTM can rebuild the trust it once took for granted.

Related Itemscrisisfeaturedktmnewnewsshutdowns
To read the full story
login with google
login with facebook
or
Create an account for free
This won't cost you.
by clicking this button you agree to iMotorbike's visitor agreement
Already have an account? Sign in here
Click here to get notified on every new article
News
April 28, 2025
Michelle L.

An avid fan of motorsports bringing you top-notch content from the two-wheeler world! Gear up for the latest updates and news with top speed delivery

Related Itemscrisisfeaturedktmnewnewsshutdowns

More in News

2025 Kawasaki KLX230 SM Review: Small CC, Big Smiles

Hazique ZairillDecember 15, 2025
Read More

Ride Safely in Heavy Traffic: Motorcycle Techniques

Amzar HazeeqDecember 15, 2025
Read More

CFMoto Sets Sights on WorldSBK With the Powerful V4 SR-RR

Amzar HazeeqDecember 12, 2025
Read More

Modenas Reveals New CKD Price for Kymco AK550 Premium, Now RM55,888

Hazique ZairillDecember 12, 2025
Read More

Mastering Trail Braking: The Cornering Technique Every Rider Should Know

Amzar HazeeqDecember 12, 2025
Read More

Why Your Motorcycle Loses Power: Troubleshooting Guide

Amzar HazeeqDecember 12, 2025
Read More

Boon Siew Honda Partners with EMS Motorsports for Enhanced Accessory Options with the ADV160 + EMS Lebih Bergaya Campaign

Amzar HazeeqDecember 12, 2025
Read More

Valentino Rossi Exits BMW WEC Line-Up for 2026

Hazique ZairillDecember 12, 2025
Read More

Modenas Launches 2026 Kawasaki Ninja 1100SX in Malaysia

Hazique ZairillDecember 12, 2025
Read More

KTM’s Upcoming RC450 Exposed in China

Hazique ZairillDecember 12, 2025
Read More

Ellaspede’s Ferrari-Inspired Honda CBX750: A Bold Reimagining of an 80s Icon

Amzar HazeeqDecember 12, 2025
Read More

iMotorbike’s 13th CSR Effort Reaches House of Love Children’s Home in Klang

Hazique ZairillDecember 12, 2025
Read More
We want to buy your bike Join us on Instagram
Scroll for more
Tap

Join us on Facebook

  • Popular

  • Latest

  • Comments

  • Bajaj Auto Takes Full Control of KTM
    IndustryNovember 24, 2025
  • 2025 SYM ADXTG 400 Review: Adventure Meets Scooter Practicality
    Buyer's guideNovember 20, 2025
  • MotoGP to Bring Back KL Street Circuit Experience for 2026 Season Launch
    LifestyleNovember 27, 2025
  • Morbidelli Launches Affordable T250X Adventure Bike For The Malaysian Market
    Buyer's guideNovember 27, 2025
  • BMW Dominates Macau Grand Prix with 1-2-3 Finish
    MotorsportNovember 17, 2025
  • Is It Time for an Oil Change? A Guide for Every Motorcycle Rider
    Buyer's guideNovember 24, 2025
  • BBM Unveils Hiro Platform and Electric Streetfighter
    NewsNovember 21, 2025
  • 2025 Kawasaki KLX230 SM Review: Small CC, Big Smiles
    Buyer's guideDecember 15, 2025
  • Ride Safely in Heavy Traffic: Motorcycle Techniques
    IndustryDecember 15, 2025
  • CFMoto Sets Sights on WorldSBK With the Powerful V4 SR-RR
    IndustryDecember 12, 2025
  • Modenas Reveals New CKD Price for Kymco AK550 Premium, Now RM55,888
    Buyer's guideDecember 12, 2025
  • Mastering Trail Braking: The Cornering Technique Every Rider Should Know
    IndustryDecember 12, 2025
  • Why Your Motorcycle Loses Power: Troubleshooting Guide
    IndustryDecember 12, 2025
  • Boon Siew Honda Partners with EMS Motorsports for Enhanced Accessory Options with the ADV160 + EMS Lebih Bergaya Campaign
    IndustryDecember 12, 2025
  • MV Agusta Lucky Explorer Project 9.5: testing the Schiranna prototype - news.iNthacity: More Top Breaking News and Popular Stories To Stay Informed says:

    […] Michelle Liew […]

  • CFMOTO 450SR to enter Malaysia in March 2023 at RM29,300 - news.iNthacity: More Top Breaking News and Popular Stories To Stay Informed says:

    […] Michelle Liew […]

  • Suzuki V-Strom now available in Malaysia at RM81,900 - news.iNthacity: More Top Breaking News and Popular Stories To Stay Informed says:

    […] Michelle Liew […]

  • Colin says:

    I hope they make the Dax street legal. Love to…

  • Mohd Razi bin Rosli says:

    Adv 150cc

  • Nena Maxberry says:

    Just curious what they would retail for

  • Adam Kenny says:

    RM4159 for the front fork is it?

Corporate

About Us
Terms of Use
Privacy Policy
Disclosure Policy
Contact Us
SUBSCRIBE NOW!

2024 iMotorbike World Sdn. Bhd.(1205246-M). All rights reserved.

Penang Steps Up Road Safety Efforts to Curb Motorcycle Fatalities
New Cruiser Benda LFC700 Pro Roars into Malaysia 
Nak Jual Beli Motor 😊 ?
WhatsApp
Hi iMotorbike 😊
Open chat