KTM AG Archives

BMW Ingin Beli KTM?

Dalam satu lagi khabar angin atau berita sensasi – bergantung kepada sama ada ia akan berlaku – dalam saga KTM, BMW dikatakan berminat untuk membeli KTM.

Berita ini disiarkan oleh media perniagaan Austria oe24, yang mengatakan mereka mendapat maklumat daripada seorang dalaman yang biasa dengan penyusunan semula KTM. Pemiutang dijangka mengundi masa depan KTM AG hari ini (25 Februari) pada pukul 9:00 pagi waktu Austria (4:00 petang waktu Malaysia). Sumber dalaman itu juga memberitahu oe24 bahawa Dr. Peter Vogl, pentadbir muflis, “mempunyai keutamaan untuk pembeli tertentu, iaitu BMW Motorrad.”

“Pada mesyuarat penyelesaian pada hari Selasa, BMW Motorrad bercadang untuk melabur dan meneruskan jenama KTM,” tambahnya lagi.

Walaubagaimanapun, mengambil laluan BMW akan menjadi malapetaka bagi 4,500 pekerja KTM kerana mereka mungkin diberhentikan menjelang akhir tahun 2025. Dikatakan bahawa BMW ingin memindahkan jabatan penyelidikan dan pembangunan KTM ke Munich, Jerman, manakala produksi akan dipindahkan sepenuhnya ke India.

Selain itu, pembekal KTM yang sedia ada di Austria juga akan rugi jika perjanjian dengan BMW berjaya, kerana BMW pasti akan menggunakan pembekal mereka sendiri. Oleh itu, terdapat kebimbangan bahawa akan berlaku kebankrapan besar-besaran di Austria.

Jika itu belum cukup teruk, pengambilalihan BMW bermakna pembayar cukai Austria perlu menanggung €225 juta kerana dana penyamaan beban muflis negara akan membayar untuk pekerja yang diberhentikan.

Sebaliknya, pembelian oleh BMW akan melihat rancangan MotoGP BMW Motorrad mungkin dipercepatkan.

BMW Wants to Buy KTM?

In another sensational rumour or news – depending on if it goes through – in the KTM saga, BMW is said to be interested in buying KTM.

The news was posted by an Austrian business media oe24, saying that they learned from an insider familiar with KTM’s restructuring. Creditors are set to vote on KTM AG’s future later today (25th February) at 9:00 A.M. Austrian time (4:00 P.M. Malaysian time). The insider also told oe24 that Dr. Peter Vogl, who is the insolvency administrator, “has a preference for a specific buyer, namely BMW Motorrad.”

“At the settlement meeting on Tuesday, BMW Motorrad intends to step in as an investor and continue the KTM brand,” he further added.

The insider had also claimed that Oberbank is the party pushing BMW Motorrad to acquire KTM. “Their CEO, Franz Gasselsberger, has strong ties to the BMW Group, as the Oberbank is also the house bank for the BMW engine plant in Steyr.”

However, taking the BMW route would be disastrous for KTM’s 4,500 employees as they could be laid off by end-2025. It was said that BMW will want to move KTM’s research and development department to Munich, Germany, while production will move completely to India.

Additionally, KTM’s present suppliers in Austria will also lose out if the deal with BMW works out as the latter would definitely resort to their own suppliers. Hence, there is concern that there will be mass bankruptcies in Austria.

If that is not bad enough, BMW’s takeover would mean that the Austrian taxpayers will have to shoulder €225 million as the country’s insolvency burden equalisation fund pays for for the laid off workers.

On the other hand, BMW’s buyout will see BMW Motorrad’s MotoGP plans may be fast-tracked.

Stefan Pierer Steps Down as CEO of Pierer Mobility and KTM

Stefan Pierer has stepped down from the position of CEO to the Pierer Mobility Group (PMG) and KTM AG.

However, he will remain in both companies as the Co-CEO to Gottfried Nuemeister, who joined PMG as the Co-CEO last year.

“Stefan Pierer will hand over the role of CEO of Pierer Mobility AG and KTM AG to Gottfried Neumeister,” according to a statement from PMG. It adds that Pierer “will continue to support [Neumeister] as Co-CEO during the restructuring process.”

On the announcement of his departure from the CEO role, Pierer said: “For me, KTM was always more than just a company – it was and is a passion, a mission and a family.

“The decision to hand over the helm was not an easy one. I am deeply convinced that Gottfried Neumeister, with his strategic foresight and commitment, is the right choice to lead KTM into the future.”

“KTM stands for courage, innovation and passion – values that we will continue to live by and carry into the future. Together with our team, we will continue to strengthen KTM and set new standards to build the best motorcycles in the world.”

Pierer’s term as CEO was supposed to end on 31 December 2025.

The news comes amid financial difficulties for KTM AG which has seen it commence insolvency proceedings which remain ongoing in an attempt to avoid bankruptcy. KTM is currently in self-administration proceedings, and has and will continue measures to cuts costs within the company.

Part of this has been reducing the size of the workforce, which the PMG statement announcing the change in CEO adds has been cut by 1,800 employees.

The reduction in workforce was combined with a reduction in production volume to 230,000 in 2024, which the statement says has “relieved by around 40,000 units. This represents an important first step in the restructuring plan.” The 40,000 unit reduction in production is equals to -18%.

KTM is Insolvent and Enters ‘Self-Administration’

KTM’s parent company, Pierer Mobility AG has failed to source for a cash infusion of at least €100 million, and as a result, KTM AG is now insolvent. The company has entered ‘self-administration’ in order to stave off bankruptcy. In other words, they are working on a reorganisation plan with their creditors within a 90-day timeframe.

As part of the restructuring efforts, Pierer Mobility outlined plans for KTM that involve scaling back production and gradually reducing surplus inventory. These measures aim to diminish the output of the company’s Austrian facilities by over €1 billion in the coming two years.

The impact on Pierer Mobility’s stock was severe, with a further 45% decline to 6.9 Swiss Francs. All in all, their stock has plummeted by 88.1% from its previous high of 95.00 Swiss Francs on 14 January 2022. This marked the steepest single-day decrease in the company’s history.

KTM’s problem began when they increased production to cater for the market demand post-Covid-19 pandemic. However, it soon became apparent that their production had grossly outstripped demand, leaving dealers with excess stock. To exacerbate their woes further, there is currently an industrial crisis across Europe, coupled with a decrease in the demand for motorcycles due to rising costs of living.

Some pundits have also pointed out the quality issues faced by the LC8c engine platform, which powers the 790 and 890 ranges.

Pierer Industrie AG, the parent company of Pierer Mobility, which is co-owned by Stefan Pierer and Bajaj Auto Ltd. of India, has been seeking to restructure its debt.

On Monday, the company approached its creditors with a request to prolong the maturity of nearly €250 million ($262 million) of its liabilities.

KTM CEO Stefan Pierer said alongside newly appointed Co-CEO Gottfried Neumeister: “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.”

“The enthusiasm of our employees is our most important competitive advantage,” Gottfried Neumeister added. “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.”

Despite Neumeister’s positive tone, a separate statement released by Pierer Mobility on the same day stated that the company expects KTM to end the 2024 financial year with a negative net financial outlook said to be in the ‘very high’ hundreds of millions.

Since 1992, KTM has grown from 160 employees and a production volume of 6000 bikes, to over 5000 employees and the capability of producing 1000 motorcycles per day. As such, further job cuts are expected.

MV Agusta CEO Dismisses KTM Takeover Rumours

In a recent interview with Motorrad magazine, MV Agusta CEO Timur Saradarov addressed the swirling controversy surrounding the partnership between MV Agusta and KTM, dispelling rumours of a potential takeover by the Austrian motorcycle manufacturer.

Partnership between MV Agusta and KTM began in November 2022.
KTM currently holds a 25.1-percent stake in MV Agusta.

The partnership sparked speculation about KTM’s intentions to acquire a majority stake in the Italian brand with executives from Pierer Mobility, KTM’s parent company, had expressed their desire for a majority stake in MV Agusta, with an undisclosed timetable in place.

However, Saradarov remains unfazed by KTM’s ambitions.

“It’s nice that there is such a great interest from KTM in MV Agusta,” he said.

Saradarov, who currently owns 74.9 percent of MV Agusta, expressed his intention not to sell and assured that nothing would change in the next three to four years.

Meanwhile, regarding KTM’s comments about MV Agusta’s Lucky Explorer model, Saradarov neither confirmed nor denied its inclusion in the lineup but revealed that the MV Agusta LXP series is in the works, with the 950 variant confirmed.

Saradarov stated that the KTM portfolio is under consideration now that the two companies are in partnership, leading to the development of the MV Agusta LXP series, which will include the Lucky Explorer model.

Saradarov also provided insights into the forthcoming LXP series, stating that it will feature a completely different three-cylinder engine. The global unveiling of the LXP series is expected in late summer 2023, with MV Agusta aiming to produce 2,500 to 3,000 units this year.

(source: Motorrad)

KTM Wants To Take Control Of MV Agusta

Pierer Mobility Group (PMG) has expressed its intention to become the majority shareholder of renowned Italian motorcycle manufacturer MV Agusta, according to a recent interview with Hubert Trunkenpolz, a member of PMG’s Executive Board.

PMG currently holds 25.1 percent stake in MV Agusta.
PMG plans to expand the current production line.

Last year, PMG acquired a 25.1% stake in MV Agusta, raising concerns in Italy that the company would suffer the same fate as Husqvarna, which became a subsidiary of KTM. However, Trunkenpolz has reassured enthusiasts that MV Agusta will not follow the same path.

Contrary to downsizing and relocating production, PMG plans to enhance MV Agusta’s existing production line. Last year, the company manufactured a mere 1,000 motorcycles, a figure Trunkenpolz considers insufficient. He envisions increasing the production capacity to 12,000 bikes annually, highlighting the importance of achieving this goal for KTM.

In addition to preserving MV Agusta’s production base in Schiranna, Trunkenpolz explained that the brand’s role within the PMG portfolio will be focused on producing luxury motorcycles priced at EUR30,000 (RM140k) or higher.

This strategic positioning aims to prevent overlap with other PMG brands such as KTM, Husqvarna, and GasGas. Trunkenpolz also criticized MV Agusta’s Lucky Explorer model, which is manufactured abroad and, in his opinion, detrimental to the brand’s image.

*The Lucky Explorer 5.5 initial plans is to be manufactured in China via QJ Motor.

Acquiring a controlling stake in MV Agusta is crucial for PMG to implement the desired changes. PMG aims to hold at least 50.1% ownership in the company.

Trunkenpolz confirmed that PMG’s stake will gradually increase but did not disclose the exact timeframe, as agreed upon by the shareholders. However, he did mention that PMG intends to invest in the Varese region, where MV Agusta is headquartered, over the next two years.

With these plans, PMG aims to revitalize MV Agusta, ensuring its future as a luxury motorcycle brand known for its Italian heritage. By expanding production capabilities and maintaining the brand’s distinct identity, PMG seeks to unlock the company’s untapped potential. Motorcycle enthusiasts will eagerly await the developments resulting from PMG’s increased investment and growing influence within MV Agusta.

Bajaj Chetak Electric Scooter To Enter Europe In 2024 – KTM AG

The Bajaj Chetak electric scooter will go on sale in Europe in 2024 through KTM dealerships.

The Chetak electric scooter is Bajaj’s first attempt at electric two-wheelers.
The Chetak is currently on sale in 27 cities in India.

The confirmation news came from the top man in KTM AG, Stefan Pierer.

“We will be launching Chetak in 2024. It may hit roads post-March, as it is a starting time for the on-road season.

“The price point will be very competitive, and it will be taking on products from Chinese and Taiwanese companies. It will be across all central European markets,” said the CEO.

Interestingly, Pierer confirms that the electric scooter will continue to carry the Chetak brand due to its rich history.

“The second generation is a very nice product. We will use it as Chetak, it is a known brand, and we will be saving money on marketing and digitalisation.

“Secondly, Chetak stands for its famous history in India, and it will help us too,” he added.

Meanwhile, KTM is also developing its own 48-volt electric motorcycle alongside Bajaj.

However, detailed information regarding the project is still unavailable.

MV Agusta CEO Talks KTM Partnership

MV Agusta is back on the rise since being purchased by Russian entrepreneur, Timur Sardarov in 2019.

KTM AG signs a multi-year deal with MV Agusta to distribute the Schiranna motorcycles in North America.
KTM purchased 25.1% stake in MV Agusta.
KTM to distribute MV Agusta motorcycle and vice versa.

Despite immediately facing serious struggles including the global pandemic, supply and resource shortages and the recent Ukraine-Russia conflict, MV Agusta has been making great strides.

However, the focus now is not just surviving but also ensuring that the MV Agusta brand continue to thrive in the motorcycle market.

In order to do so, the Italian moniker recently agreed to a strategic partnership with Pierer Mobility Group’s KTM.

In a recent interview with Motorcycle.com, Sardarov explained the reason behind the big move.

“And so that’s why for me to partner up with a big business, with a big industrial partner like KTM–it makes my life easier.

“I want to focus on developing the business, on making the company better and more efficient–but it’s very hard to do this when you’re constantly thinking about whether we should ship our wheels from China by plane or by boat!,” he said.

MV Agusta and KTM announced a new distribution deal back in September before it was confirmed a month later that KTM AG has owned a 25.1 per cent stake in MV Agusta.

Interestingly, two KTM senior management team members also joined MV Agusta’s board of directors as a result from the partnership.

“We’re going to develop a network together, so it’s going to be either multi-brand dealers, or standalone dealers, depending on the country, but it’s definitely going to mean better dealers overall.

“I hope some of our existing dealers will stay with us, because many of them have invested heavily in MV, and I’m really grateful to them for doing so, and I will make sure that they are still part of our family.

“But some other dealers simply haven’t performed, so we’ll be letting them go,” added Sardarov.

Although some might suggest that KTM AG could acquire the Italian brand altogether, Sardarov is adamant that this is not the case.

(Source: Motorcycle.com)

KTM AG Now Owns 25.1% Stake In MV Agusta

KTM AG now owns a large chunk of Italian motorcycle maker, MV Agusta after months of rumours circulating between the two brand.

KTM purchased 25.1% stake in MV Agusta.
KTM to distribute MV Agusta motorcycle and vice versa.

In an official statement released on Thursday, KTM AG has acquired a significant 21.1 per cent of the Varese-based company, just weeks after the two side entered a distribution agreement in North America.

The distribution deal was the strongest signal yet that KTM AG and MV Agusta has gotten into a bigger agreement than what was expected.

“Within the framework of this strategic partnership between the two European motorcycle manufacturers, KTM AG, a company of PIERER Mobility, will provide MV Agusta with supply chain support and take over the purchasing.

“Furthermore, in the course of this cooperation, MV Agusta will partly distribute its product range via PIERER Mobility’s worldwide distribution network.

“In November 2022, KTM AG will acquire a 25.1% stake in MV Agusta Motor S.p.A., based in Varese (Italy), by way of a capital increase,” said MV Agusta in a statement.

The new partnership will witness both sides helping each other out in terms of motorcycle distribution and supply chain support.

MV Agusta And KTM Announced New Distribution Partnership

KTM AG announced a new distribution deal with MV Agusta, which will see the Austrian firm assist with distributing the Italian company’s motorcycles.

KTM AG signs a multi-year deal with MV Agusta to distribute the Schiranna motorcycles in North America.
Selected KTM dealership will sell MV Agusta motorcycles in North America.

According to the official statement, the multi-year partnership will see KTM AG – the subsidiary of PIERER Mobility AG – distribute and promote MV Agusta’s motorcycle range in North America and Mexico.

To achieve this, KTM AG will set up a dedicated US-based legal entity that will take charge of all the Italian company operations in North America.

That said, MV Agusta motorcycles can still be purchased from the Italian brand’s existing dealers and new ones but also selected KTM dealerships.

In addition, KTM AG will also set up a company based in the United States dedicated to MV Agusta operations in North America.

The deal is part of MV Agusta’s strategic plan to achieve significant growth in the coming years.

“I am particularly pleased with this agreement signed between two historic European motorcycle companies.

“I am sure that KTM’s impeccable and widespread sales organization, combined with the very strong appeal that our brand has always exercised overseas, will bring great satisfaction to both, creating synergies that will allow us to best implement our growth strategy in the North America market,” said MV Agusta CEO, Timur Sardarov.

Meanwhile, Hubert Trunkenpolz, a Member of the Executive Board at KTM AG, also expressed his excitement over the new partnership.

“We are extremely excited to start a new partnership with such a historic motorcycle brand.

“Our brands are going from strength to strength everywhere in the world, particularly in North America, where we will exceed 100,000-unit sales in 2022 with the KTM, Husqvarna and GASGAS motorcycle brands.

“Taking on the distribution of the MV Agusta brand will complement our extensive premium motorcycle range.

“With the addition of the most iconic Italian luxury motorcycle brand to our KTM North America operations, we are able to ensure support to all North American motorcycle enthusiasts as well as bringing exciting new business opportunities to existing and new dealers,” he said.

KTM European Q1 Sales Increase Surprised CEO

KTM unit sales in Europe increased by 10% in Q1 2019.
They moved a total of 261,000 bikes in Europe.
The result surprised even KTM CEO Stephan Pierer.

KTM unit sales in Europe increased by 10% in the first quarter (Q1) of the year. The result even took KTM CEO Stephan Pierer by surprise.

The Austrian giant moved 261,000 bikes in that period of time. In fact, the results not only the CEO but also us. There are many external forces that seem to force motorcycle sales down in the EU at the moment such as Brexit and political tensions. He also added that the news was “sensational.”

Given the buoyant news, Pierer wants to look to the future, which includes electric bikes. The manufacturer already has an electric in the Freeride E-XC but will sure tap into the non-offroad market as well. “E-bikes have become a huge market. As a large manufacturer, you have to there.”

Adding to the news, he also hopes that KTM can maintain the momentum and set a new target of selling 400,000 bikes worldwide by 2022.

They have has launched a number of new models recently, including the 790 Adventure, 790 Adventure R and 1290 Super Duke GT. We wonder how these models contributed to the number.

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KTM AG

In a recent interview with Motorrad magazine, MV Agusta CEO Timur Saradarov addressed the swirling controversy surrounding the partnership between MV Agusta and KTM, dispelling rumours of a potential takeover by the Austrian motorcycle manufacturer.

Pierer Mobility Group (PMG) has expressed its intention to become the majority shareholder of renowned Italian motorcycle manufacturer MV Agusta, according to a recent interview with Hubert Trunkenpolz, a member of PMG’s Executive Board.

The Bajaj Chetak electric scooter will go on sale in Europe in 2024 through KTM dealerships.

MV Agusta is back on the rise since being purchased by Russian entrepreneur, Timur Sardarov in 2019.

KTM AG now owns a large chunk of Italian motorcycle maker, MV Agusta after months of rumours circulating between the two brand.

KTM AG announced a new distribution deal with MV Agusta, which will see the Austrian firm assist with distributing the Italian company’s motorcycles.

KTM unit sales in Europe increased by 10% in Q1 2019.

They moved a total of 261,000 bikes in Europe.

The result surprised even KTM CEO Stephan Pierer.

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