KTM has been in the news for its financial situation and things don’t look good for the Austrian motorcycle maker. Having agreed to court-supervised restructuring to avoid bankruptcy just a few days ago, the brand has cut down on a lot of activities. Amidst all the hassle, Bajaj is likely to infuse a massive chunk of money to bail out the Austrian brand.
Bajaj already builds many of KTM’s smaller displacement motorcycles such as the 200 Duke, 250 Duke, 390 Duke, the RC range and the newly-launched 250 and 390 Adventure range.
Bajaj to invest Rs 1,360 crore
Going by various reports, Bajaj is likely to invest Rs 1,360 crore into KTM to give it some financial relief. The Board of Directors have agreed to invest in Bajaj Auto International Holdings BV, Netherlands, a company that holds a 49.9 percent stake in Pierer Bajaj AG, which owns 75 percent of KTM’s parent company, Pierer Mobility AG.
It is unclear at the moment if Bajaj will become the majority stakeholder after the investment and how the companies will operate post this. However, there is a twist in the story and a very German one.
BMW to buy out KTM?
As per multiple sources online quoting Austria’s oe24, BMW is interested in KTM. Going by reports, BMW is looking at moving the production out of Austria to India or with CFMoto, while moving the R&D to Germany. This could also mean a loss of almost 4,500 jobs in Austria. What this means is that Husqvarna will be back under BMW, like how it was from 2007 to 2013 before KTM acquired it. So far, BMW has commented saying these are “purely speculation.” More details will emerge after KTM’s court date today, so stay tuned.
