BMW Motorrad is reportedly considering the acquisition of Austrian motorcycle manufacturer KTM, which is grappling with over €2 billion in debt. This development follows KTM’s insolvency filing in November 2024 due to financial strain from post-pandemic sales declines and inventory issues. The company has since entered restructuring proceedings, with creditors approving a plan that involves a 70% debt write-off and a €575 million funding requirement to resume production by May 2025.
BMW’s potential takeover could significantly impact KTM’s operations. Reports suggest that BMW plans to relocate KTM’s research and development activities to Munich, Germany, and shift production to India, where Bajaj Auto, KTM’s existing partner, manufactures its motorcycles . Such a move could lead to the loss of approximately 4,500 jobs in Austria by the end of 2025, potentially costing the Austrian government up to €225 million in severance payments.
The acquisition rumors have stirred controversy, with concerns about the preservation of KTM’s Austrian heritage and the welfare of its employees. As the restructuring process unfolds, the future of KTM remains uncertain, with the possibility of bankruptcy if the approved plan is not fully executed.
