The House of KTM continues to see dominoes fall after its near bankruptcy, death, and dismemberment only a few short months ago. While the group of companies, of which GasGas and Husqvarna are also included, was saved by one of KTM's prime investors and active partners, i.e., Bajaj, things aren't on as steady footing as the companies would have you believe.
A restructuring of the company's operations is occurring, as before the insolvency proceedings, the group was nearly $2 billion in the hole. And that comes from a lot of money mismanagement, heavy sales losses, sky-high-priced motorcycles, and so much more. One of the "more" portions is the company's racing arm, which was part of a host of racing series around the world and across the brands.
We're still waiting to see if Bajaj keeps KTM in MotoGP, and we don't know what will occur with Husqvarna, but we now know that GasGas won't be continuing with any factory trials race teams going forward. And that's only a few days after it announced that GasGas would be moving production from Spain to Austria.
According to GasGas' press release, efffective basically immediately, though it states starting in 2026, the brand will no longer "participate with a Factory Team in the World and Spanish Trial Championships. This strategic shift will allow us to focus more closely on enhancing our industrial and commercial operations."
And to GasGas' credit, the company states that this all has to do with KTM's restructuring after its salvation, stating, " As part of the global restructuring process promoted by the KTM AG Group—of which GASGAS is an active member," adding, "This decision reflects the need to concentrate all financial and human resources on core business priorities, on the development and consolidation of the brand's production and commercial activity, key elements for its future."
Racing, if you don't know, is an expensive enterprise. From amateurs to factory-sponsored teams or factory teams themselves, it'll cost you two arms and a leg. And with KTM's debts mounting, of which many still need to be paid, and Bajaj stepping in to hopefully stop the hemmoraging, racing ain't a priority in righting the ship. That's why you've seen the companies throughout the conglomerate take steps away from race series, and why there's still a question mark surrounding its MotoGP entrant, even when you have KTM's current CEO hyping the new engine.
Hell, they don't even know if privateer Tech3 MotoGP team is going to use that engine come the regulation changes still.
GasGas goes on to state, "The new strategy does not mean a total withdrawal from racing activity: GASGAS will maintain its presence in the competition arena through direct support for privateers and racing teams who support the brand." But, and it's a big but, "This will be done through various forms of collaboration and technical support." What that looks like is anyone's guess, though. I am sure that more of these dominoes will continue to fall as Bajaj further looks into KTM's books.
