What you need to Know: Minnesota Bans Kids Motorcycles
Effective January 1st, 2025, Minnesota has banned the sale of items made with the chemical PFAS. The ban covers 11 areas including things made for children which include motorcycles and ATVs.
Minnesota has banned any juvenile products, except electronics, that intentionally contain PFAS. PFAS is linked to an increased risk for cancer and other health troubles.
PFAS is used in motorcycles for heat-resistance and water-proofing.
The state is concerned about when motorcycles end up in landfills. With 98 of 101 landfills leaking into the ground water they want to protect the environment.
My Take: This is very similar to the attempt to, nationwide, ban kids’ motorcycles that contain lead. Motorcycle advocates and lobby groups were able to reverse that law, but I think it will be a lot harder to reverse this new state law.
Minnesota is a very liberal and a bit of a draconian state. During COVID the police would shoot people with paint guns for sitting on their own porches. Because of how this state works, the manufacturers will need to change what they use to make their products or not sell them.
I expect there to be a sales boom for dealerships that are close the state boarder.
Lastly, the ban excludes electronics. Really, I am sure that there are lot more electronics making it to landfills than motorcycles.
What you need to know: KTM struggles are greater than first thought.
As noted in a previous post KTM has over $3 billion in debt and has filed to undergo “self-restructuring” to get thing righted. Self-restructuring is a 90-day process that expires at the end of February 2025. If they are unable to get to an acceptable solution, they may go into formal bankruptcy. CitiBank has been brought in to help with bankruptcy if needed, not a good sign.
Since that last news drop things have not improved. For example:
KTM has not made payroll for 2+ months, after promising to pay at least 90% of what was due.
Employees are looking for new jobs
European production has been greatly reduced.
* Mid-range motorcycle production has moved to China (home of KTM partner CF Moto) and India, with Bajaj Auto. By the way, Bajaj owns 49% of KTM.
* Bajai owns the Pierer Mobility which, in turn, owns KTM AG. Bajaj builds many of KTM and Husqvarna’s small-displacement street motorcycles like the 390 Adventure and Duke, and Vitpilen and Svartpilen 401s.
* CF Moto builds the 790 and 890 engines under contract for KTM. KTM is CFMoto’s exclusive motorcycle distributor in Europe.
KTM is selling its majority stake of 50.1% in MV Agusta, effectively dropping it from their portfolio.
The Financial Market Authority (FMA) in Austria has launched an investigation into KTM’s workings. They are probing whether the parent company, Pierer Mobility, has complied with disclosure regulations.
IN RACING: KTM still claims it will provide race teams this year. Nonetheless there are some major developments in this area:
KTM is not renewing their MotoGP contract when it expires at the end of this season. Which means there will be no KTM in MotoGP for 2026.
They have already stopped development and testing of their MotoGP bikes. Jeremy McWilliams, KTM’s long-term test rider, has been let go.
No Gas Gas motorcycles for MotoGP 2025. The “former” Gas Gas team has been rebranded as factory KTM.
Looks like Husqvarna has been removed from the MotoGP grid as well.
KTM has cut its global racing program by 12 riders. I was not able to identify which teams were cut. Each rider typically requires support from two to four employees, as well as trucks and other equipment, so some savings.
KTM is no longer the title sponsor for the Hard Enduro World Championship.
My Take: KTM may start the MotoGP racing season, but they may not finish the season.
American Supercross is first up and starts in January. I will not be surprised if Gas Gas and Husky factory teams do not make it to the start line and if they do, they may not make it to the end.
MotoGP racing is hiding behind KTM Switzerland, a separate company, so there is a chance they might start the season, but I doubt they make it to the end of the season. Also, I do not see Moto3 or Moto2 teams making the start line.
I expect that Husqvarna will be sold, as they make a lot more then motorcycles. I doubt that Gas Gas will survive as a brand when all is said and done unless it sold to Bajaj or the Chinese parent of CF Moto.
I think that there is a good chance that KTM will sell their majority stake to Bajaj to save the company. At which point I would expect European production to be greatly reduced and then phased out and replaced with Bajaj production efforts.
CitiBank is not there to save the company, they are there to make the best deal for the debt holders. If KTM does not come up with a valid plan to fix this miss, CitiBank, I expect, will sell off KTM part by part, until $3 Billion in debts are serviced. Some things to consider:
This is going to impact other manufacturers if/when a flood of KTM motorcycle backlog is sold off cheap.
If KTM closes racing it is possible that we will never see some of their riders race again.
Things are not looking good for KTM right now.
I JUST WANT 2 RIDE!! 