KTM’s MotoGP exit set to take place in 2026 amid insolvency proceedings

KTM could leave MotoGP and its support classes in 2026, as the Austrian manufacturer undergoes a wide-scale restructure under administration.

It was on 20 December that a potential exit from MotoGP was publicly mentioned for the first time. In a report presented by Alpenlandischer Kreditorenverband (AKV), following a meeting with the creditors in Austria, it was stated that "in order to reduce costs, the exit from MotoGP Moto3/Moto2 is planned".

Now, Austrian newspaper Der Standard has reported that "KTM wants to say goodbye to motorsport, specifically from the MotoGP, Moto3 and Moto2 road racing series, from the 2026 season".

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This could also explain why KTM issued a statement reiterating that it will be racing in MotoGP next year.

The management expects “significant PR damage” in case KTM is forced to terminate its MotoGP programme early, and hence the company does not want to pull out of the championship until 2026.

KTM has valid contracts with its four riders Pedro Acosta, Brad Binder, Maverick Vinales and Enea Bastianini until the end of the 2026 season.

The Austrian company also has a firm deal with MotoGP’s promoter Dorna until the end of the current rules cycle in the same year.

Pedro Acosta, Red Bull KTM Factory Racing

Photo by: Gold and Goose / Motorsport Images

The motorsport department in Munderfing is said to be in talks with potential investors about its future. More details could emerge in a court hearing on 25 February 2025, when the restructuring plan for KTM AG and its two subsidiaries will be voted on. 

Motorsport is a major expenditure for the flagship firm of Pierer Mobility Group, having spent €95million on racing in 2023.

KTM has been under self-administration since 29 November and its parent company recently submitted a restructuring plan in accordance with the Restructuring Ordinance (ReO) to the Wels Regional Court. It involves around €250million, which Pierer Industrie AG wants to pay over two years.

If the claims fall due early, the company could run into payment difficulties. The creditors have until 31 January to register their claim.

The restructuring plan under self-administration of KTM AG and two subsidiaries will be voted on 25 February 2025 at the Ried im Innkreis Regional Court. Up to €3billion are at stake.

There was good news for KTM’s workforce between Christmas and New Year, with broadcaster ORF reporting that they will receive their December wages on time. That means employees will be paid at the end of the month, while the workers will get their salaries in the middle of January.

The payment of outstanding November wages and the Christmas bonus is to be processed in January via the insolvency wage fund. Around 3,600 employees in Upper Austria are affected by the insolvency.