Does BMW really want to buy KTM? Analysis of the clues and obstacles

In recent days, a rumor that shakes the motorcycle world has been circulating online: what if BMW bought KTM? A somewhat outrageous idea, but one that raises interesting questions about the intentions of the Bavarian manufacturer. In fact, this news was published by the Austrian media OE.24, which sparked the fire with surprising information. So, should we believe it? Is it really an opportunity for BMW?

Why would BMW want to buy KTM?

Let’s not fool ourselves, the first reason that seems to motivate BMW to consider acquiring KTM is the modernity of its facilities. KTM not only manufactures incredible motorcycles, but also has a state-of-the-art production plant in Mattighofen, Austria. Cutting-edge factory, R&D laboratory, assembly workshops for competition bikes, and even a wind tunnel (well, BMW has had that since 2004, but still!). By acquiring KTM, BMW could obtain ready-to-use equipment, hassle-free. Basically, it would be a great opportunity for them, adding a well-tuned production to their manufacturing chain.

MotoGP, the grand prize of competition

You know, MotoGP is the Holy Grail of motorcycle racing, but getting there requires a colossal budget and preparation time. BMW, which has already invested in WSBK, knows that the leap to MotoGP is enormous. However, KTM is already well established in the realm of competition, and if BMW were to acquire KTM, it would be a direct springboard into the world of MotoGP, without having to start from scratch. Buying KTM would be a significant step towards MotoGP for BMW, a major move for them!

Becoming the main player in motorcycles in Europe

It’s a bit like in football: you want to be the best or at least have more trophies than your competitors. In 2023, BMW produced around 209,000 motorcycles, while KTM manufactured 280,000. By buying KTM, BMW would become an essential player in Europe, a true heavyweight against Piaggio, the other giant in the motorcycle industry. This would give BMW a considerable boost, especially as they could also increase their market share.

The obstacles: between debts and negotiations

Let’s be realistic, buying KTM is not going to be an impulsive decision. The financial situation of KTM is a bit… complicated. The Austrian manufacturer carries debts of around 1.7 billion euros. And it’s not just a small number in the budget, it’s a huge amount that needs coverage. Besides managing the debts, BMW would have to buy shares from other shareholders and reach agreements with the various stakeholders involved. It’s not a simple formality; it’s more like a gigantic chess game with massive stakes.

Production and partners: What future will KTM have?

Even if it closed the Mattighofen plant, BMW would plan to retain part of the production. A large part of KTM motorcycles would be handled by its Indian partner, TVS. On its part, Bajaj would continue to be involved in the production of some KTM models, allowing for some continuity. However, this does not fully resolve the issue of managing production and suppliers. Many uncertainties remain regarding the future of KTM in this context.