Pierer Mobility AG, parent company of the KTM, Husqvarna, and Gas Gas brands, has announced they “will apply for the initiation of judicial restructuring proceedings with self-administration” in an effort to restructure debt in the high hundreds of millions on November 29, 2024.
KTM grew from 160 employees and a production volume of 6,000 units in 1992 to a current capacity of up to 1,000 motorcycles per day, but now they face a significant challenge.
The company says they do not expect to be able to secure additional funding or interim financing in time to avoid these proceedings.
“Over the past three decades, we have grown to become Europe’s largest motorcycle manufacturer,” said CEO Stefan Pierer in a news release. “We inspire millions of motorcycle riders around the world with our products. Now we are taking a pit stop for the future. The KTM brand is my life’s work, and I will fight for it.”
If approved, the move will allow KTM AG to manage its assets under supervision and reorganize the KTM Group. All other subsidiaries of KTM AG will not be affected, including sales companies.
“Dear KTM friends, dear orange bleeders, KTM is facing major challenges,” Pierer added in a video statement. “We need a pit stop for the future. Today, we have decided to transfer KTM to a so-called legal restructuring proceeding with self-administration. The aim is to successfully conclude these proceedings within 90 days. We have chosen this path in order to remain capable of acting and to lead KTM back on track. I’ve always believed throughout my 30-year KTM career in the future of the brand. This brand, this factory, these motorcycles, that’s my entrepreneurial life.”
For the 2024 financial year, the company expects a negative annual net result in “the very high three-digit million range.”
“We’re convinced that together we can overcome this phase with the same passion that has made us successful in the past,” said Co-CEO Gottfried Neumeister. “We’ve shown that our team can win on a global scale. Five hundred ten global championships are outstanding. We truly believe in the strength of our people. They are the reason KTM stands for performance. Their passion is our most important competitive advantage.”
Neumeister joined the Executive Board as Co-CEO in September 2024.
“We build our motorcycles reliably and robustly for every race, for every terrain,” Neumeister continued. “Now it’s about making the company robust. Robust for the future. So that we can quickly focus again on what we do best: building the coolest motorcycles in the world.”
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