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KTM threatened with bankruptcy
- Thread starter jaybar6
- Start date
All this with highest revenue ever of 2.5 billion. 20% spent on R&D. those engineers are living the best times of their lives, which are about to end very abruptly.
Interestingly, they are still staying in Motogp, though they will pull out GasGas
Interestingly, they are still staying in Motogp, though they will pull out GasGas
There is a video at the end with stern faces PMG spokesperson
Neumeister not shaved -- shirt not ironed ---no tie -- mismatch trousers and jacket -- a jacket in
the wrong size
Haircut ??
Only get one chance leaving the first impression
OK Appearance is not everything but if I was a creditor .. I would seriously wonder if these are the right people doing a Turnaround Looking like morons
A Pit crew jacket would have been better
Neumeister not shaved -- shirt not ironed ---no tie -- mismatch trousers and jacket -- a jacket in
the wrong size
Haircut ??
Only get one chance leaving the first impression
OK Appearance is not everything but if I was a creditor .. I would seriously wonder if these are the right people doing a Turnaround Looking like morons
A Pit crew jacket would have been better
They have been doing great as a company. Very good growth, great bikes and technology. But the operational costs are way too high, which cratered their profitability when sales slowed. So there is no way around cutting opex. Here finance experts ahve to work close with their marketing and engineering to preserve the great technical core. Too often, companies gut R&D only to have customers turn away as the roadmap runs dry. Wishing them the best. Spending money or MotoGP seems like a frivolity, though. They should work with Dorna and other brands to help foot the bill to keep the series interesting.
And they have to look at their margins and product offerings. Expect fewer upgrades and some models disappearing from the lineup.
And they have to look at their margins and product offerings. Expect fewer upgrades and some models disappearing from the lineup.
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here is another good article on what happenend: https://www.motorcycle.com/bikes/news/ktm-ag-enters-self-administration-to-restructure-debt-44613250
jaybar6
XS650 Addict
I have read, they got huge sales during the lock down and geared up production with lots of jobs. The sales dropped post lock-down back to pre lock-down and now they have to shed 500 people with redundancy.
lockdowns and the excitement around their products drove the growth. Unfortunately, they are a great target for private equity now. I say 'unfortunately' because private equity often mean a slow decline as the PE firms can improve efficiency quickly (reductions), but are slow on investment and will load up the company with the debt they take out to purchase it.
jaybar6
XS650 Addict
I am no business man, but I thought if one has a boom it will be followed by a bust! So what one does is improve efficiency by getting rid of the slackers, reduce ones debts in the boom and then when the bust comes ones business is better to cope with the bust. KTM did the opposite and took on more workers to increase production and are now in the situation presently.
yes. they missed the forecast and overspent. The motogp effort alone is ~ 70M euro. I bet there will not be KTM in MotoGP next year.I am no business man, but I thought if one has a boom it will be followed by a bust! So what one does is improve efficiency by getting rid of the slackers, reduce ones debts in the boom and then when the bust comes ones business is better to cope with the bust. KTM did the opposite and took on more workers to increase production and are now in the situation presently.
Yes I have been working in bigger companies going bust
And to some extent Mr Mailman here on the forum ( i Believe it was ) Posted about Norton's about 10 Bankruptcies
Firing the old management .Sending in others .That sometimes are a more refined type of criminals
That is why i Dont like how Mr Neumeisters looks
And he keeps rapping about Championship wins ,The Financiers are not interested in that and possibly not the most buyers either
Huge moneys on loan Can be good products but there is the Business side of it also
My Guess is that there will be difficulties lending more .. Some can benefit of a Bankruptcy
Wiping the slate clean getting the debts written off
Then perhaps selling off the Things people want I am Thinking the Husqvarna brand and so
What I have heard their road going machines are not good enough Except Husqvarna that are to small
Stiff Competition So I Agree messing about in Moto GP has
questionable value for at brand good at off road machines ( As I hear )
My Guess is Bankruptcy within 6 months
Maybe Off road bikes in Austria I don't know if they are good enough to keep on The rest sold off
Possibly India
And to some extent Mr Mailman here on the forum ( i Believe it was ) Posted about Norton's about 10 Bankruptcies
Firing the old management .Sending in others .That sometimes are a more refined type of criminals
That is why i Dont like how Mr Neumeisters looks
And he keeps rapping about Championship wins ,The Financiers are not interested in that and possibly not the most buyers either
Huge moneys on loan Can be good products but there is the Business side of it also
My Guess is that there will be difficulties lending more .. Some can benefit of a Bankruptcy
Wiping the slate clean getting the debts written off
Then perhaps selling off the Things people want I am Thinking the Husqvarna brand and so
What I have heard their road going machines are not good enough Except Husqvarna that are to small
Stiff Competition So I Agree messing about in Moto GP has
questionable value for at brand good at off road machines ( As I hear )
My Guess is Bankruptcy within 6 months
Maybe Off road bikes in Austria I don't know if they are good enough to keep on The rest sold off
Possibly India
jaybar6
XS650 Addict
Valid points Jan. I think India is their solution, cheap labor. Move all their production to India. Motogp is their promotion. Poor Austrians, all out of work! Just watched a video, saying German car industry down 40%!
Some internet links here in Sweden
Machine translation
As I understand it, it is the 790 and 890 models that have the big problems, and that they are made in China. (KTM's first parallel twin engines)
The problem is "cheesy camshafts" or soft camshafts, if you will. A camshaft is supposed to last the entire life of the engine.
KTM's handling of this has been catastrophically poor. They have denied they exist, they have then put the blame on users, and then they have created conditions for refunds/repairs that are difficult for users to meet. The result is that the owners are furious and KTM's reputation has dropped dramatically.
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It is not true that it is made in China. The 790n was initially manufactured in Mattighofen, but production of that particular one was transferred to CF Moto's factory in China after the 890n was introduced. The 890n (which also has problems) is made exclusively in Austria.
The problem is not primarily the camshafts themselves, but that the oil system is inadequate and does not provide sufficient lubrication of the cams. Partly due to a wrongly designed top where the manufacturing tolerances were too poor to get a continuous channel of sufficient diameter and partly that the oil pressure from the pump was too low.
Machine translation
As I understand it, it is the 790 and 890 models that have the big problems, and that they are made in China. (KTM's first parallel twin engines)
The problem is "cheesy camshafts" or soft camshafts, if you will. A camshaft is supposed to last the entire life of the engine.
KTM's handling of this has been catastrophically poor. They have denied they exist, they have then put the blame on users, and then they have created conditions for refunds/repairs that are difficult for users to meet. The result is that the owners are furious and KTM's reputation has dropped dramatically.
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
It is not true that it is made in China. The 790n was initially manufactured in Mattighofen, but production of that particular one was transferred to CF Moto's factory in China after the 890n was introduced. The 890n (which also has problems) is made exclusively in Austria.
The problem is not primarily the camshafts themselves, but that the oil system is inadequate and does not provide sufficient lubrication of the cams. Partly due to a wrongly designed top where the manufacturing tolerances were too poor to get a continuous channel of sufficient diameter and partly that the oil pressure from the pump was too low.
Yes, this has been an issue but is rather small: https://www.motorcycle.com/bikes/features/whats-the-deal-with-ktm-camshafts-44610016
will not tank a 2.5B$ company.
It is a fragile thing reputation .. The press is sometimes not objective here in Europe
I remember a UK Magazine vaguely hinting that a new Honda Model was not perfect
They were no longer invited to new releases . For a while ...And the Magazine buyers bought the competitors magazine instead.
So I do believe a lot of sales are based on what friends and so says.
Myself are skeptical about lesser known brands in comparison to the well known bigger brands that have been around for 100 years Japanese and BMW best reputation But Moto Guzzi and HD have also been doing it for many years.
These bikes quality is good or better And they have a dealer network that knows their job.
Yamaha here in town is stellar -- Top Notch has been so for + 30 years . the few times I go there and the word gets around. Conidfence and honesty
Go there and talk to Mr X no one else and he fix it.
Which is not always the case for brands not selling much.
When the word is out about blue camshafts + perhaps -- A Service Provider not able to handle it professionally Charging a lot of money That word gets out
And now there are Youtube links accusing the manager for lying
Lying is I suppose a part of Bussiness .But Not in Motorcycling
Motorcycling here is a leisure activity that brings positivity and joy. If there is a mess, you can do something else
I remember a UK Magazine vaguely hinting that a new Honda Model was not perfect
They were no longer invited to new releases . For a while ...And the Magazine buyers bought the competitors magazine instead.
So I do believe a lot of sales are based on what friends and so says.
Myself are skeptical about lesser known brands in comparison to the well known bigger brands that have been around for 100 years Japanese and BMW best reputation But Moto Guzzi and HD have also been doing it for many years.
These bikes quality is good or better And they have a dealer network that knows their job.
Yamaha here in town is stellar -- Top Notch has been so for + 30 years . the few times I go there and the word gets around. Conidfence and honesty
Go there and talk to Mr X no one else and he fix it.
Which is not always the case for brands not selling much.
When the word is out about blue camshafts + perhaps -- A Service Provider not able to handle it professionally Charging a lot of money That word gets out
And now there are Youtube links accusing the manager for lying
Lying is I suppose a part of Bussiness .But Not in Motorcycling
Motorcycling here is a leisure activity that brings positivity and joy. If there is a mess, you can do something else
