Stefan Pierer: “KTM is my life’s work and I will fight for it” – KTM boss explains financial future
Job cuts, production halted, KTM boss Stefan Pierer officially announce the future for the Austrian manufacturer – “We are making a pit stop for the future. The KTM brand is my life’s work and I will fight for it.”
A lot has been changing lately at KTM and, in a move to sure-up the company for the future, and navigate its way out of a financial bottleneck of huge proportions, the CEO Stefan Pierer has made a public announcement.
The listed parent company of KTM AG, Pierer Mobility, announced that it will submit an application for a restructuring procedure under self-administration on Friday for KTM AG. High financial requirements, which cannot be covered quickly, are cited as the reason and we understand “financing requirements” amount to a high, three-digit million amount.
In addition to the financial bottleneck, cuts in Mattighofen were announced last week including closing the production lines down in January and February.
The root of this is sales in Europe and the USA are below expectations. Production is to resume in March but at a reduced capacity of one-shift operation, which will cost around 300 of the 5,000 employees their jobs. This on the back of 300 job cuts in production and 120 jobs at the KTM research and development subsidiary during Spring 2024.
KTM CEO Stefan Pierer and Co-CEO Gottfried Neumeister today addressed the company's more than 5,000 employees, and the world, unveiling a plan to “navigate the current financial challenges and ensure a robust future for KTM.”
Stefan Pierer, CEO of KTM AG: “Over the past three decades, we have grown to become Europe's largest motorcycle manufacturer. 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.”
KTM, which has grown from 160 employees and a production volume of 6,000 units in 1992 to a capacity of up to 1,000 motorcycles per day, is now facing significant hurdles. To address these, KTM will initiate a legal restructuring with self-administration. The application will be submitted on Friday, 29 November, with the goal of concluding the process within 90 days.
You can read more about that financial and legal position here on the Pierer Industries website.
Since September 2024, Gottfried Neumeister has joined the Executive Board as Co-CEO. Stefan Pierer: “Gottfried Neumeister has brought impressive experience and a breath of fresh air and has made a significant contribution to addressing the current situation. I am convinced that together we will get the company back on track for success.”
Gottfried Neumeister, Co-CEO of KTM AG: “The enthusiasm of our employees is our most important competitive advantage. Their passion is the reason why KTM is globally synonymous with peak performance. We build our motorcycles reliably and robustly for every race, for every terrain. 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.”
Pierer and Neumeister emphasized the importance of the employees' commitment and support during this period. "Together, we have made KTM a success story, and together, we will carry KTM into the future," they stated.
