KTM in deep financial trouble..would you buy one?

Mailman

Mailman

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You’ve probably read by now that KTM is deeply under water, they’ve filed for bankruptcy and they have a years worth of unsold inventory just sitting in wharehouses. They have ceased production and all indications are that they will go out of business. Here in Phoenix ( and it looks like elsewhere ) their bikes are being sold at deep discounts. Thousands of dollars off new models. So my question is…..
would you buy a new KTM or really any dying brand, such as Victory, knowing that dealer support and parts availability is likely to dry up?

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There some good deals, and probably better ones to come, companies like Bajaj and CF Moto are hugely invested in KTM production (390/790/890). I first have to come clean and say I own 5 KTM’s but I think someone big like BMW will step in, I’m not saying that they will for sure save the Austrian facility but they have always wanted a piece of the dirt bike market, the Paris Dakar and MotoGP. Bajaj is one of the largest manufacturers in the world now and I can’t see them losing the super popular 390 line and, CF Moto is very aggressive at the moment.
As far as parts availability drying up that could be an issue to the point that parting them out will become big business
 
It looks possible that it could be sold to one of the huge Indian or Chinese conglomerates, which ( according to Fortnine ) would probably result in a dumbing down ( my words ) of the company and the production of less exciting but more affordable bikes.

 
Mailman said:
It looks possible that it could be sold to one of the huge Indian or Chinese conglomerates, which ( according to Fortnine ) would probably result in a dumbing down ( my words ) of the company and the production of less exciting but more affordable bikes.

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Those 2 companies already produce a lot of KTM bikes, so it’s kind of a no brainer, there is nothing unexciting about the 390 lineup especially the 390r adventure!
 
Mailman said:
It looks possible that it could be sold to one of the huge Indian or Chinese conglomerates, which ( according to Fortnine ) would probably result in a dumbing down ( my words ) of the company and the production of less exciting but more affordable bikes.
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I can see your worry - all Chinese manufacture is cheap rubbish. Or so we used to think. But we sometimes forget just how complicated the whole Far East including China is. Vehicle manufacture is complicated everywhere, parts and subassemblies travel all around the planet and move in and out of multiple countries and trading blocs before they go on sale.

Back in the day, people called the bikes I bought 'Jap Crap!' but these days most people rate Japanese quality. And these days KTM, Triumph, Royal Enfield and many other familiar bike brands are all made in Asia - Thailand, India, etc. There's hundreds of Chinese m/c makers - a lot produce cheap, utilitarian 125s built down to a price and you get what you paid for.

But as the workshop of the World - and the biggest economy - the Chinese are also investing heavily in high quality sectors. A lot of European luxury cars are coming out of factories in China now. So it doesn't have to follow that Chinese ownership means they'll be dumbed down. But as said can see your worry.
 
Raymond said:
I can see your worry - all Chinese manufacture is cheap rubbish. Or so we used to think. But we sometimes forget just how complicated the whole Far East including China is. Vehicle manufacture is complicated everywhere, parts and subassemblies travel all around the planet and move in and out of multiple countries and trading blocs before they go on sale.

Back in the day, people called the bikes I bought 'Jap Crap!' but these days most people rate Japanese quality. And these days KTM, Triumph, Royal Enfield and many other familiar bike brands are all made in Asia - Thailand, India, etc. There's hundreds of Chinese m/c makers - a lot produce cheap, utilitarian 125s built down to a price and you get what you paid for.

But as the workshop of the World - and the biggest economy - the Chinese are also investing heavily in high quality sectors. A lot of European luxury cars are coming out of factories in China now. So it doesn't have to follow that Chinese ownership means they'll be dumbed down. But as said can see your worry.
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Your brand new IPhone is made in China but I’ll bet there was no hesitancy whatsoever when you purchased it, let’s also not forget that CFMOTO finished 2 Dakars in a row on production bikes! not the factory specials that KTM ran.
 
Used to be that many defunct manufacturers would keep parts in stock for 7 years, but that’s if the parent company was still in business. If you bought a new one and were fortunate that it ran well without issue for many years, resale value will be negatively impacted. No dealer / manufacturer = no warranty? Sorry if this was discussed above - just wanted to post a quickie.
 
I stick to the brands that has been doing it for hundred Years
BMW / HD / Moto Guzzi / and the Japanese Brands there is accumulated knowledge and expertise and for the Japanese quality attention
that was even better beginning 80 ies
There will always come other brands and can look good on the sales pitch But there is a learning curve And manufacturing knowledge Supply chains.
Even if the " Older " brands get it wrong sometimes .. They don't get involved in trixter creative explanations and so.

I don't believe the creditors are in equal standing so given that huge debt .Perhaps some prioritized creditor demands closing down and then being first in line demanding their money leaving others not getting anything .. Taxman perhaps

BMW sounds unlikely ..but there are people doing the math on fex Husqvarna Brand
 
Mailman said:
You’ve probably read by now that KTM is deeply under water, they’ve filed for bankruptcy and they have a years worth of unsold inventory just sitting in wharehouses. They have ceased production and all indications are that they will go out of business. Here in Phoenix ( and it looks like elsewhere ) their bikes are being sold at deep discounts. Thousands of dollars off new models. So my question is…..
would you buy a new KTM or really any dying brand, such as Victory, knowing that dealer support and parts availability is likely to dry up?

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Personally I would buy any KTM built before 2022. Plenty sold and plenty of spares.
Newer ones at the right bargain price I would take a punt at as most models were very reliable. Avoid the 760/790 engine models with the chocolate cam shafts (actually built by CF Moto in China); but even these are worth a look as CF Moto have just launched a few new models using an update version of this engine, using almost identical KTM frames. Obviously no Warranty on the KTM’s but there would be parts interchangeable between the two brands. If it’s cheap enough with the KTM and you are willing to take a risk why not. It’s like buying a brand new Toyota Supra which is just a reskinned BMW 3.0ltr Z car.
 
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KTM has offered an extended warranty as consumer incentive on new purchases at no cost. IF you're serviced at authorized dealers. Dealers are providing the discounts off their margins. KTM dealers are paying floorplan interest, so they're motivated. Probably not too happy with KTM Corp, right now. Buy more leftovers?
Seems to me KTM is still in denial.

A large cash infusion to fund discounts on warehouse inventory, free flooring for gun shy dealers. They're not there yet.

Now let's talk resale value....
 
dave_a said:
KTM has offered an extended warranty as consumer incentive on new purchases at no cost. IF you're serviced at authorized dealers. Dealers are providing the discounts off their margins. KTM dealers are paying floorplan interest, so they're motivated. Probably not too happy with KTM Corp, right now. Buy more leftovers?
Seems to me KTM is still in denial.

A large cash infusion to fund discounts on warehouse inventory, free flooring for gun shy dealers. They're not there yet.

Now let's talk resale value....
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Those promises is from a company that can file for bankruptcy next week Then those promises into the future are not worth anything
Should your bike sit in the shop at the time it can take time to get it out if ever
It can disappear.

I Dont know these bikes but modern cars needs service software that only a brand dealer have

The " older " more established brands there are not these risks so often

But OK everything has a price and is sold it is a " Deal " as Politicians says these days
 
I feel like every decade or so KTM takes a shit and then is saved. Had one and it was a great bike. Definitely performance oriented, but again the electrics were always in question and spending only a few minutes online with people trying to do warranty claims they will bend over backwards to screw you over, and all that from a company always on the verge of tits up? Hard pass
 
Yeah, too bad they're not called "Pentons".
Maybe someone on this side of the pond would take a shot on picking up the pieces.
Never ridden a "ready to race" modern version. Spec wise they're the bike I always wanted, other than seat height. I've got a buddy with an 1190 for sale.
No one wants to buy it.
 
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