BMW Motorrad is rumored to be eyeing a takeover of Austrian rival KTM, according to a report from oe24. However, the potential deal is already stirring controversy, with claims that BMW plans to relocate KTM’s operations out of Austria, potentially putting thousands of jobs at risk. KTM, Europe’s largest motorcycle manufacturer, has been struggling financially and entered self-administration late last year. On Tuesday, creditors will vote on a restructuring plan that would allow KTM to repay 30% of its €2-plus billion debt by the end of May.
Reports suggest the company has secured up to €900 million from outside investors, which could help it meet its obligations and stabilize operations. However, if the creditors reject the plan, KTM could be forced to declare bankruptcy, potentially opening the door for BMW to step in. According to oe24’s sources, BMW’s reported takeover plan would strip KTM of its Austrian roots. Instead, BMW would move KTM’s research and development (R&D) to its Munich headquarters, while production would shift to India, where KTM already has manufacturing ties with Bajaj Group. KTM’s Austrian workforce accounts for 4,500 employees.
BMW’s MotoGP Aspirations Gain Traction?
Beyond KTM’s financial struggles, this move could also signal BMW’s long-rumored entry into MotoGP. BMW has previously expressed interest in joining the ultimate motorcycle racing series in 2027, and a takeover of KTM—one of MotoGP’s most competitive manufacturers—could fast-track that ambition. Last year, BMW reportedly acquired data from Suzuki’s now-defunct MotoGP team, fueling speculation that it was preparing for a future entry. The Bavarian brand currently competes in World Superbike (WSBK) and won its first title in 2023 with Toprak Razgatlıoğlu, who has hinted at wanting to race in MotoGP.
Everything hinges on Tuesday’s vote. If creditors approve KTM’s restructuring, the company could survive under its current ownership with fresh financial backing. But if the plan is rejected, KTM could go bankrupt—making a BMW buyout much more likely. We reached out to BMW Motorrad for a comment and we will update the article accordingly. [Top Photo: KTM Press Room]