KTM, behind the scenes of the storm, maintained cathedral silence for three weeks: no press releases on the bankruptcy, no interviews, but a showcase of new models for 2025, ranging from the Supermoto SMC 125 and 390 R to the revisited 790 Duke, without forgetting the 1390 Super Adventure. But on the evening of January 23, economic news surrounding the Pierer Group broke out like a storm. This is not surprising, because this Friday, January 24, the second meeting of creditors of the financially wrecked company KTM AG and its subsidiaries KTM Forschungs-& Entwicklung-GmbH and KTM Components will be held in Ried im Innkreis , like a court of the future.
The boss of KTM,
Piererhas 68 years, has been the target of heavy criticism from around 5,400 creditorsincluding banks, suppliers and employees, like a general surrounded by his enemies. In response, Pierer decided to withdraw from the front, appointing Gottfried Neumeister47, as new CEO and co-member of the board of directors on September 1, 2024, after the departure of the CFO
Viktor Sigl. However, Pierer
will remain involved in the restructuring as co-CEO.
The first preliminary figures for the 2024 financial year confirmed the scale of the crisis at KTM. The company announced a dramatic drop in revenue, from 2.7 billion euros in 2023 to 1.9 billion euros. This decline is accompanied by an expected loss of
300 million euroswhile net debt continues to climb. The company was also forced to reduce production to 230 000 motosa quarter less than in 2023, and sales to dealers have
dropped by 21%reaching 292,500 units.
The group also had to reduce its inventories, but what seems to have partially offset the drop in sales are significant discounts granted by dealers.
KTM, Husqvarna, GasGas and even MV Agusta were all affected by massive discountswhich boosted sales but at the cost of reduced profitability.
It will take a radical change in strategy at KTM to navigate through this crisis
The restructuring also had human consequences, with more than 1,800 employees laid off during 2024. This illustrates the seriousness of the situation, as KTM seeks to cut costs and repair its finances. However, despite these difficulties, demand remains strong, with
268,000 motorcycles sold to end customers, almost the same figure as in 2023.
KTM stands at a decisive crossroads. According to recent information, Pierer Mobility could obtain crucial financial support from several investors, including the Indian manufacturer Bajaja key player in the history of KTMand a Hong Kong financial fund. Stephan Zöchlingdirector of the exhaust manufacturer Remusalso seems to play a determining role in this recovery, according to motorrad. Zöchling would have injected 65 million euros at the end of 2023, thus saving KTM of immediate closure, and he would now be ready to invest until
600 million eurosin partnership with
Bajajto restructure the company.
Zöchling's ultimate goal may be to take control of KTMwhich would mark a major transformation in the group's structure. This maneuver could see Zöchling become a central player in the direction of KTM in the future.
The future of KTM remains uncertain. With still approximately 600 million euros to be raised to cover the company's liabilitiesthe coming weeks and months will be crucial. Upcoming events, including the extraordinary general meeting of Pierer Mobilityshould shed more light on the future of the brand and the identity of its new owner or manager. The situation is still fluid, and although the manufacturer has gone through major turbulence, the potential support of investors could allow it to
KTM to recover, but it will take a radical change in strategy to navigate through this crisis.
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