KTM advances in its restructuring, Pierer takes a step back

This January 24 will be decisive for the future of KTM. The manufacturer is expected to attend a hearing where its claims will be examined, with debts approaching three billion euros. Before this important deadline, Pierer Mobility, the parent company of the brand, announced certain changes.

Stefan Pierer, who gave his name to the group and remains a major shareholder, will leave his position as general manager, taken over by Gottfried Neumeister. Pierer will continue to serve as deputy general manager during KTM’s restructuring process. The two men reverse roles that had been in place since last September, giving more power to Neumeister, particularly known for his activities in the world of aviation, after co-founding an airline with Niki Lauda in the 2000s.

KTM also provided information on its financial situation. Its revenues fell in 2024, from 2.7 billion euros in the previous year to 1.9 billion. Losses before interest, taxes, depreciation and amortization are estimated at 300 million euros. The group sold a total of 292,497 motorcycles worldwide, a drop of 21% compared to 2023. It also sold 106,311 bicycles, mechanical or electric, a drop of 32%.

The group confirmed it had let go of a total of 1,800 employees, while reducing production due to falling sales.

It now remains to be seen to what extent KTM will be able to recover. The group is said to have up to 5,400 creditors, including the town of Mattighofen where it is based, due to delays in tax payments. The banks are said to have put pressure on Pierer, who has been very discreet in recent months, to take a step back.

At the end of 2024, KTM mandated Citigroup Global Markets Europe AG to find investors and in a second press release published Thursday evening, the manufacturer was pleased to have received “several offers”which will be studied in the coming weeks. Justice must make a decision on February 25, the week of the first MotoGP Grand Prix of the season. A departure from the championship has been mentioned to reduce expenses, but KTM is seeking to separate the entities to maintain competitive activity.

With Gerald Dirnbeck