KTM - Financial Structure

Financial Structure

In 1992 the company became insolvent and was divided into three companies:

• KTM Sportmotorcycles GmbH, was renamed 1994 to KTM Sportmotorcycles AG
• KTM Fahrrad GmbH (Bicycles)
• KTM Kühler GmbH (Radiators)

In the fiscal or business year ending in 2005, KTM Sportmotocycles AG delivered 80,000 motorcycles worldwide and began a partnership with Polaris Industries. Under the terms of the agreement, the two companies will help one another to extend their brands into the other's home market, KTM extending their reach into North America, and Polaris extending into Europe. This partnership is a two year trial arrangement, at the end of which both parties are giving the option of merging the two companies into one. In 2006, KTM announced that the partnership with Polaris had been ended early, and would instead only supply their 450 cc and 510 cc RFS engines to the ATV manufacturer.

In November 2007, Indian two-wheeler manufacturer Bajaj Auto acquired 14.5% stake in KTM Power Sports AG (parent company of KTM Sportmotorcycles AG). The two companies have signed a cooperation deal, by which KTM will provide the know-how for joint development of the water-cooled 4-stroke 125 cc and 250 cc engines, and Bajaj will take over the distribution of KTM products in India and some other Southeast Asian nations. In December 2007, Bajaj increased their stake to more than 20%. Bajaj increased its share to 38.09% in November 2010. As of March 2012 Bajaj Auto holds a 47% stake.

The Swedish motorcycle company Husaberg AB and Dutch WP Suspension are now subsidiaries of the KTM Group.