KTM’s MotoGP leadership has decided to pause bike development amid the financial crisis faced by the Austrian manufacturer. This move is part of a broader strategy to save KTM’s sporting ventures following the company’s insolvency last week.

It was revealed that KTM, part of the Pierer Mobility group, has a debt of around €3 billion. During the final MotoGP race weekend in Barcelona, a meeting at KTM’s headquarters announced the financial situation to the staff, while reassuring them that the racing program would continue in the championship.

Cost containment has been a longstanding focus, and the pause in bike development was another point discussed in the meeting. This pause will impact the bikes to be used next season by Pedro Acosta and Brad Binder in the factory team, as well as Maverick Viñales and Enea Bastianini in the Tech3 squad. Development efforts will remain on hold through the winter, resuming only during the pre-season test.

At the recent post-season test in Barcelona, updates to the RC16 bike were minimal, limited to a new fairing and some updated screens. Neither test rider Dani Pedrosa nor Pol Espargaro participated in the session.

While KTM has privately assured its teams of its commitment to the 2025 MotoGP season with all four bikes, there are rumors of concerns from promoter Dorna regarding the manufacturer’s future stability.

In recent months, KTM has undergone significant restructuring. Various branches, including KTM AG, KTM Components GmbH, and KTM F&E, have been separated, with the racing division placed under KTM Racing GmbH. Although initially seen as a safeguard for the racing arm, KTM’s financial issues have proven much greater than expected.

In light of this, KTM is expected to present a strategic plan aimed at isolating the racing division. Internally, maintaining the sporting program is deemed crucial, as its loss could severely damage the brand’s image and negatively impact sales.

Growing Crisis

The first signs of KTM’s financial troubles emerged in mid-2024, with reports of overproduction, declining sales, and setbacks in its electric bike project. By late summer, rumors about the company’s instability had spread across the paddock.

Despite reassurances, including a statement from Acosta after the Misano test in September, the situation worsened. The tipping point came last week with the public announcement of insolvency and confirmation of the €3 billion debt.

KTM now faces the challenge of balancing its financial recovery with its commitment to MotoGP, as the company works to navigate this critical period.