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KTM - The History

KTM - The History

Nov 27

  • News

KTM's origins date back to 1934, when Hans Trunkenpolz, an Austrian engineer, founded Kraftfahrzeug Trunkenpolz Mattighofen in Mattighofen, Austria. However, the name was not registered. The company started out as a repair shop and dealership for DKW motorcycles and Opel cars but later incorporated the production of motorcycles.

KTM experienced great success after beginning mass production of its first motorcycle, the R100, in 1953. This was after businessman Ernst Kronreif acquired a major stake in the start-up, renaming and registering the business to Kronreif & Trunkenpolz Mattighofen.

After more than three decades of triumph in the motorcycle industry, KTM's fortunes declined in the 1980s as sales of mopeds and scooters declined dramatically. The company was unable to recover and was forced to halt production under increasing financial pressure. This was followed by a take-over by creditors in 1991 and the company later split into four units (motorcycles, radiators, bicycles and tooling divisions).

However, this was not the end for the motorcycle icon. In 1992, KTM Sportmotorcycle GmbH, the motorcycle division, was acquired by KTM Motorrad GmbH success then followed quickly on its heels, although now, some 33 years late, KTM are again going through the same procress as in 1991 and we as sports lovers and those that respect what KTM have done for our sport and many other sports, lets hope they can once again recover.

1934

Hans Trunkenpolz, an Austrian engineer, founded a repair and car dealership referred to as Kraftfahrzeug Trunkenpolz Mattighofen.

1937

Hans Trunkenpolz commenced selling DKW motorcycles; Opel cars were added to the company's inventory in the year that followed (1938). The company was unregistered at this time.

1939 to 1945

During World War II, his wife cared for the business, which was succeeding majorly as a result of diesel engine repairs. As demand for repair works fell sharply after the war ended, Hans Trunkenpolz started thinking about manufacturing his own motorcycles with an eye on increasing production.

1951

Using Rotax engines made by Fichtel & Sachs, Hans Trunkenpolz produced his first motorcycle prototype, the R100.

1953

Mass production of the R100 commenced two years later with 20 employees building three motorcycles per day using parts produced in-house except for the Rotax engines.

Ernst Kronreif, an entrepreneur, purchased a majority stake in the company after which it was renamed Kronreif & Trunkenpolz Mattighofen and registered as such.

1954

The company released the R125 Tourist motorcycle, followed by the Grand Tourist and the Mirabell scooter in 1955. The company also won its first racing title the same year, when it was victorious in the Austrian 125cc national championship.

1956

KTM debuted at the International Six Days Trials (a competition involving off-road motorcycle racing) and won a gold medal with Egon Dornauer at the helm.

1957

KTM began producing its first sports motorcycles, the Trophy 125cc and Mecky mopeds.

1960 to 1963

In 1960, KTM launched Ponny I, followed by Ponny II (1962) and Comet in 1963. In the 1960s, KTM also entered into bicycle production.

Following Ernst Kronreif's death in 1960, Hans Trunkenpolz suffered a heart attack and died two years later in 1962. His son Erich Trunkenpolz took control of the company's management.

1971

The company had expanded to include 400 employees; four decades after its founding, KTM was offering 42 different models and produced motors for racing teams. Additionally, through the 1970s and 80s, the company developed and produced engines and radiators for European car manufacturers.

1978

KTM's US subsidiary, KTM North America Inc., was founded in Lorain, Ohio.

1980

The company's name was changed to KTM Motor-Fahrzeugbau KG.

1981

KTM had almost 700 employees and a turnover of 750 million Schillings. Approximately 76% of that sum came from international business at that time.

1988

Scooter and moped sales plummeted in the 1980s. Unable to turn the company around, production was halted.

1990

GIT Trust Holding, an Austrian Investment trust managed by Austrian politician Josef Taus acquired a 51% interest in the company. Attempts to turn the indebted company around proved unsuccessful.

1991

A consortium of creditor banks assumed control of KTM as it continued to be plagued by heavy debt.

1992

KTM Sportmotorcycle GmbH (the motorcycles division),KTM Kühler GmbH (the radiators division), KTM Fahrrad GmbH (the bicycles division), and KTM Werkzeugbau GmbH (the tooling division) were spun off from KTM.

KTM Sportmotorcycle GmbH, at this time owned by KTM Motorradholding GmbH (a subsidiary of Cross Holding), was also formed in the same year. Later, the company took control of the tooling division—KTM Werkzeugbau.

Over the next several years, while increasing production and turnover and investing in new facilities, Cross Industries sponsored and participated in a series of sporting events. This was all under the guidance of Stefan Pierer (KTM's managing director and Cross Industries owner). The company also restructured several times as it changed hands.

1994

KTM began production of its Duke line of road bikes.

1995

KTM Motorradholding GmbH acquired Husaberg AB of Sweden and the Dutch enterprise, White Power Suspension to expand its product lineup.

1996

The company introduced its signature orange color to motocross models.

1997

KTM launched liquid-cooled Supermoto and Adventure models.

2007

Indian motorcycle manufacturer Bajaj Auto purchased a 14.5 percent interest in KTM Power Sports AG. KTM also debuted the X-Bow sports car in the same year.

2012

KTM Motorradholding GmbH restructured and became known as KTM AG.

2013

By this year, Bajaj Auto had increased its take in KTM to 47.97 percent. Later that year, KTM acquired Husqvarna Motorcycles from its previous owner, BMW Motorrad AG, and re-integrated the Husaberg brand. The brand had spun off from Husqvarna when the latter was sold to the Italian company Cagiva in the 1990s.

2015

Revenues reached €1 billion and the company had 2515 employees by the end of the year. Of its four predecessor companies, three divisions had rejoined the KTM Group. These included the KTM Sportmotorcycle GmbH, the KTM Kühler GmbH (currently referred to as WP Radiators) and KTM Werkzeugbau GmbH. The fourth company—KTM Fahrrad GmbH (KTM Bike Industries)—has retained its status as an independent enterprise owned by investors from China.

2021

Bajaj Auto sold a 46.5 percent stake in KTM to Pierer Mobility AG in exchange for 49 percent ownership of Pierer Mobility.

2024

KTM AG, a wholly owned subsidiary of PIERER Mobility AG, will apply for the initiation of judicial restructuring proceedings with self-administration (Sanierungsverfahren unter Eigenverwaltung) on November 29, 2024. The financing requirements of KTM AG currently amount to a high three-digit million figure. The management now does not expect to be able to secure the necessary interim financing in time.


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