The company formed KTM Financial Services GmbH
(KTMFS) at the end of 2008, in order to offer finance and leasing
for dealerships and direct sales. Products have been developed in
association with consultancy Lease Consult GmbH. KTMFS also leases
maintenance equipment and machine tools to dealers and service
partners.
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KTMFS operates in KTM’s home markets of
Austria, Germany and Switzerland, although it is considering
offering leasing to UK customers.
A KTM spokesperson said the company was keen
to get active in a “more and more significant” sector, and noted a
“considerable expansion” of business for KTMFS after its first full
quarter of leasing.
The move comes in the wake of a predicted 25
percent production downturn for the manufacturer as a result of
some 300 job losses at its factories. Half of KTM’s remaining
workforce will work on a part-time basis from May until August.
Fred Crawley
• KTM was originally set up as a
repair business in 1934, opening its first factory in 1953. It now
operates in 15 European territories, as well as in Asia and the
Americas. Company head Stefan Pierer recently petitioned the
European Commission to provide financial aid to Europe’s motorcycle
producers, after KTM posted Q1 results showing a 14 percent
year-on-year drop in European sales to a value of €80.3 million.
The company posted a net loss of €28 million at the end of Q1, down
from a profit of €15 million a year earlier.
