KTM's financial woes

I’m seeing it in the home renovation industry. Mid Nov-Mid Feb is the slowest part of the year, but it’s usually a steady trickle of work. But this off-season has really slowed up, I’m not getting any calls/leads. I have another month of work booked then I’m sitting at home scratching my sack.

 

where are you located and do you do cabinets?

 

Hey guys…quit this doom and gloom. I loaded up in about 3/4 million in forklifts and some aren’t even here yet….I don’t want to start crying.

Although if we get doom and gloom, my bank will be happy to make all those interest payments off of me.

 

I actually think there will be no huge firesale discounts in the future. Right now there were excellent deals because of new year models coming up, and winter being slower months in general.

Do you remember seeing Silverado's and Ford F150' at 50% off discount when Ford and GM filed for bankruptcy? I don't. Debt was wiped out, stimulus, whatever. Then business as usual.

This is all pure speculation, and I won't claim to be an expert in the manufacturing business.

 

I’m also in the no fire sale camp. If the majority of the inventory is 2025s (would make sense that it is), then they can just delay production of 2026s (or scrap that model year entirely) and be none the worse for wear other than some storage fees.

Releasing a glut of bikes on the market (which would tank the entire industry) doesn’t seem very likely, IMO.

 

I've felt this IS the fire-sale now on 2024 bikes, as 'we' are slowly grabbing the last of their old inventory.
Metro area dealers have very few of the more popular 24's left in the SE and are mostly sitting on a glut of smaller displacement bikes like 390/401, on down.
The dealers in the less populated areas may still be sitting on some of the more sought after bikes still, perhaps?

I would only conjecture that it will be a while before we see the '2025 models discounted.
I suspect Pierer Mobility AG is relying on the 'negative publicity' to draw folks into their dealers, looking for fire-sale deals on their bikes.

We are certainly spreading the word here on the 'beeb after all.

 

Eh I think they'll still have discounts. On the MX side, YZs and the latest Hondas have been getting very positive reviews. The Triumph 250 is also supposedly a perfect hybrid between a Yamaha and KTM.

The Japanese bikes are closer than ever to KTM - would you risk spending list price on an Austrian bike when there are alternatives from larger manufacturers who you know will be around in five years?

 

I guess I was not considering the apples to apples comparisons of MX bikes, as it's been a while since I've bought one.
I have always preferred Yamaha YZ 2-T bikes, but now the 4-T's all come with electric start.
Tough to beat the OEM KYB suspension of a Yamaha, or any of the Japanese bikes.
So price becomes a factor if you start with White Power (KTM rarely 'speaks' this name,) suspenders.

 

Yeah I do hope they turn it around. My SMR value will take a big shit if they fold. And I also want parts to be available lol.

 

I don't think the same way you do, @Senna .
The only competing bike would be a Ducati. I do not see them offering any discounts anytime soon.

 

Unless you are a company that needs to raise a ton of cash ASAP

 

I’m in Baltimore.

 

AH, OK, I have some cabinets that need refinishing in Vegas

 

A long-term production shut down sounds easy in theory.
The logistical realties in a heavily unionized factory with the trickle-down to the related company suppliers, etc, adds a bunch of complexity to accomplish this.
I suspect this is why they are in so deep currently, in the first place.

 

If you're not going to buy, care to share the location?

 

https://www.facebook.com/reel/2738547096328309

 

And I think there are a lot of them on sale that aren’t advertised on their websites. The Husky and GasGas models seem to be discounted the most. If you have a local dealer pop in and see if they have anything.

 

I wonder if this is intentional. If the KTM has 260K+ units in stock perhaps the dealers have agreed not to advertise the discounts (yet) so they don't create a race to the bottom (yet). Just thinking out loud, boss.

 

Not what's happening. They do have rules as far as how they advertise deals though. You wont see any major deals until rebates hit again. There just isn't much margin in these things for dealers to have blowout pricing without losing money. There is maybe $1,500 in total profit on a dirt bike and thats if they charge freight.

 

What he said. Unless KTM offer big dealer-facing rebates / discounts, then prices can't drop much further otherwise dealers are the ones losing their ass on selling super low.

I think there's also a general consensus that KTM is not going to close its doors for good, but might be starting a rough patch where they sell a lot less bikes globally for a few years until they can build back financial stability and customer confidence. That means there will still be new bikes coming out each year, MSRP pricing on those bikes, etc. etc. It's not like they've gone out of business and there's a mass liquidation of every asset.

That is still possible, sure, but not probable.