The steps KTM is taking to protect its MotoGP division while it awaits a saviour

Pedro Acosta was at home when he found out about the technical knockout in which KTM has found itself, right after the great revelation of the 2024 MotoGP championship had finished sixth in his rookie season with the most podiums of the Austrian manufacturer’s rider line-up.

The gravity of the situation, especially after the declaration of insolvency by KTM’s parent company Pierer Mobility which followed the initiation of the bankruptcy process managed by Citibank, prompted a second visit by Acosta to the racing division headquarters in Mattighofen to get a more detailed look at the events. The meeting with Pit Beirer, the brand’s racing director, helped reduce the tension and, for Acosta – who travelled accompanied by his manager Albert Valera – to leave hearing about the commitment to remain in MotoGP, the spearhead of its racing activities.

The report published by the Alpine Creditors Association (AKV) after the first meeting of the insolvency process referred to the exit from MotoGP, Moto2, and Moto3 as one of the measures that should be taken to contain costs. According to information published by DerStandard, referencing a report that KTM itself requested from the Boston Consulting Group, this move was later set for 2026.

“KTM maintains its firm commitment to motorsport. We repeat our statement for 2025: We will continue to compete in MotoGP,” the manufacturer responded, without mentioning what will happen in two years. KTM continues to operate with the intention of maintaining its presence in various competitions, which is crucial to its identity; it’s important to remember that the brand’s slogan is ‘ready to race’.

Obviously, the weakest link in the entire structure is the hundreds of workers who have lost their jobs, those who have not yet been paid what they are owed, as well as the suppliers who are owed money. The mood of the executives currently leading KTM varies from day to day. The most visible face is that of Stefan Pierer, the company’s CEO, who most point to as being directly responsible for the overstocking of motorcycles that have caused KTM’s fixed assets to skyrocket, with accumulated debt of around €3billion.

“What has happened is very surprising. I remember being at a dinner with Pierer at the end of 2022, where he was already warning us about the sales crisis that was predicted for 2024. He told us to be prepared. What is not understood is that he, as a great businessman and boss of all of us, did not take measures and production continued at maximum capacity,” explains an internal KTM source to Autosport, referring to the more than 250,000 motorcycles estimated to be stored and unsold.

In recent weeks, Pierer has taken a step back in managing the sports area, leaving decision-making to Heinz Kinigadner, a person he fully trusts and who is also a partner in the brand. The value of Pierer Mobility shares hit rock bottom on 28 November, falling below €8. The announcement of the insolvency proceedings a month later had a revitalising effect on potential investors who were waiting for opportunities like the one KTM offered.

There were some, like Lewis Hamilton, willing to take the reins of the MotoGP team. However, Autosport understands that the offer from Ferrari’s new signing for the upcoming Formula 1 season will not materialise, as the goal is for whoever takes control to inject capital to save the entire company, not just its racing division.

In addition to Bajaj, which already owns 40% of KTM shares, CF Moto (China), which is already a partner of the group but currently doesn’t own any shares, should also be considered in this scenario. Another potential candidate could be Mercedes, which since 2023 has had Pierer himself in its highest-level meetings.

KTM’s leadership is absolutely convinced they can keep their racing arm afloat, as it is an independent company. But the riders who have remained under their umbrella aren’t certain that this will be fulfilled

In August, the Austrian entrepreneur signed the sale of 50.1% of Leoni, a German multinational dedicated to manufacturing automotive wiring, to the Chinese Luxshare group, an operation that secured him a seat on the board of directors at Mercedes. On a smaller scale, others, like Maverick Vinales, also acquired a package of shares that, in one month, has already yielded a 200% profit on the invested capital.

Autosport understands that KTM’s leadership is absolutely convinced they can keep their racing arm afloat, as it is an independent company. The issue is that the riders who have remained under their umbrella are not absolutely certain that this will be fulfilled, and they have been making moves for days. The one doing it the most, as he has the best reputation, is Acosta, who has a line of suitors waiting should the orange bike manufacturer collapse.

“All the factories have contacted me asking how Pedro is doing, and wishing that this whole situation doesn’t affect him,” Valera said in ‘Por Orejas’, the podcast of Autosport’s Spanish sister site. “I’m sure that all of them will help us when we need to consider an alternative. We’re talking about a 20-year-old diamond, and any brand would be excited to have his services.

“I can’t allow Pedro’s market value to fall. My job is to secure a winning project as soon as possible. If I see that everything that’s happening could affect Pedro’s prospects, I’ll start moving to ensure he has the tools he needs to be able to compete for the MotoGP title.”

Will Acosta’s future continue to be tied to KTM amid its financial crisis?

Photo by: Gold and Goose / Motorsport Images