KTM greatly increased their sales to 4000 vehicles in a year. Those are roughly McLaren volumes but McLaren starts at $200K each. Either mva needs to increase prices a lot (which I doubt the market would bear) or 10x volume (which seems hard for them to do).
Here's what I don't understand. At last count, they had something like 265,000 unsold inventory sitting around. Shouldn't they be offering insane incentives to people to buy from that pool? I don't know what the average price is, but if their debt is $3,000,000,000, they could pay it all off if the average selling price was $11,320, or a big chunk of it if the average is less.. And that's not including ongoing and future income from accessories, parts, etc.
Here's what I don't understand. At last count, they had something like 265,000 unsold inventory sitting around. Shouldn't they be offering insane incentives to people to buy from that pool? I don't know what the average price is, but if their debt is $3,000,000,000, they could pay it all off if the average selling price was $11,320, or a big chunk of it if the average is less.. And that's not including ongoing and future income from accessories, parts, etc.
If KTM were to go bankrupt, should I sell my bike quickly and switch to a brand like Yamaha or Honda? At the end of the day, it’s all about parts availability, and I’m not just talking about aftermarket options but OEM parts that only the manufacturer can provide. Some suppliers, including those that make swingarms and other castings for KTM, have already declared insolvency. If someone buys KTM’s assets, how long would it take for parts to start flowing again, and how would local distribution be affected? If the parent company goes under, does that mean KTM Canada would close as well? What are your thoughts on the situation?
Here's what I don't understand. At last count, they had something like 265,000 unsold inventory sitting around. Shouldn't they be offering insane incentives to people to buy from that pool? I don't know what the average price is, but if their debt is $3,000,000,000, they could pay it all off if the average selling price was $11,320, or a big chunk of it if the average is less.. And that's not including ongoing and future income from accessories, parts, etc.
The likely want to hold that inventory until the find out what kind of haircut their creditors are willing to take. Inventory is their “money in the bank” should they get a chance to reorganize. Liquidating inventory buys nothing today.
Not a new strategy for companies seeking bankruptcy protection.
If things go bad 2 with creditors it will be a blowout sale. I remember a few years back, MV sold a bunch of inventory thru Racer5, could have picked up a new Brute for $6-7k.
I think it's because long-term discounts become the new MSRP.
It impacts the sale price of newer 2025 models coming through the doors. If you put a time-limit on the sale of NOS, it lights a fire under potential buyer's behinds. What some manufacturers have done is put a one month time-limit on the sale, wait a month or two and then conduct another sale for another 30 days.
I talked to a salesguy over Xmas and he said the manufacturer's discounts ended at the end of the year, but would probably pop up again in March if there was remaining excess unsold inventory. That way they could probably better gauge how deep a discount to give at that time.
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.