In rather bizarre joint statements addressing their company’s workforce of more 5000 employees via a YouTube broadcast, Pierer Mobility Group and KTM chief executive Stefan Pierer — along with his recently appointed co-CEO Gottfried Neumeister — announced that the business was about to enter administration on 26 November. This will be part of “a comprehensive plan to navigate current financial challenges” and ensure “a robust future” for KTM.
Kicking off this confessional, Stefan Pierer said: “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.”
He then revealed a shock plan: “KTM, which has grown from 160 employees and a production volume of 6000 units in 1992 to a capacity of up to 1000 motorcycles per day, is now facing significant hurdles. To address these, KTM will initiate a legal restructuring proceeding with self-administration. The application will be submitted on Friday 29 November, with the goal of concluding the process within 90 days.”
Pierer then went on to introduce his new managerial partner: “Since September 2024, Gottfried Neumeister has joined the executive board as co-CEO. He 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.”
Finally, Neumeister added his views: “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 emphasised the importance of 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 opined.
As previously reported by BDN, the background to these developments was news that Pierer Mobility Group’s revised full-year 2024 financial results would reveal an operating loss of considerably more than €100 million. And it would therefore be seeking an urgent injection of fresh capital.