Get ad-free access for just $10/year. Join today!

KTM Freezes Production (Again), Can-Am Recalls 474 Pulse & Origin Electric Models

...and ZERO has Reservation Deadline for XB & XE Models

A view of a KTM motorcycle.
A view of a KTM motorcycle. Media sourced from KTM.

Our good industry just doesn’t let up, and the week’s news shows it: 

  • KTM’s only been back at making bikes in their production facility for about six weeks, and they’re already needing to halt production due to a lack of parts. 
  • EV bike brand ZERO Motorcycles has officially revealed that May 18th will be the reservation date for their new models, the XB and XE series. 
  • Unfortunately, 474 units of Can-Am’s two new EV beauties are being recalled due to the bike’s battery housing. 

Let’s start with Team Orange’s update, shall we?

Industry Insider: KTM Halts Production Due to “Serious Supply Chain Problems

A view of a KTM motorcycle.
A view of a KTM motorcycle. Media sourced from KTM.

“There’s Not Enough Cash to Pay for Parts.”

Just weeks after restarting production in Mattighofen, our beloved Team Orange has once again been forced to freeze production – and we’re just about as unhappy about it as you are. 

According to news from ADVPulse, the production freeze is set to last until at least the end of July, thanks in part to “serious supply chain problems. ” The fine print associated with this new tidbit points to a general lack of money to provide parts for continued production, highlighted by the fact that KTM’s new CEO, Gottfried Neumeister, gave the production freeze update to employees via video message. 

Apparently, KTM’s creditors had previously agreed to a 30% repayment plan that was entirely reliant on Pierer Mobility raising €600 million by May 23rd (the deadline of the Restructuring Plan). This agreement allowed for a brief restart of production using remaining inventory, and from what we’re told, only about 4,200 assembled motorcycles were able to be completed due to “the inability to order new parts during insolvency.” 

Under this new movement, wait times for critical parts will likely take more than 20 weeks. The wait is exacerbated by vendors now requiring upfront payment before shipping components due to the company’s financial vulnerabilities. 

We were previously waiting on a special shareholder meeting on April 25th for funding proposals, but that was canceled because, and we quote, “the measures…cannot be implemented under the conditions required by law and within the specified timeframe.” 

As Pierer himself warned, “Without the necessary liquidity, [the ability to continue operating normally] cannot be ensured…” – the stark reality here is that failure to secure the required €600 million could once again put KTM in danger of bankruptcy, and alternative financing options may not be scrambled together in time for May 23rd.

To date, almost 830 jobs have been lost, and further job losses are expected if the company fails to stabilize; to mitigate this, KTM’s damage control includes reducing work hours for around 3,000 Austrian employees.

A reminder that all of this movement includes Stefan Pierer stepping down as CEO of KTM, and MV Agusta being officially returned to the full ownership of the Sardarov family (via MV Agusta), proving that saving money and minimizing company complexities will continue to inspire Pierer’s decisions as we approach that Restructuring Plan deadline of May 23 (via MCN). 

Bottom line, we’re hopeful that the company’s tight budget will eventually manifest into a recovery stage where riders can once again enjoy Katooming about the local topography. 

For the full details on KTM’s ongoing production halt and financial struggles, be sure to read the report on ADVPulse:

Electric Everything: ZERO Motorcycles Reveals Reservation Opening Date for XB, XE models

A view of ZERO's electric motorcycle.
A view of ZERO’s electric motorcycle. Media sourced from ZERO Motorcycles.

“… For US Markets Only”

ZERO Motorcycles is making moves to keep their lineups accessible to riders in the United States – and that starts with publishing the reservation date of their newest machines, the XB and XE!

According to Zero’s recent press release, the EV bike brand is offering a limited-time window for what we’re going to call “pre-spike pricing:” From now until May 18th of this year, riders can place reservations for the XB ($4,195) and XE ($6,495) before any price adjustments take effect after May 18th. 

The price flux in the XB and XE are a direct result of ever-shifting global economic decisions (cough, tariffs, cough), so naturally, this offer is only available to riders and customers who would be hit by import fees and reside in ZERO’s home country (the US). 

For those early adopters who already have pre-orders in place, we have a bit of extra good news: ZERO will be honoring the XB and XE’s original pricing, and deliveries for these reservations are still 100% on track for this summer!! 😀

The above also means that any new reservations placed from May 1st to May 18th will have a Fall delivery date, with riders accessing the second batch of bikes to leave ZERO HQ.

Naturally, ZERO Motorcycles CEO Sam Paschel is dedicated to the brand’s decision to put customers first, stating the following in the company’s recent press release:

“Zero Motorcycles remains committed in our mission to deliver industry-leading electric motorcycles while maintaining an accessible price point for consumers around the world. Our customers are at the heart of everything we do. And by honoring prices for early reservation holders – despite the shifting global economy – we’re reinforcing our position as the leader in the electric space and building the future of two-wheel transportation.”   

In short, if you’re in America looking at an electric ride from ZERO, now might be the perfect time to pull the trigger on a reservation and secure that current pricing on ZERO’s XB and XE models. before import fees hit.

For more information on the ZERO XB and XE models and their electric motorcycle lineup, be sure to visit the official ZERO Motorcycles website (model pages listed below).

Total Recall: Can-Am to Repair Battery Housing in EV Range

A view of Can-Am's electric motorcycles.
A view of Can-Am’s electric motorcycles. Media sourced from Can-Am.

Affected Models Include “Pulse” and “Origin”

Can-Am is facing a large recall affecting 474 units and both of their new electric motorcycle models. 

According to content from ADVPulse, Can-Am’s recently-launched Origin and Pulse have been reecalled due to a potential issue affecting their high-voltage battery. The recall impacts units produced between May 2 of 2024 and March 15 of this year, with the National Highway Traffic Safety Administration (NHTSA) citing that the problem lies within a breather valve that may not seal correctly, leading to moisture within the battery. 

No bueno.

Repercussions of this issue – if left untreated – include the following:

  • A loss of drive power
  • Riders potentially stranded
  • Risk of a battery fire, which could occur anytime, veen when the bikes are not in use. 

We’re told that the problem was brought to the company’s attention as far back as March of this year, when an improperly clipped breather valve was discovered during BRP’s own qualification tests. Further sleuthing revealed that the battery housing covers on a number of Pulse and Origin models weren’t thick enough, leading to seal issues. 

If you are in possession of a Pulse or Origin, rest assured that Can-Am’s solution is free of charge and trouble; Dealers will be notified to install a new protection plate equipped with a rubber stopper in order to apply pressure to the breather valve for a better battery housing seal, and if necessary, the breather valve itself will also be replaced. The whole thing is anticipated to only take an hour or so, and with the notification letters mailed out to owners yesterday (May 6), this issue will soon be rectified, pronto. 

Awesome work, Can-Am!

NOTE: Owners with any questions or concerns about the recall can contact BRP customer service directly at 1-888-272-9222. The NHTSA’s Hotline is also open and available at 1-888-327-4236,  and riders can reference the NHTSA’s IS number for this case in the event they have additional questions. Here’s the case number: 25V275

Can-Am’s EV range are currently available at the following price points:

  • Pulse: starting at $13,999 USD (premium “Pulse ’73” trim starts at $15,999 USD)
  • Origin: Starting at $14,499 USD (premium “Origin ’73” starts at $16,499 USD)

For more details on the Can-Am Origin and Pulse recall, be sure to check out the full report on ADVPulse:

*Media sourced from KTM, ZERO Motorcycles’ recent press release, and Can-Am*