KTM Reconfirms Commitment To MotoGP Project Amid Rumors Of Termination

Saajan Jogia | 15 Hours Ago

Apr 13, 2024; Austin, TX, USA; Brad Binder (33) of South Africa and Red Bull KTM Factory Racing rides during practice for the MotoGP Grand Prix of the Americas at Circuit of The Americas. Mandatory Credit: Jerome Miron-Imagn Images / Jerome Miron-Imagn Images

KTM's MotoGP project is reportedly set to be axed as part of cost-cutting measures amid the company’s insolvency proceedings. During Friday's creditors’ meeting at Austria’s Regional Court, it was revealed that the brand would continue operations under self-administration while addressing its €1.8 billion debt. Investors have shown interest in a €700 million payout to support restructuring efforts. However, the latest statement from KTM suggests the Austrian motorcycle giant is committed to its racing endeavors, including Moto2, Moto3, and MotoGP.

Staff layoffs have been revised down from 500 to 300, with plans to pay November and December salaries by late January if all proceeds as expected. However, details on the MotoGP project were initially unclear, leaving uncertainty about its future. KTM released a statement on Friday but there was no reference made to the future of its MotoGP project.

What made matters worse was a statement released by the Alpenlandischer Kreditorenverband (AKV), the creditor protection body, which stated that KTM's participation in Moto2, Moto3, and MotoGP was being withdrawn to reduce costs. To clear the air, KTM has informed Crash.net that it remains committed to the MotoGP project. The statement read:

"Today marks an important day for KTM with the confirmation of our restructuring proceedings. This milestone secures our plan moving forward, and we are proud to confirm that motorsport remains an integral part of this restructuring plan.

"KTM stands firmly committed to motorsport. We repeat our statement for 2025: we will continue to race in MotoGP!

"We are reenergised with today’s positive outcome and thank you for your support."

The statement aligns with the revelation of Pedro Acosta's manager, Albert Valera, who confirmed after their visit to KTM's headquarters in Mattighofen, Austria, that the company remains committed to its MotoGP program despite its financial challenges. During meetings with key figures at KTM, Acosta sought reassurance about the potential impact of the crisis on the brand's racing operations. KTM responded positively, insisting that its MotoGP project remains unaffected by the ongoing situation. Valera said:

"Pedro and I had the opportunity to travel to Austria to see in person the real situation of the KTM project in MotoGP.

"Despite the delicate situation that the company is going through, the feeling is positive.

"We have been told at all times that racing is the essence of KTM, that they will continue working with the sole objective of winning the title.

"Pedro is committed to the project and feels more relieved and confident after the meeting."