https://www.motorcycle.com/bikes/news/ktm-sets-a-new-course-forward-44618251
As usual YouTuber FortNine produced an excellent video discussing KTM's
rise and downfall with his usual dose of humor, irreverence and good information. I highly recommend watching it, and his stuff in general.
KTM's saga is interesting. Now deposed CEO but still major KTM
shareholder Stefan Pierer, who is a billionaire, joined KTM as major shareholder and eventual CEO in 1992 when KTM went BK. Pierer
aggressively grew and transformed KTM from a regional producer of dirt
bikes to the full line large manufacturer it is today using copious
amounts of debt along the way. Debt is leverage, it can be great when
business is going one's way, but it is a nightmare when business doesn't
go one's way.
Pierer obviously is a big thinker, but there is irony in that in the end
he succeeded in taking KTM from making a comparatively small BK crater
in '92 to the current massive canyon it finds itself in today. KTM's
leadership simply failed to "read the room" as far as demand for their
products goes. Compounding the over production issue, the subscription
fees to unlock features already on the bikes was a major customer
irritant. The probable nail in KTM's coffin was arrogantly
ignoring/denying it's reliability issues for way too long. Companies
simply can't afford to operate that way in today's highly connected world.
I own two KTM products, a 300 XC and a Husky 701 enduro and for what
it's worth, both machines have been rock solid. Would love to have
bought them from Japanese brands, but they are both bikes that Japan
refuses to make.
KTM has many faults and quirks, but I salute the company for producing
bikes that are aggressive, fun to ride and just plain unique. I hope the
brand can survive all this with at least a piece of it's personality
intact, the sport is poorer for it without KTM.
The saga of KTM is worthy of study as a cautionary tale in business
schools around the world. Taking on debt to grow a business can be good
until it isn't, use it with due caution...
--- SoupGate-Win32 v1.05
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