KTM, the Austrian manufacturer, is facing a critical juncture that could lead to its departure from MotoGP and its support classes (Moto2 and Moto3) by 2026. This decision stems from a large-scale restructuring effort prompted by significant financial challenges.

The First Hint of Change

On December 20, the first-ever public suggestion of KTM’s potential exit surfaced. A report by the Alpenländischer Kreditorenverband (AKV) revealed that “to reduce costs, an exit from MotoGP, Moto2, and Moto3 is planned,” following a meeting with Austrian creditors.

Austrian newspaper Der Standard has since added weight to this speculation, reporting that KTM intends to part ways with racing at the end of the 2026 season.

Holding On For Now

Despite these developments, KTM has reaffirmed its commitment to the 2024 season, aiming to minimize reputational damage if an early withdrawal becomes unavoidable. Current contracts with its four riders—Pedro Acosta, Brad Binder, Maverick Viñales, and Enea Bastianini—are valid until the end of 2026. Furthermore, the company has agreements with Dorna Sports through the same period.

Expensive Racing

Motorsport has long been a costly venture for KTM. In 2023 alone, the company reportedly spent €95 million on its racing efforts. Now under self-administration since November 29, parent company Pierer Mobility Group has been working to stabilize operations.

A restructuring plan, currently valued at €250 million, has been submitted to the Wels Regional Court, with Pierer Industrie AG proposing to fulfill its obligations over two years.

Future Plans

The motorsport division is reportedly in talks with potential investors to address its financial challenges. However, the ultimate decision hinges on a court vote scheduled for February 25, 2025. This hearing will determine the fate of KTM’s restructuring plan.

Temporary Relief for Workers

For now, KTM’s workforce has received some relief. Between Christmas and New Year, Austrian broadcaster ORF confirmed that December wages were paid on time. Outstanding November wages and Christmas bonuses are expected to follow in January, supported by the insolvency wage fund. This development provides temporary solace to approximately 3,600 employees in Upper Austria.

A Decisive Moment for KTM

KTM’s story serves as a reminder of the financial pressures tied to competing at the highest levels of motorsport. As the company navigates this turbulent period, the 2025 court decision could redefine its legacy—not just in MotoGP, but across the racing world.

Will KTM remain in MotoGP beyond 2026, or will its iconic orange machines become a thing of the past? Only time will tell.