Motorcycle brand KTM is teetering on the brink of bankruptcy. But now BMW wants to save the business, which owes 19 billion, writes the media.
BMW Motorrad is reportedly considering taking over Austrian manufacturer KTM, which is currently restructuring to deal with a debt of over 19 billion kroner.
BMW's interest in KTM is not new. BMW has previously expressed interest in expanding their presence in the motorcycle market.
This is reported by OE24 .
An acquisition of KTM will give them a stronger position, especially in the off-road segment, where KTM is one of the leading manufacturers.
KTM is facing a potential takeover by BMW Motorrad. It could bring significant changes to the Austrian motorcycle manufacturer and its affiliated brands. A decision could be made within the next 24 hours.
It is expected that there will be a vote among creditors on the company's future. This will give an indication of whether a deal with BMW is likely. BMW's interest in KTM is not new.
A takeover of KTM would give the Germans a stronger position in the motorcycle market, especially in the off-road segment, where KTM is among the leaders.
But if BMW takes the offer seriously, the Germans will also have to deal with a stock of more than a quarter of a million motorcycles that have not yet been sold.
KTM is currently in a very difficult situation. The company is struggling with serious financial problems and has been forced to initiate a major reconstruction.
This has led to speculation about whether the Austrian brand can survive on its own.
Among the potential buyers is Indian motorcycle manufacturer Bajaj Auto, which is already a partner of KTM and owns a significant stake in the company.
There are also rumors of interest from Chinese companies. The outcome of the vote among creditors is still uncertain.
However, it is clear that a takeover of KTM will have major consequences. Not only for the company itself, but also for the many employees and for the brands associated with KTM.
– We are just following the development and cannot do much, says Henrik Sjöström, Husqvarna's press spokesman in Sweden.
KTM also produces motorcycles under the Husqvarna brand. It is unclear what will happen to Husqvarna if BMW takes over KTM.
It is possible that BMW will choose to continue production of Husqvarna motorcycles, which operate under license from the parent company.
But it could also be that the Germans are only interested in the KTM brand. Whatever happens, it is a fact that the former CEO of KTM, Stefan Pierer, resigned on January 23rd of this year.
It was he who saved KTM from another impending bankruptcy in the 1990s. It is also certain that KTM as a brand has withdrawn from the world of motorsport. Read more about it here .
