Look, based on everything that's been going on with KTM, I won't discount any new rumor that hits the streets. Why? Because most of them have come to fruition in the manner that was originally reported on. See KTM's denials about its financial situation or that the MotoGP team wasn't leaving the sport and then, well, you already likely know what happened.
So when I hear a rumor such as BMW is actively interested in, or potentially already in the process of, purchasing the struggling brand and its assets, well, I have to take that seriously. Especially since BMW, at least the Motorrad side, is doing so freakin' well right this very instant. And, honestly, I could absolutely see a company like BMW seeing KTM as an asset.
So let's talk about this rumor, and how it also could potentially see KTM's entire staff laid off.
Currently, the brand's next court date is meant to be for tomorrow. And according to the Austrian outlet oe24, the folks over at AKV, the debt restructuring group that's helping KTM through its insolvency proceedings, a clear favorite to take over the company is that of BMW.
Not CFMoto or Bajaj, as has been reported before.
"On Tuesday, 25. February, the creditors will vote on the future of KTM AG at the Regional Court in Wels," states the outlet, adding, "The insolvency administrator Dr. Peter Vogl (law law law Putter Vogl & Partner Rechtsanwälte in Ried im Innkreis) has a preference for a specific buyer, named BMW Motorrad."
But the outlet goes on to cite an insider that the supposed deal with BMW would "continue the brand" but move everything out of Austria, i.e. manufacturing and its employees. Indeed, the report states that BMW would dismiss the brand's 4,500 remaining employees by the end of the year. That, however, feels a little outside the norm of acquisition, even for KTM which has been laying folks off left and right.
Despite its issue, KTM is a massive company. There are roles that are required for it to continue, if that's what happens. Engineers and designers, folks in accounting, and the regular laborers who actually build and ship the motorcycles are and would be needed. It'd be extremely difficult if BMW wanted to continue the brand to do so without those people or some support staff, even with BMW's already-built motorcycling infrastructure.
Now, what I could see happening—if any of this comes to fruition—is that BMW move production further out of Austria and partner with brands like CFMoto or Bajaj to further enhance those partnerships and reduce costs throughout KTM's lineup. They'd need to in order for the brand to become profitable once again. But killing the Mattighofen facility outright, as well as its employees, doesn't really make sense when the industrial footprint is already there and ready to support the production of a few choice motorcycles.
Scaling back the footprint, however, makes sense.
I've reached out to both BMW and AKV for comment, with a BMW representative stating the rumor is "purely speculation." That's not an outright denial, and I haven't heard from AKV at the time of publication. But suffice it to say that tomorrow's court date is going to be an interesting day for KTM no matter what happens.
