Despite facing a financial crisis, the Tech3 team has been assured that KTM's MotoGP program will remain unaffected.

Earlier this week, Pierer Mobility Group announced it was in talks with its owner, Pierer Bajaj AJ, and existing creditors to secure bridge financing. The company reported a 27% drop in sales during the first half of 2024 and forecasted a weaker performance in the second half of the year.

In response to the financial problems, Pierer Mobility AG has reduced its board from six members to just two. Additionally, 309 jobs were cut in Upper Austria in the first half of the year, with another 200 layoffs in August, mostly in Austria.

Following these changes, the company has implemented further cost-saving measures, including plans to lay off up to 300 workers. Production will halt in January and February, and working hours will be reduced. Motorcycle assembly will shift from two shifts to one, with the production lines shutting down entirely at the beginning of 2025. Around 1,000 employees will remain furloughed for two months but will continue to receive salaries based on a 30-hour work week.

The company is also reducing its inventory due to disappointing sales in Europe and the USA, while unsold electric bikes have led to warehouses being full. Production is expected to resume in a single shift from March. KTM's net debt has risen from under 300 million euros at the end of 2022 to 1.5 billion euros by mid-2024, with the company’s share price losing approximately 90% of its value.

While it remains to be seen how Pierer Mobility’s financial troubles will impact its motorsport programs, the focus is shifting back to the KTM brand, with GasGas and Husqvarna taking a backseat. For example, only three KTM riders are scheduled to compete in the 2025 Dakar Rally. However, the MotoGP program, being the company’s largest and most expensive, is not at risk.

Tech3 team boss Herve Poncharal addressed the situation, stating:
"It’s never good news when you hear things like this, of course. But if you look at the entire mobility industry, everyone is suffering. The German car brands, which were once very strong, are now facing difficulties, as we see with Volkswagen. Everyone, from the car industry to the motorcycle industry, is struggling financially."

Poncharal continued,
"I have great respect for Stefan Pierer and Hubert Trunkenpolz. I spoke to Hubert recently, and he assured me that the worst is over. They’re confident they’ve made the right decisions. Now they have to make some tough choices, including reducing staff, cutting production capacity, and lowering prices to address inventory issues. These are the biggest challenges right now."

He added,
"There are impacts on racing, but they’ve told me they don’t want to touch MotoGP because that would be a mistake. MotoGP is the flagship, and that’s what Stefan and Hubert have said. I’d rather listen to them than read articles in the media. They’ve assured me that I have nothing to worry about. Yes, they are suffering, and tough decisions need to be made, but that’s part of running a business. There are ups and downs."

For 2025, Tech3 will again carry KTM’s traditional orange colors, having represented the GasGas brand in 2024. In 2021, KTM extended its contract with MotoGP promoter Dorna Sports, committing to the championship through 2026.