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KTM to cut production for its North American off-road market

The weakened value of the U.S. dollar plus a softer U.S. off-road sector has led KTM to decide to cut its 2009 production of off-road vehicles by 30 percent for its North American market.

Jon-Erik Burleson, KTM North Americas president, told Powersports Business that he announced the production cutback at the manufacturer's recent national dealer meeting. However, Burleson also said he expects the company's on-road business, including its recently introduced superbike, to grow next year and the manufacturer continues to see market share growth in its all-important off-road segments.

The production cutback, Burleson said, is an effort by KTM to reduce dealer inventory and strengthen the brand's premium image while operating in a challenging environment.

“It’s going to be a strong euro-weak dollar environment for awhile so we need to substantiate the value of our motorcycles and our brand and build a business plan that allows us to be profitable and allows our dealers to be profitable,” Burleson said.

Find out more about KTM’s plans, including its desire to strengthen its on-road marketing, in an upcoming issue of Powersports Business.

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