It’s the economy.
The cry of every car maker in the world, but it’s come to KTM as a bit of a blow. They were optimistically reckoning on selling 1,000 KTM X-Bows a year, but it looks like that guesstimate was way wide of the target. To date, they’ve only sold 420, and have 80 unsold X-Bows sitting waiting for buyers.
When the X-Bow came to the market in 2007, the original production estimate was for just 100 cars a year. And KTM weren’t even going to make them themselves, but were subbing out the work to Dallara. But buoyed by the initial orders, KTM bit the bullet and built a new factory in Graz to produce up to 1,000 cars a year. They’ve also worked at building their dealer network, and only recently announced that Ferrari dealer Dick Lovat was taking on an X-Bow Franchise.
But the economy has put paid to KTM’s ambitious plans. With a big wodge of stock sitting unsold they’ve had to cut their workforce by 1/3rd and stop production of the X-Bow completely for the time being. Even the UK – which KTM expected to be a big market place for the X-Bow – has only managed to shift 23 cars so far.
KTM appear to be nursing losses of up to €69 million so far this year, which is a bit painful.
Don’t suppose Dick Lovat will be too happy either, especially if part of their franchise deal was to take half a dozen KTMs in to stock.Sorce: Autoblog.nl