KTM Cuts Staff, Plans Decreased Production Publish date: Apr 24, 2009 Source: Dealernews KTM says it plans to cut production 25 percent this year compared to last year as sales for its off-road bikes continue to fall. KTM motorcycle sales for the half-year ended Feb. 28 were €213.5 million ($279.8 million), down 25.9 percent from €288.2 million during the same six-month period of the previous business year. Revenue fell 33.3 percent to €102.7 million ($134.6 million) in the Off-road Product Group; slumped 24.4 percent to €38.8 million ($50.8 million) in the Street Product Group; and decreased 13.2 percent to €54.1 million ($70.9 million) in the Related Product Group. The company sold 5,452 sportminicycles during the first half of the year, up 595 units compared to the same six months in the previous year; 20,462 off-road motorcycles, down 12,271 units from the comparable period; and 5,252 street motorcycles, down 1,604 units from the comparable period. ATV sales totaled 696 units, down from 1,390 units in the comparable half-year period. RESTRUCTURING KTM this month completed the staff cuts and finalized plans for the capacity adjustments that it had announced in January. The OEM intends to produce about 70,000 motorcycles this business year, down 25 percent from production last year. The OEM recently dismissed approximately 300 employees and, from May to August, plans to install shortened production shifts. The company says 733 of its 1,482 employees in Austria will be affected by the shortened shifts. “Our new reduced working hours scheme will mean that we can largely prevent further cutbacks,” says Stefan Pierer, CEO of KTM Power Sports AG. “We can also create liquidity by reducing the dealer stocks and KTM stock as planned.” PRODUCT DEVELOPMENT Despite the gloomy outlook, KTM says it is investing heavily in research & development. Key projects are the development of a 125cc street motorcycle together with Bajaj Auto Ltd and the development of an electric powered off-road bike. Both motorcycle types are to be offered in the 2011 model year. The 125cc street motorcycle destined for the European market will be presented at the EICMA international motorcycle exhibition in Milan in November. The 125cc model for the Indian and emerging markets will be unveiled at the Delhi motor show in January 2010. KTM says co-development with Bajaj will continue on other models and vehicles featuring “alternative drive concepts” for off-road and urban use. As Dealernews previously reported, KTM has filed a patent application for a two-wheel drive motorcycle whereby the front wheel is driven by an electric motor and the rear wheel is driven by an internal combustion engine. However, whether the alternative drive concepts the OEM refers to include a two-wheel-drive application remains to be seen. KTM ended its 2007/2008 business year Aug. 31, 2008, with sales of 92,385 units, up from 90,306 units sold during the 2006/2007 business year and 83,985 units sold in the 2005/2006 business year. The OEM currently operates 19 sales subsidiaries and five joint ventures that distribute products to 1,400 independent KTM dealerships worldwide. Submitted by Guido Ebert http://www.dealernews.com/dealernew.../Article/detail/594989?contextCategoryId=2704
Nobody wants to buy a Katoom anymore because of three things 1st- KTM's are over rated as far as I'm concerned 2nd- They cost to much 3rd- They cost way to much
Plus, they seem to nickle and dime their owners half to death. (As a former owner of one, I think that I can safely point that out.)
That is the absolute truth right there. I really like my KTM a lot, but I've almost had to take a second out on the house in order to purchase fork seals and other assorted parts. The bikes themselves have gotten pretty expensive, too. Not that $8310.83 OTD for my 450 EXC in 2003 wasn't expensive... WoodsChick
The KTM business model in the last 10 years reminds me a lot of the US real estate market. The market could only go up, right? Orange is so heavily leveraged, and has been for several years now, that its scary. I have to wonder if they will survive at all. KTM cars? KTM quads? KTM prfessional racing at every single freakin type of racing-from dakar to SX to road racing. The extra cost of the bikes isnt only because they are made in europe. Its just as much because they have to pay millions and millions on racing, and excessive R and D. IMO they should have stuck to non MX dirt bikes, and only that, and kept racing to just WEC, GNCC, and a few regional efforts. SX, Dakar, the KTM car, the quad, the street bikes, its all a bit much. Honda was at the right place at the right time to morph into a big multi national with cars and now even planes, Austria in the early 21st century is not gonna be able to echo the J bike growth of a generation ago. --------------- This should all be a lesson to Husky. Stay small and passionate. Dont waste money on racing. Find niche markets and exploite them. Stay innovative and ahead of the curve (street legal dirt bikes, FI). Develop the support system. (delaers, media, aftermarket) Personally i think the only new product Husky should work on is an electric mini bike.
Personally, I think KTM will be fine... they have that whole India thing going on. In a few years all KTMs will be manufacture in India.... watch and see. JustSaying
Every company is facing some cutting back this year. I do see a lot of orange at local enduros though. The economy and the big "H" could be hitting KTM sales.
Husky spend a lot of money on Racing in the WEC and Euro Rallye events, SM and now MX. All right its not the level that KTM are in at, but it is neccessary to further the development of the bikes surely. Alec
