Source: Austrailien Adventure Bike Magazine

Bajaj comes to the rescue of KTM

The challenges at KTM are clearly not over and the company continues to ride the roller coaster according to Australia Adventure Magazine which reports that the 20 year love affair between major Indian player Bajaj (manufacturer of motorcycles) and Pierer Mobility Group AG looks set to be important and useful for KTM. KTM is currently hurtling towards critical deadlines to secure the future operation of the company (May 23) and until recently had large outstanding receivables to its existing creditors. This, of course, affects confidence in the company and obviously hampers access to important resources for the planned production of bikes and spare parts.

Bajaj has now injected fresh capital with a one-year loan that will secure operations for some time to come. According to AABM, approximately USD 990 million out of a total of USD 3.8 billion was due this week. In this case, big numbers are flying between the walls and there is little to suggest that this case is over. But to the delight of all KTM lovers, the good news is that they are clearly working hard to get KTM back on its feet. Let’s hope that no more bodies fall out of the closet on the way to a successful restructuring of the company.

Bajaj is obviously important to KTM and the community is currently celebrating the production of 1 million KTM 390 adventure models. What happens to the subsidiaries and Husqvarna and Gass Gass is not known and there is no doubt that KTM’s relationship with its subcontractors has been seriously damaged.

Only time will tell how this will develop, but we believe that KTM will survive as a brand.