KTM is currently in the middle of a crisis. In recent months, the brand had already undertaken some actions to get its head above water. The brand had thus made numerous layoffs and drastically reduced the size of its board of directors. The continued declines in sales, however, led its managers to reduce production costs even further.
A set of actions was not enough. To avoid insolvency, KTM, wholly owned by Pierer Mobility AG, needs a significant amount of money to fulfill its commitments to its creditors. A sum which “amounts to three figures when speaking of millions”and that KTM management “don't expect now to be able to get in on time.” »
This Tuesday, November 26, the group therefore announced that it was opening major legal restructuring procedures. They will aim, among other things, to allow KTM to continue to manage its assets under supervision, while reorganizing with its creditors over a period of 90 days. The aim is to ensure KTM's long-term survival, by creating a solid foundation to emerge stronger from the procedure.
Please note that these procedures will only impact the group's parent company, KTM AG, and two other subsidiaries. Others, and in particular all sales companies, will not be affected. KTM's competition programs, such as MotoGP, are not currently under threat either.
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“The pit stop for the future” at KTM
With the brand having strong ties to Red Bull, one might think that the energy drink is preparing to save another Austrian giant. However, this rumor was already denied by the group earlier in the week. “In response to information in today's newspaper, Pierer Mobility clarifies that there are no discussions about Mark Mateschitz joining Pierer Mobility and KTM. »
Despite the crisis, Stefan Pierer, CEO of KTM, reaffirmed his determination to get the brand out of this situation. The opportunity to recall the trust he has in his closest associate. Since September 2024, Gottfried Neumeister has become co-CEO of the company.
“Over the past three decades, we have become Europe's largest motorcycle manufacturer, he recalls in a press release published this Tuesday. We inspire millions of motorcyclists around the world with our products. Now we make a pit stop for the future. The KTM brand is my life's work. I fight for her.
Gottfried Neumeister brought impressive experience. But also lots of fresh air, he continues. He contributed significantly to the handling of the current situation. I am confident that with me he will lead the company on the path to success. »
The restructuring process will lead to additional losses for KTM. Costs linked to staff reduction, or even to the process itself. The company therefore expects “to a negative annual net result” over the year 2024. A deficit which will be located in “the very wide range of three-digit millions.”
