• 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

Hakim Danish Begins Moto3 Campaign in Thailand

Michelle L.February 24, 2026
Read More

Malaysia Trio Ready for Moto4 Thailand Opener

Michelle L.February 24, 2026
Read More

Motorcycle Engine Stalls Mid-Ride: Tips to Avoid Panic and Stay Safe

Amzar HazeeqFebruary 24, 2026
Read More

Neglected Motorcycle Service Intervals: The Hidden Risk of Breakdowns

Amzar HazeeqFebruary 24, 2026
Read More

Fabio Quartararo: Yamaha V4 “Needs a Few More Months” as 2026 Set to Be Year of Development

Hazique ZairillFebruary 24, 2026
Read More

Welcome Back MotoGP: The 2026 Season Is Ready to Ignite the Track

Amzar HazeeqFebruary 24, 2026
Read More

From Likes to Risk: How Social Media Is Changing Riding Behaviour

Amzar HazeeqFebruary 24, 2026
Read More

Overconfidence in Motorcycle Riding: The Hidden Risk Many Motorcyclists Ignore

Amzar HazeeqFebruary 24, 2026
Read More

Boon Siew Honda Launches ‘Gongxi Raya’ Campaign with Festive Deals

Hazique ZairillFebruary 24, 2026
Read More

Bulega Makes WorldSBK History with Second Straight Phillip Island Hat-Trick

Hazique ZairillFebruary 23, 2026
Read More

MotoGP Announces Major Race Direction Changes Ahead of 2026 Season

Hazique ZairillFebruary 23, 2026
Read More

Lost That Punch? Why Motorcycles Feel Slower Over Time

Amzar HazeeqFebruary 23, 2026
Read More
We want to buy your bike Join us on Instagram
Scroll for more
Tap

Join us on Facebook

  • Popular

  • Latest

  • Comments

  • Toprak Razgatlıoğlu Still Adapting to MotoGP’s Michelin Tyre
    LifestyleFebruary 11, 2026
  • MotoGP 2026 Kuala Lumpur Launch: What You Should Know
    EventsFebruary 6, 2026
  • Fabio Quartararo to Join Honda Factory Team Next Season
    IndustryJanuary 29, 2026
  • Kawasaki Ninja ZX-25R vs QJMotor SRK250RD: Battle of the 250cc Inline-Four Sportbikes
    Buyer's guideJanuary 27, 2026
  • 2025 Yamaha MT-09 vs 2025 Kawasaki Z900 SE: Two 900cc Naked Bikes With Different Souls
    Buyer's guideJanuary 29, 2026
  • Royal Enfield Meteor 350 vs Honda CB350RS: Battle of Two 350cc Retro Roadsters
    Buyer's guideJanuary 26, 2026
  • How to Lean a Motorcycle Correctly: A Rider’s Guide to Cornering Safely
    IndustryJanuary 30, 2026
  • Hakim Danish Begins Moto3 Campaign in Thailand
    MotorsportFebruary 24, 2026
  • Malaysia Trio Ready for Moto4 Thailand Opener
    MotorsportFebruary 24, 2026
  • Motorcycle Engine Stalls Mid-Ride: Tips to Avoid Panic and Stay Safe
    IndustryFebruary 24, 2026
  • Neglected Motorcycle Service Intervals: The Hidden Risk of Breakdowns
    IndustryFebruary 24, 2026
  • Fabio Quartararo: Yamaha V4 “Needs a Few More Months” as 2026 Set to Be Year of Development
    LifestyleFebruary 24, 2026
  • Welcome Back MotoGP: The 2026 Season Is Ready to Ignite the Track
    IndustryFebruary 24, 2026
  • From Likes to Risk: How Social Media Is Changing Riding Behaviour
    IndustryFebruary 24, 2026
  • 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