Business As Usual

Thinking of buying a new KTM? Never fear, there's nothing that we at MRU are worried about for the sake of brand support, their future and how we operate every day.

Amidst the online chatter and misinformation, we hope this article sheds light on the current KTM restructure. It's easy to get overwhelmed, but rest assured that Motorcycles R Us is here in business, with full support of KTM Australia to stock, sell, service and warrant KTM motorcycles, spares, accessories, apparel, lifestyle, warranty work and services.

As a family-owned business for over 40 years, directed by Tony Armstrong since 1981, we're deeply invested in our team, brands, community, and our long-term and new customers. Our General Manager, Anthony Armstrong, along with all our staff, are passionate about providing exceptional service and ensuring a bright future for our business with KTM as our primary brand.

We want to assure you that we're closely working with KTM, and in the meantime, it really is business as usual for us, keen to help you with anything KTM.

the shorter version...

KTM Australia: summary of Important Updates (December 2024)

This blog post/webpage provides important information regarding recent news about KTM.

Key Points:

• Be critical of online information. Trust KTM's Press Centre and established publications for accurate updates.
• KTM Australia is operating normally. No delays or layoffs reported.
• Pierer Mobility is committed to KTM's long-term success. Restructuring aims to streamline operations and secure investment.
• Temporary motorcycle production pause to focus on selling existing stock. Plan your purchase sooner than later for better stock availability chances.
• Limited-time rebates on runout models expire at the end of 2024. 
• Don't believe online rumors about engine reliability or racing future. KTM offers a 10-year warranty on the parallel twin engine and remains committed to racing.
• Companies use debt as part of normal business practices. KTM expects to return to profitability by the end of 2025.

Additional Information:
KTM Restructure Press Release: KTM Press Centre
Established publications: mcnews.com.au, visordown.com

the longer version...

Original KTM News Gets Lost in Translation

KTM has been commendably transparent about recent events at their headquarters. However, the information journey can get murky. Reputable news outlets adapt press releases for their audience, creating different tones (think Daily Mail vs. Financial Review).

The real problem lies on social media. Platforms like Facebook, Instagram, and Reddit often distort the message. Unverified information gets repeated and sensationalised, turning a minor blip into a major crisis. Trolls and attention seekers fuel the fire in comment sections, blowing things way out of proportion.

We see this all the time at our dealership. Customers come in with concerns based on social media rumors, not verified facts.

Here's the key takeaway: be critical of online information. Stick to trusted sources like KTM's Press Centre and established publications like mcnews.com.au and visordown.com for example. These outlets provide accurate information, not social media drama.

KTM Australia: Business as Usual

Despite being part of the Austrian parent company, KTM Australia hasn't experienced layoffs or delayed payments. The company remains focused on finishing the year strong. This includes timely payments for dealer rebates on sold runout models, efficient warranty claim processing, and swift dispatch of daily parts orders.

Now is the perfect time to take advantage of significant discounts on runout KTM models, PowerParts, and PowerWear. These seasonal reductions are common practice as new models are introduced to the market.

KTM's Commitment to the Future

It's clear that Pierer Mobility, KTM's parent company, is committed to the brand's long-term success. While the company is facing some challenges, it's important to remember that KTM is more than just a motorcycle manufacturer. It's a global powerhouse with a diverse range of businesses under the Pierer umbrella.

There's been ongoing communication with dealers, assuring them that the company is working diligently to overcome these challenges. The goal is to ensure the future of KTM and its dealer network.

KTM Undergoes Strategic Restructuring

Pierer Mobility has initiated a self-administered restructuring process. This proactive step involves the company taking control of its own reorganisation, guided by external advisors. The goal is to streamline operations, reduce costs, and secure additional capital through investment.

Essentially, this restructuring allows KTM to pause, reassess, and optimise its business model. By temporarily scaling back certain operations, the company can focus on core strengths and emerge stronger in the future.

Temporary Production Pause

KTM has announced a temporary two-month pause in motorcycle production. This decision aligns with current inventory levels, allowing dealers to focus on selling existing stock. While this pause might impact future availability, it's important to note that certain models may be in limited supply even after production resumes.

We recommend planning your purchase carefully, as some popular models could sell out quickly.

Limited-Time Rebates on Runout Models

Please note that current rebates on runout KTM models will expire at the end of 2024.

To maximize savings, consider purchasing a runout model before the year ends. It's possible that rebates may not be available on these models in 2025, which could result in higher prices.

KTM's Recent Challenges

KTM's recent financial difficulties stem largely from significant investments in brands like MV Agusta, GASGAS, and e-bicycle development and release (under other brand names). During the pandemic, when consumer spending surged, the company made strategic decisions based on this elevated demand. However, as economic conditions have shifted, KTM has had to reassess its spending and financial strategy.

As the self-administration process unfolds, we anticipate some changes within the company, potentially involving the sale or discontinuation of certain brands or products. Despite these challenges, we remain confident in KTM's long-term future, as it is a core asset for Pierer Mobility.

Don't Believe the Hype: Parallel Twin Engine

There's been a lot of unfounded speculation online about the reliability of KTM's parallel twin engine. It's important to note that most of these claims come from people who haven't owned or even considered buying a KTM.

The truth is, real-world issues with the parallel twin engine are extremely rare. In fact, KTM offers a 10-year warranty on this engine against the crankshaft failures, a testament to its confidence in its reliability.

Don't let online rumours sway your decision.

KTM's Commitment to Racing

Recent online rumors about KTM's future in motorcycle racing are unfounded. The company's involvement in top-tier racing is backed by significant sponsorship, ensuring its continued participation. While smaller teams like GASGAS may face uncertainties, KTM's core racing programs remain secure.

It's important to remember that the automotive industry is constantly evolving. Factors like emissions regulations and corporate vision can influence a company's decision to participate in racing. As we've seen with manufacturers like Suzuki, strategic shifts can lead to withdrawal from certain racing series.

KTM's Financial Outlook

It's important to understand that companies of all sizes, including KTM, can operate with debt. This is a common business practice. Just as individuals manage personal debt alongside their daily lives (think mortgage/car loan vs wages), companies can manage corporate debt while continuing to operate and grow.

KTM's recent restructuring efforts are aimed at improving its financial position. The company expects to return to profitability by the end of next year. In the meantime, it's business as usual for KTM here in Australia, and there's no reason to hesitate on your purchase decision.

This is written by us, Motorcycles R Us, by our understanding of official press releases, internal communications from KTM Head Office and meetings with KTM head office here in Australia. Please note that this is our opinion and may not reflect the views of others.