KTM / PIERER Mobility AG
November 27 Update
Firstly, if you are not aware of any of the background of how it came to this for KTM, I suggest you read this piece I wrote early in October.
Since then things seem to have worsened quite markedly as KTM management drilled down into things further. That led to them recently seeking a standstill agreement with creditors and bridge financing.
Overnight the situation seems to have come to a head as management has realised that it will not be possible to secure the necessary interim financing in a timely manner. The sum being sought is ‘a high three-digit € million figure’.
The Executive Board of KTM AG, therefore, decided to file the application for the initiation of judicial restructuring proceedings with self-administration over the assets of KTM AG and its subsidiaries KTM Components GmbH and KTM F&E GmbH on November 29, 2024.
The proceedings give the opportunity to continue to manage the assets under supervision and to reorganise the KTM Group independently.
Management has stated that all other subsidiaries of KTM AG, in particular all sales companies, are not affected.
The aim of the proceedings is to agree on a reorganisation plan with the creditors within 90 days to secure the existence of the KTM Group sustainably and to create the basis for emerging strengthened from the process.
Additionally, KTM CEO Stefan Pierer and Co-CEO Gottfried Neumeister addressed the company’s more than 5,000 employees on Tuesday, November 26.
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.”
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.
My thoughts go out to the people of Mattighofen, the rural town that hosts so many facets of KTM and its subsidiaries. The population is less than 7000, and more than two-thirds of them work directly or indirectly in some fashion with KTM and its brands.
Schoolkids participate in apprenticeship programs within KTM, arriving in coaches each day to the plant. Each apprentice that completes his qualifications with the company is gifted a KTM 390 Adventure or 390 Duke.
KTM is an integral part of the town and there is simply too much infrastructure sprawling inbetween the fertile farmlands there to go to waste.
The company is also CEO Stefan Pierer’s life’s work. The 68-year-old was assessed by Forbes last year to be worth $1.6 billion USD. Obviously that fortune has taken a significant hit of late, but he is still a man of immense means and I trust he will be able to right the ship and forge a new way forward.
For the people of Mattighofen and all the KTM staff around around the world, I think it is fair to say all motorcyclists really do hope a sustainable path forward can be found.