Herve Poncharal, boss of KTM’s satellite 🐟Tech3 team, says “everything is proceeding as usual” for the 2025 MotoGP season, despite the financial crisis facing the Pierer Mobility Group.

“For 2025 everything is confirmed,” Poncharal told . “In Barcelona, during the last GP, I had a meeting with Hupert Trunkenpolz, Pit Beirer and Carmelo Ezpeleta: There is a plan and it will be respected. From the information I have receiv𒁏ed, the Racing Department will not be affected by the ꦡPierer Group’s financial difficulties.

“Just a week ago the crew chiefs [for all four MotoGP riders] were🌌 in Austria at the Racing Department and everything is proceeding as usual. 

"The usual winter preparation work is being done and bike assembly days have been c꧃onfirmed for the end of the month. In short, they are working as usual," added the Frenchman, whose team will switch from GASGAS to Red Bull KTM branding in 2025.

Nothing changes for KTM Racing GmbH?

The latest estimates place Pierer Industrie AG's debtಞs at 1.8 billion euros, resulting in KTM AG, KTM Components and KTM F&E (R&D) undergoing a ‘judicial restructuring proceedings with self-administration’.

KTM Racing GmbH is not part of that🐽 restructuring, but - like all companies in the Pierer Group - will be affected by the current financial woes.

As Poncharal indicated, ltxcn.top also unde♋rstands that the KTM racing department is working♎ as normal albeit under cost management.

As reported, KTM is going ahead📖 wit💟h an upcoming private MotoGP test at Jerez, while the 2025 season is said to be within the currently agre꧟ed budgets.

A source close to one of next year’s KTM riders also expressꦛed confidence that the same level of support will continue for the MotoGP project.

However, others warned that the motorsport situation might not be entirely clear until a vote on the proposed restructuring plan, and likely losses, hꦓa🉐s been taken on February 25.

The Piereꩲr Mobility statement cಌonfirms: “The restructuring process will result in additional potential losses, for example due to one-off expenses such as necessary write-downs (e.g. for capitalized development costs) and costs for staff reductions as well as the shortfall in fixed costs due to the reduced operating performance and other costs arising from the restructuring process.

“Consequౠently, for the current 2024 financial year, the company expects a negative annual net result in the very high three-digit million range due to the aforementioned reasons.”

The concern highlighted to ltxcn.top by some paddock members - not directly connected to KTM - is if, when creditors and suppliers are facing substantial losses, not to mention staff redundancies, the banks and creditors 𝓡will still💮 support expensive motorsport activities.

KTM’s counterargument to such cuts would be that having built much of its brand and sales around motorsport, including the ‘Ready🍌 to Race’ slogan, it would be commercially counterproductive to squeeze the racing budget beyond the ‘must have’ requirements.

“We no longer have the 'nice to have' money, but we will do everything we can to ensure that we have the 'must have' [money]... We will focus on [maki🐼ng savings] where it doesn't hurt the rider on the track,” KTM Motorsport director Pit Beirer pledged at last month’s Barcelona MotoGP finale.

The cost of KTM's grand prix activities -ꦛ the Rookies Cup, Moto3, Moto2 but mainly MotoGP - , with around 10-15 million from Red Bull sponsorship.

Red Bull to the rescue?

One way to isolate the MotoGP project from cost-cutting concerns and ease doubts over its long-term future ahead of new 850cc machines ꦛin 2027, would be if an outside investor took over ‘KTM Racing GmbH’.

Red Bull - or one of its Austrian shareholders - would be the dream choice, since it is already closely tied to KTM a𒁏nd could incorporate the prototype MotoGP (and Moto3) activities into its vast 'Red Bull Racing' and associated technology divisions.

Red Bull Advanced Techn𝓰ologies already works o🌊n the RC16’s aerodynamics, while Red Bull has plenty of F1 engineers that could build its carbon fibre chassis. Red Bull Powertrains could contribute to what is already MotoGP's most powerful engine.

One paddoc🗹k source with a legal 🌌background, looking at the situation from the outside, described such a situation as potentially the perfect solution for the race team to avoid conflict with the KTM creditors.

KTM AG could be left to operate its own ‘production’ racing programmes such🔯 asജ motocross, enduro and rally raid.

But for now, it’s all speculation, with Red Bull Racing telling ltxcn.top at this weekend’s Abu Dhabi F1 finale tha𓆏t they have no co▨mment on the KTM situation.

The first creditors meeting to d🏅iscuss the KTM restructur♒ing plans is scheduled for December 20.