Today, KTM is leaving behind its most complicated stage after Bajaj took over the majority stake in the brand. This entry of the Indian giant into the business conglomerate of Austrian origin is not to leave things as they were, but rather they are carrying out severe reforms, and will carry out more.
At the heart of the matter is the intention of the CEO, Rajiv Bajaj, to reduce business costs by 50% to restore stability to the operation. And who knows, whether to achieve the same financial results that have turned Bajaj into a company capable of self-financing.
One of the points where it is suspected that KTM could begin to reduce expenses would be in the racing department, KTM Racing. A group company, but at the time Pierer separated it from the main brand to give it its own identity. It was said that KTM Racing operated independently, but now it is said that it has an annual cost of 60 million euros, although it is not specified in which items.
That is to say, KTM Racing is much more than the MotoGP project, it is Moto3, the rookies and the different competition departments. What is known is that the possibility of KTM Racing changing hands is real, and that it passing into the hands of CFMoto is the most possible.
KTM would ask for 100 million euros for the sale
And according to information from Moto.it, on November 11 there was a meeting between the representatives of CFMoto and those of KTM in this regard. Of course, rumors point to a request from KTM for 100 million euros, although it is not specified in what concept.
That CFMoto is interested in MotoGP is something obvious and that they have not hidden and doing it with KTM would make a lot of sense, since they are two companies that have industrial collaboration agreements. Now, what does those 100 million euros cost? The entire department? The MotoGP team and its technologies? The MotoGP place to be able to participate with your own motorcycle? There are many unknowns and few certainties.
What is certain is that the KTM bikes in MotoGP have been evolving in the last part of the season, that the project is solid and that although they are not at the level of Ducati and Aprilia, they are getting closer. Therefore, neither keeping it in the case of KTM nor buying it in the case of CFMoto seems crazy, although we will have to continue waiting for developments.
