Pierer Mobility AG, which owns motorcycle brands like KTM and MV Agusta, is now facing such severe financial difficulties that management is working on a rescue plan.
The Austrian motorcycle brand KTM, along with its family brands GASGAS, Husqvarna, and MV Agusta, is in financial trouble.
Directors Stefan Pierer and Gottfried Neumeister must now steer the company through a period of declining motorcycle demand.
Pierer Mobility AG, the parent company of KTM, has announced several measures to address these financial challenges. Among them are plans to reduce the board from six to two members and to implement layoffs.
"The second half of the year at PIERER Mobility is generally characterized by a high-margin product mix, especially in the off-road segment," reads a statement from the company, according to Autodrive.
“Available registration data for the total U.S. motorcycle market from January to September 2024 shows a decrease of 6.3%. September was also the weakest month since January 2024, down 14.6%, suggesting a quick recovery is unlikely.”
Earlier this year, when Pierer Mobility took over MV Agusta, expectations for 2024 were positive, with revised forecasts that initially showed growth. But since then, those expectations have been scaled back.
The focus is now on clearing out the stock of motorcycles at the group’s dealerships.
"Pierer’s brands will either lower inventory prices at retailers or offer discounts and cash incentives to move products," the company confirmed in a statement.
The upcoming EICMA motorcycle show in Milan, Italy, is expected to be a more subdued event than usual. Pierer Mobility will present its latest models, but the focus will likely remain on managing the current financial situation.
The future of Pierer Mobility and the iconic brands under its umbrella is uncertain. While new motorcycles are in development, the current financial difficulties create uncertainty about what lies ahead for KTM, GASGAS, Husqvarna, and MV Agusta.
