KTM has been in the international news with its growing financial concerns. The latest in the update is with KTM’s parent group, Pierer Mobility AG’s latest acquisition, MV Agusta. The Austrian brand has severed ties with the Italian brand just months after it acquired the company. KTM is looking at major restructuring to deal with its financial loses and become profitable again.
The KTM-MV Agusta story
Earlier this year, KTM acquired 50.1 percent stake in MV Agusta. Back in November 2022, KTM bought 25.1 percent stake in MV Agusta, while also taking over the supply chain and purchasing of MV Agusta in 2023. Later, KTM bought 25 percent stake again, as part of the deal. As per their medium-term plans, a capacity of 10,000 motorcycles was planned at the company’s plant in Varese.
Now with the financial crisis, MV Agusta has been dropped from KTM’s portfolio and production will move back to Italy. In a statement, MV Agusta has mentioned that it is doing well and over the last two years, it has retained about 60 percent of its management and also added new specialists to the mix. MV Agusta is now an independent company based out of Italy.
KTM’s financial crisis
KTM’s major market has been Europe and with the change in interest in motorcycles in the market, along with supply chain constraints and the transition to electric motorcycles, KTM has taken a hit. The off-road motorcycle specialist has taken a hit in the American market as well. All these have added to the current situation for KTM, however, the company still has the Husqvarna and Gas Gas brands under its portfolio.
