Pierer Industrie AG has been in financial difficulties for months, and restructuring proceedings were opened on November 25, 2024. This will also have an impact on Austrians’ sporting commitment.
The shock is deep: in order to avert the impending insolvency of Pierer Industrie AG, European restructuring proceedings were opened. This gives companies at risk of insolvency but not yet insolvent the opportunity to recover economically.
The Pierer Group must submit a restructuring plan by December 27, 2024, which credibly describes how the continued existence of the company is to be secured and what measures will be taken to achieve this.
According to the Credit Protection Association in Austria, an application for a restructuring procedure with self-administration should be submitted. According to Pierer Mobility, KTM AG’s financing needs amount to a high three-digit million amount. At the same time, the subsidiaries KTM Components GmbH and KTM F&E GmbH are also said to be affected. The aim is to sustainably secure the existence of the KTM Group.
Negotiations with major shareholders, banks and possible investors have been underway for months to plug the financial hole. While net debt was still 300 million euros in 2022, it has shot up to 1.5 billion euros this year. The Pierer Mobility share temporarily fell to under 8 euros on November 26th, a year ago it was still over 60.
In view of such reports, the question arises as to the sporting commitment of the Pierer Group, which is prominently represented in several major racing series with its brands KTM, Husqvarna, GASGAS and MV Agusta on- and off-road.
It has been clear since July that Husqvarna is withdrawing from road racing and was initially justified by sharpening its brand profile. But that’s only half the story.
“We started a massive efficiency program in sport a year ago to ensure that it continues,” said Hubert Trunkenpolz, deputy chairman of the Pierer Group, in an exclusive interview with SPEEDWEEK.com. “The focus in sport will again be on the core brand KTM. This alone results in enormous savings potential; when we go off-roading with Husqvarna, especially in America, and everything else is shut down. But at KTM there is still pressure in the tank – the KTM brand is unimaginable without motorsport.”
“Of course we have a responsibility if savings have to be made everywhere, and it also happens in sport,” emphasized the top manager. «Fortunately, we have very good partners, especially Red Bull, who are supporting us not only as sponsors, but as partners to get through this difficult time and to maintain the Red Bull KTM program as much as it is necessary. To anticipate all speculation: We will be racing MotoGP next year and the year after. We have a contract with Dorna that we are fulfilling and that will only happen with the KTM brand. We have to promote the brand, we see sport as the most important marketing tool for the KTM brand, that’s why we do it.”
“We are part of the company,” added KTM Motorsport Director Pit Beirer. «If we have a problem together, then motorsport has to help. It goes without saying that we are now dealing with the costs in motorsport as efficiently as possible and trying to bring sensible savings on board. In order to ultimately have the money to further develop the products to premium standards. This is our foundation for motorsport and the entire company, that we build the best motorcycles. This is additional pressure in the tough environment in which the World Cup is at stake. But if you learn to fight anywhere, it’s in sport. That’s why we will do our part.”
“This is the moment to thank our sponsors and partners, we are talking to them closely about what is happening,” said the former motocross vice world champion. “They are all supporting us, it’s incredible. This is important right now – we are proud of our partners and need them more than urgently to maintain stability for the next two years. Without them it wouldn’t work.”
Savings can be made in many areas, Beirer gives an exemplary example: “This year we brought our own GASGAS hospitality into the driver’s position, we probably won’t see it again next year. Even outside of the resources you need to race successfully, there are things where money was spent that were very enjoyable and a lot of fun. For a few weeks now, we have had the motto that we no longer have the ‘nice to have’ money, but we will do everything we can to ensure that the ‘must have’ money is there. There will no longer be any luxury in the area and some single rooms will become double rooms. We start where it doesn’t hurt the racing driver on the track.”
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