ElectricMotorcycleForum.com
General Category => EV Stocks => Topic started by: Richard230 on November 26, 2024, 08:21:48 PM
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This YouTube "click-bait" - style report seems to believe that could be the case. At minute 11 there is mentioned that their ebikes were not selling and dragging the company down. The presenter claims that they are giving away their electric motorcycles to employees rather than to try selling them: https://www.youtube.com/watch?v=nhXwI7OdIjo
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Spite's Corner did a good vlog on this recently. His take was that we shouldn't worry until they sell off Gasgas. I don't know if I share his optimism, though. KTM has really ruined their reputation by selling unreliable bikes and trying to weasel out of warranty claims. I only know one person who bought one, and he is suing them right now over the cam wear issue.
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Yeah it's mostly their own doing. I don't really get how the business side of it works but I don't understand why it's KTM that were after €100m of investment and have gone into self-administration, when it's Pierer Mobility that owns them. I would have thought that for KTM to be struggling then everything Pierer owns would also have to be, or they'd just sell off MV, Gasgas, Husky, whatever was needed (seeing as KTM provides over 95% of their revenue). They're all fairly recent acquisitions so it's not like Pierer have a lot of history invested in them, and most of the models are just rebranded KTMs. It comes across to me like the son of a billionaire going to the bank for a lone instead of just asking pops.
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I made it to minute 6:51. why listen to a computer talk with helicopter sounds at the same time. I do see the text on the screen stating divident cut from 2 euro to half an euro per share. They are still paying a dividend. Off road in New England KTM is the dominant brand. It seems a good topoc for moto journalists like lots of the electric motorcycle articles linked on here. There are or have been deals on new left overs the likes of which I don't think have occured since 2004 or so. Even last year my dealer was no fees for 2023 models, it may be similar for 2024 models and more disscount There are massive threads over at ktm talk. The racing programs seem to be getting consolidated and the desert racing in the video is quite dangerous.
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I was also disappointed in the presentation. The information was there, but the way it was presented was very distracting. :(
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Here is a more understandable Motorcycle.com article with an update on the situation at KTM. It doesn't seem to be getting any better: https://www.motorcycle.com/bikes/news/ktm-ag-enters-self-administration-to-restructure-debt-44613250
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Here is the latest KTM reorganizing and restructuring news: https://www.motorcycle.com/bikes/news/ktm-sets-a-new-course-forward-44618251
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Adventure Rider dug into the details behind the deal, finding that it managed to benefit both KTM and its creditors. This is rare in court hearings, where good compromises often leave everyone unhappy, but the KTM decision seems like a true win-win: Creditors get more money than they could squeeze from a bankrupt bike maker, and we get a KTM that still makes bikes. From Adventure Rider:
The deal is this. For now, KTM AG must repay €548M by May 23, 2025. This is 30 percent of the money KTM AG owes; perhaps more will be repayed in the future, but it seems that the debt is written off. The creditors may not be happy with this, but reports from Europe say they would only have received 15 percent repayment, half of what they're actually scheduled to receive, if there had been no deal worked out. They could also have been required to wait as long as two years for any money to be repaid, while the current deal sees the debt settled in three months. Much of KTM's debt had been purchased by the US-based Whitebox hedge fund, who was pressuring KTM to pay back more than the 30 percent. Euro magazines report KTM AG's reps had been trying to work out a deal to make everyone happy until late Monday, and that it took five hours in court today (February 25) to finalize the details of the current repayment plan. Reportedly, several dozen parties were in the courtroom, representing financial interests from all around the globe.
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It may not be all cupcakes and puppydogs for a while yet.
Ok, so they got a dealing that left a lot of people squealing. They would love to smile and say, ok lets go back to making bikes, then go to person they screwed number 1 and say, I need 10000 more units of this, and person number 2, I need 5000 units of that for my bikes! Those people, can then say, well sure but... it needs to be COD, no more credit for you, given the past and all.. so now they need cash up front to continue, they can't finance and kick it down the road like they have been. Is the cash there? Everything may look nice and dandy on paper but in real life....
we shall see.
Aaron
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Nobody's going to do business with them unless they can credibly explain how they got into this mess in the first place, how it managed to get so deep, and how they're going to prevent it happening again.
Cas :)
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FortNight weighs in on the KTM situation with one of his videos: https://www.youtube.com/watch?v=QrRzNd-basQ
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I remember when you predicted problems at Alta when they dropped their price drastically.
Energica dropped their price, and we see what happened.
Last 2023 Ktm battery bike I bought was $6k with like $130.00 in added fees, msrp was like 11K. Now I find out it was not an in house design, the charger is marked made in China on the box, I did not get a box for the battery and no made in on the actual battery.
I am not watching that guy I think if I do his videos will appear in my suggestions en mass.
I am sort of curious if suppliers like Wp for suspension which is in the same family get stuck at 30 cents on the dollar for sure and maybe more later.
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Here is the latest KTM financial troubles news. This one is more about the legal situation as of earlier this month: https://www.mcnews.com.au/ktm-bajaj-update-april11/
And this article, published yesterday, brings you up-to-date regarding the latest KTM drama: https://www.advpulse.com/adv-news/ktm-forced-to-halt-production-once-again/
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This is kind of sad to see. It isn't just niche stuff like electric, it's the entire industry thats taking a beating, and even when they get help they are still getting smacked. Hopefully it all works out because at the end of the day, anyone going down is a blow to all of us.
aaron