KTM Now Has Its Own Dieselgate Scandal. Company "Firmly" Denies It

There's new reporting that KTM, the Austrian motorcycling giant that was recently saved from complete bankruptcy, has been cheating with its emissions in the same vein as how Volkswagen was prior to the Dieselgate scandal.

According to France's Le Monde, and in association with the outlets of El Pais, Germany's Der Spiegel, L'Espresso, Centre for Climate Reporting, and a number of other organizations, the investigation and subsequent reporting all began after one salesperson let it slip that KTM's off-the-shelf bikes would pass emissions testing, but that they had instructions to immediately remove the restrictors after passing or the motorcycles wouldn't work.

"All our motorcycles come restricted as standard," relayed the salesperson according to Le Monde, adding, "but we have to remove the restriction for the engine to work. KTM delivers them with a different exhaust system: We immediately change the entire configuration. The restricted mode is just to pass European tests and anti-pollution standards."

The subsequent investigation, as told by Le Monde, involved a multi-month reporting operation, sometimes involving undercover reporters, visiting dozens of dealerships across six different countries, including France, Germany, Spain, Italy, Austria, and the U.K., and found that it was common practice for dealerships to remove the emissions restrictors on enduro motorcycles that had been homologated for road use. 

"Our investigation, with visits to more than a dozen KTM dealerships across six European countries (France, Germany, Austria, Spain, Italy and the United Kingdom), found that the manufacturer set up a widespread system for derestricting enduro-type motorcycles," states Le Monde, adding, "While the derestricting took place at the dealerships, the evidence collected showed that it was facilitated by KTM. We were unable to determine how long these practices have been taking place."

To break down what's reportedly occurring, KTM's enduro motorcycles leave the factory with emissions restrictions, i.e., specific exhausts, fuel and air flow restrictors, or other methods of controlling just how much carbon dioxide is emitted from them. But the report suggests that while they can run for emissions testing, you can't really ride them directly from the factory, as they'll bog down, or otherwise not work all that well. The accusation is that KTM's workaround is a directive straight from Mattighofen, KTM's HQ.

"Every dealership we visited in Europe, without exception, confirmed that before being put on the market, enduro motorcycles were systematically reconfigured to increase their engine power. All described the same method for circumventing European regulatory standards, using identical language," reports Le Monde.  Identical language tends to imply a concerted effort from one central location, i.e.,  Mattighofen.

KTM's brass have issued a statement, however, denying that such a directive exists. 

"KTM AG firmly rejects the allegations made in recent media reports that KTM is placing illegal motorcycles on the market," starts the message, adding, "The KTM Group sells its motorcycles exclusively in compliance with applicable European regulations."However, read a little further in the statement provided, and that's where things get interesting, as the brand seemingly admits that the reporting is accurate.

"The reporting is based on a fundamental misunderstanding: At their core, enduro models are sports machines that, in their homologated delivery condition, are also permitted to be ridden on public roads...All KTM-, Husqvarna-, and GASGAS-branded enduro models leave our factory exclusively in a road-legal, homologated condition," states KTM.

But here's the kicker.

"At the customer’s request, these machines can be configured by the authorized dealer for competition and off-road use after purchase. Buyers of our enduro machines are expressly informed that road approval expires upon conversion for competition use, and that the vehicle may no longer be used on public roads."

So KTM admits that it can do this, but denies that it instructed its dealerships across the continent to remove the devices immediately after passing local emissions testing. And it states that it, reportedly, instructs dealerships to tell the customer that these motorcycles are no longer capable of being used as road-legal machines. Again, that's according to KTM. 

Local authorities are now probing the company, along with dealerships around Europe, as Le Monde and its consortium of outlets' reporting has risen to that level. Whether this goes full Dieselgate is anyone's guess. But the new scandal comes on the heels of KTM's already rocky recent past, as it's only just emerging from its insolvency issues due to gross financial mismanagement, having been saved at the 11th hour by the Indian motorcycling giant, Bajaj. It's also still trying to get out from under the absolutely monumental stockpile of new-old motorcycles sitting on dealership lots. 

As to whether KTM's scandal grows here in the US is unlikely, given the current administration, and our nation's quite lax emissions laws, though you can't count California's ARB out. We'll bring you more to this breaking story as we get it, so stay tuned. 

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