P1racenews AI automatic summary:
KTM has been forced to pause the development of its MotoGP project amid the huge financial crisis facing the Austrian manufacturer.
According to the Austrian credit union AKV, KTM’s debts amount to approximately €3 billion euros, surpassing initial estimates. KTM recently underwent a significant restructuring, leading to the separation of several branches from the parent company and the placement of the racing division under KTM Racing GmbH. Despite efforts to secure the racing division, the company’s substantial debt has led to a halt in development over the MotoGP winter break. KTM has assured its teams and riders of its participation in the 2025 season, but concerns linger regarding the presence of all four KTM bikes on the grid in Buriram. To navigate the financial crisis, KTM plans to unveil a strategic plan that will likely isolate the sporting division within the company. KTM’s head of racing, Pit Beirer, remains optimistic about the company’s participation in the 2025 season, emphasizing the importance of motorsport as a global promotional platform for KTM. Despite facing challenges, rider Brad Binder believes that winning races is crucial in supporting the team and promoting KTM’s image.
