From a German authority

Allegations of Manipulation Against KTM: Investigation Underway

On an adjusted basis, KTM improved its operating result from a loss of 256 million euros to a loss of 25 million euros.(Bild: Markus Wenzel)

Motorcycle manufacturer KTM increased its revenue by 65 percent to 701 million euros in the first half of the year. Meanwhile, investigations into the allegations of manipulation against the company that surfaced in the spring are continuing. KTM itself has consistently denied the allegations.

The Innviertel-based motorcycle manufacturer KTM continues to face legal trouble. As reported, allegations surfaced this spring that the company was selling manipulated enduro bikes. Investigations by an international media network revealed that KTM “enables the systematic removal of speed restrictions on an entire line of its motorcycles even before they reach customers,” according to reports at the time. KTM, however, emphasized that while customers could have the speed limiter removed, they are informed that doing so would invalidate the motorcycle’s road approval. In this regard, the company stated that the allegations were based on a “fundamental misunderstanding.”

“An assessment is pending”
In any case, the matter continues to be under review by the responsible German Federal Motor Transport Authority (KBA): “The KBA has launched an investigation, which has not yet been completed. An assessment is pending,” the agency stated in response to an inquiry from the “Krone.”

The Austrian authorities are not (yet) involved in the case: “The vehicle models allegedly affected were all type-approved by the German Federal Motor Transport Authority. The KBA is therefore directly responsible for these vehicle approvals—and thus also for determining exactly which vehicle models are affected,” the Ministry of Infrastructure stated most recently. Only after the KBA’s investigation is complete will—if necessary—Austrian authorities be informed and “appropriate legal and regulatory steps taken, if required,” the statement continued.

Revenue and Motorcycle Sales Rise
On another note, however, KTM can report a success: In the first half of the year, revenue at the parent company Bajaj Mobility rose by 65 percent to 701 million euros. Motorcycle revenue for the KTM, Husqvarna, and GASGAS brands rose by 109 percent to just under 580 million euros. This is according to the half-year report.

According to the report, the Innviertel-based company has already sold 89,000 motorcycles from these three brands this year—about 43,000 more than in the same period last year. In addition, the new majority owner, Bajaj Auto, sold approximately 58,500 motorcycles in India.

“We’re selling more motorcycles at better prices, with significantly fewer discounts and a reduced cost base,” says CEO Gottfried Neumeister. The company cut its fixed costs by 66 million euros in the first half of the year, in part through job cuts. All in all, the flagship company now employs 3,600 people—700 fewer than a year ago.