Is KTM planning to exit MotoGP due to financial struggles?

The Austrian firm KTM is in a historic financial struggle this year, and there were many speculations about the company leaving MotoGP and other racing competitions to reduce struggles. The investors are putting pressure on the company to save cash but the brand is committed to competing in the pinnacle of bike racing.

KTM  brand is facing a big financial struggle and has a debt of more than 2.9 billion euros. To continue operations and have now entered the self-administration to reduce costs. The company is planning to cut 750 jobs across many departments. 

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Huge financial struggle for KTM 

They bought the Italian superbike brand MV Augusta which was already in a big debt and added to its struggle. But following all the money struggles the brand is still committed to Motorsport. A statement said “Today marks an important day of KTM with the confirmation of our restructuring proceedings. We are proud to confirm that motorsport remains an integral part of this restructuring plan.

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KTM stands firmly committed to motorsport. We repeat our statement for 2025: we will continue to race in MotoGP! We are re-energised with today's positive outcome and thank you for your support.” The brand is looking for external funding to settle its debts and continue its operation. They also halted the development of their MotoGP bike RC16 earlier this month. Apart from MotoGP, the brand is participating in Moto2, and Moto3 and has a satellite team Tech 3. 

They are also participating in the Dakar Rally competition in January. MotoGP is the top racing competition for superbikes and KTM is one of the biggest teams competing against Ducati, Yamaha, Honda and Aprilia teams. KTM’s MotoGP team signed Pedro Acosta who won ‘young rookie rider of the year 2024’ for the 2025 season. He will race alongside Brad Binder. They also have another satellite team Red Bull KTM Tech 3 having Maverick Vinales and Enea Bastianini as their riders.

The Factory team finished sixth in the Teams championship and second in the Constructor's championship. KTM is seen as the potential brand that can end Ducati’s reign in the tournament and it is very sad to see they are now caught in a financial struggle.

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