KTM find themselves in a desperate situation to keep their doors open amid a severe financial crisis.
The company are in self-administration under Austrian law, reporting debts of around £2.5bn. Subsequently, KTM are in the process of restructuring the organisation.
The Austrian manufacturer must find investment from other parties to save it from going out of business. KTM could not even pay their staff on time due to the financial woes.
Lewis Hamilton’s deal to invest in KTM is set to collapse – motorsport director Pit Beirer had confirmed the two parties were in advanced talks.
Mercedes could save KTM in the wake of Hamilton’s deal falling through. But their rivals and KTM’s main sponsor Red Bull are not a ‘serious candidate’ to pull the company out of uncertainty.

A ‘radical’ approach to KTM’s 2025 MotoGP bike was out of the question according to Wolfgang Felber
While senior figures at KTM say they are under no immediate threat, there is concern that the current situation will affect the motorsport division.
Stefan Pierer and Gottfried Neumister have repeatedly emphasised the company’s commitment to motorsport, with a final decision on their restructuring proposal set to be made by February 25. This is why Pedro Acosta did not visit the KTM factory a second time, having previously expressed concerns over the team’s 2025 bike.
The Spaniard has wondered whether the KTM machine will be competitive this season. Speaking with Speedweek, chief developer Wolfgang Felber confirmed the 2025 bike with be an evolution, saying a ‘radical’ approach was out of the question.
READ MORE: KTM Moto3 boss shares what manager has told him about team’s MotoGP future
“We are clearly talking about an evolutionary model in 2025. A radical new approach was out of the question,” he said.
“We already had our actual shakedown during the last tests in 2024. The 2025 version worked as hoped and the basis has been defined. The plan now is to build all machines accordingly with new parts.”
“There are differences in the ergonomics, which are different for all riders, as well as in the solutions for operating the rear brake.
“We can also take over some existing parts with low mileage. It doesn’t make sense to throw away a handlebar stub that is only a few kilometres old.”

Can KTM be competitive in 2025 despite their financial woes?
KTM’s financial situation might be a reason why the team are opting for an evolution of their 2024 machine in 2025. But its performance last season suggests that it will be promising this year.
KTM were second in the constructors’ standings in 2024. While Ducati dominated the championship with 19 wins out of 20 races, the Austrian manufacturer grabbed six podiums, with regular points finishes from Acosta and Brad Binder.
The duo will race with the factory KTM team in 2025, with Maverick Vinales and Enea Bastianini linking up with the satellite Tech3 team.
All four riders are factory-contracted until 2026 as KTM boast a strong rider line-up. Binder is well-established with the team, while Vinales and Bastianini bring experience and a winning mentality.
Acosta is MotoGP’s rising star and KTM will be desperate to keep hold of him, as the Spaniard could be available on the rider market come 2027.
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