P1racenews AI automatic summary:
KTM’s increasingly difficult financial situation is surely going to have an impact on its motorsport programmes, reckons Simon Patterson
One of MotoGP’s major manufacturers, Pierer Mobility AG, is facing financial difficulties with its KTM, GasGas, and Husqvarna brands, causing a significant drop in their stock prices, which will likely impact the group’s motorsport ventures. The company’s financial troubles have been ongoing, with dwindling sales and high debt from acquisitions leading to failing to meet 2024 projections, resulting in a sharp decrease in stock value over two years. Pierer Mobility AG is restructuring its motorsport activities due to the sales decline, including merging GasGas, CFMoto, and Husqvarna brands back into KTM and potentially cutting entries to the World Supersport championship in 2025. Despite the financial crisis, KTM is still investing heavily in two-wheeled racing, but future investments may be in jeopardy if the situation worsens. Long-time sponsorship partner, Red Bull’s reduced support following the death of CEO Dietrich Mateschitz in 2022, adds to the group’s financial concerns. As KTM gears up for the 2025 MotoGP season with rising talent Pedro Acosta and new recruits, the financial challenges could overshadow their aspirations for a breakthrough year.
