- Joined
- May 21, 2010
- Messages
- 595
- Location
- San Francisco, California
We've all heard the news, KTM is entering Administrative Reorganization (in the states we call it Chapter 11 bankruptcy). This isn't KTM's first bankruptcy reorg, but I feel it may be their last. If the rumors are true and they owe 3 billion dollars to creditors, they will have a difficult time reorganizing the company to make up that kind of debt. However, I don't think the creditors are interested in dissolving the corporation because they won't see a dime as opposed to eating some capital while maintaining KTM as an ongoing concern.
My bet, they fold Gas Gas because there are no buyers willing to take it on (hell, it's only a name at this point since it's all KTM under the plastic) and they will likely sell off Husky if there is a buyer (it has historical name brand value - Like Indian).
After that, they have to trim down their product line (how many bikes are they selling now? 36 different models?). Finally, they have to put out a better product with warranties that are honored by HQ. I've never owned a KTM, but I have friends that have had no problems with their old 990s and others that have had non-stop headaches with fuel mapping.
I don't know how Bajaj (41% share holder in KTM) and CF Moto play into the mix, but they both have a lot at stake. Will one of them just buy out KTM? What do you guys think, is KTM going to make it?
My bet, they fold Gas Gas because there are no buyers willing to take it on (hell, it's only a name at this point since it's all KTM under the plastic) and they will likely sell off Husky if there is a buyer (it has historical name brand value - Like Indian).
After that, they have to trim down their product line (how many bikes are they selling now? 36 different models?). Finally, they have to put out a better product with warranties that are honored by HQ. I've never owned a KTM, but I have friends that have had no problems with their old 990s and others that have had non-stop headaches with fuel mapping.
I don't know how Bajaj (41% share holder in KTM) and CF Moto play into the mix, but they both have a lot at stake. Will one of them just buy out KTM? What do you guys think, is KTM going to make it?
