Rumor has it that BMW intends to acquire KTM and relocate production to India.

      Austrian motorcycle manufacturer KTM is currently in a difficult situation. Its parent company, Pierer Mobility, which also owns the Husqvarna motorcycle brand, opted for court-supervised restructuring last week to stave off bankruptcy. Creditors are scheduled to vote on the proposed restructuring plan on Tuesday. If they reject it, Pierer could find itself back at the start, potentially in the sights of a well-known competitor looking to acquire the company and its brands.

      According to Austrian outlet oe24, BMW Motorrad is the name being mentioned, reportedly backed by Pierer’s insolvency administrator. However, BMW has dismissed this as "purely speculation" in a statement to RideApart earlier today. The aspect of the rumored plan that has drawn significant attention is the suggestion that BMW would close KTM's headquarters in Mattighofen, Upper Austria, shifting research and development to Germany and moving all manufacturing to India. Currently, KTM produces some models in India and China, but most of its products are manufactured in Austria.

      The article expresses concern about these developments, suggesting a dire outlook. It references a disembodied “insider” who warns that if the deal goes through, local suppliers in Austria could be left without business, and the loss of 4,500 jobs at KTM could lead to Mattighofen becoming an "industrial ruin."

      Oberbank, a creditor of Pierer, reportedly favors a BMW acquisition, as per oe24. Alternatively, the current management could remain in place with new financial support, enabling KTM to operate similarly to how it does now once the restructuring plan is approved. The future remains uncertain, with KTM's outcome not expected to be clarified until tomorrow.

      MotoGP racer Brad Binder tested his Red Bull KTM Factory Racing bike in Malaysia earlier this month.

      That said, it seems unlikely that BMW would swiftly shut down operations in Mattighofen and eliminate jobs, given KTM's established presence in Austria. While I don't possess any information beyond what's shared here, the alarming tone of the oe24 article gives the impression that those quotes might have been leaked by someone opposed to KTM becoming a subsidiary of BMW.

      Ironically, such a deal would return Husqvarna to BMW's ownership, a position it held from 2007 to 2013 before Pierer acquired it. Pierer also became the majority shareholder of MV Agusta nearly a year ago, but recently relinquished control of the Italian brand to its major investor, the Sardarov family. It has indeed been a tumultuous period for KTM, one that everyone involved—including the staff at the company’s bakery—would likely prefer to move on from.

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