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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%.

Syarikat Induk KTM, Peirer Mobility Group Hentikan Empat Pengarah

Dalam satu langkah yang mengejutkan, syarikat induk KTM Pierer Mobility Group telah memecat empat pengarah. Oleh itu, lembaga pengarah mereka dikecilkan daripada enam kepada hanya dua ahli.

Keputusan itu akan meninggalkan hanya Ketua Pegawai Eksekutif Stefan Pierer dan Ketua Pegawai Eksekutif Bersama Gottfried Neumeister untuk menerajui syarikat. Nama terbesar yang akan dipotong ialah Hubert Trunkenpolz, yang merupakan cucu kepada salah seorang pengasas KTM Hans Trunkenpolz – “T” dalam nama jenama itu. Tiga pengarah lain ialah Alex Pierer, Florian Kecht, dan Rudolf Wiesbeck.

Keputusan itu berikutan kerumitan kewangan kumpulan yang berterusan yang telah menyaksikan pengecilan saiz pekerja. Mereka telah menyebut kos sara hidup yang tinggi di Amerika Syarikat dan kemelesetan di Jerman sebagai

Menurut kenyataan syarikat itu, “Ekonomi Eropah terbantut, dengan pasaran Jerman yang penting khususnya dalam kemelesetan.”

“Di Amerika Syarikat, kuasa beli pengguna kekal rendah disebabkan kos sara hidup yang tinggi dan tempoh kredit pengguna yang mahal.”

PMG telah menyaksikan penurunan -6.3% dalam pendaftaran di AS dari Januari hingga September 2024. September sahaja telah menyaksikan penurunan sebanyak -14.3%. Angka yang membimbangkan itu telah mendorong PMG untuk mendakwa bahawa “pemulihan pesat tidak boleh dijangka.”

Syarikat yang memiliki KTM, Husqvarna, GasGas dan MV Agusta itu mengumumkan awal tahun ini bahawa mereka merancang untuk lebih banyak pertumbuhan dalam pasaran bukan Eropah dengan kerjasama Bajaj Auto (India) dan CFMoto (China).

Kenyataan itu menambah: “Walaupun terdapat sedikit pengurangan dalam inventori, penyahstock selanjutnya kekal sebagai objektif penting.”

“Pierer Mobility kekal komited dengan jelas untuk menyokong peniaga dan pembekal sebagai rakan kongsi strategik dalam masa sukar ini. Hasil daripada langkah-langkah yang diambil dalam hal ini, modal kerja dan seterusnya hutang bersih syarikat dan perbelanjaan faedah meningkat.”

Disebabkan keadaan yang membimbangkan, PMG telah mendarat, ia mengesahkan bahawa ia juga membatalkan panduan 2024nya.

Kenyataan itu menyimpulkan: “Akibat daripada keadaan ini Pierer Mobility akan meleset daripada jangkaan dari segi hasil dan pendapatan, serta berkaitan dengan pengurangan modal kerja dan hutang bersih dalam tahun kewangan semasa, dan akan membatalkan panduannya. untuk tahun kewangan 2024.”

“Semakan baharu pelarasan nilai bukan tunai juga akan dilaksanakan menjelang akhir tahun ini.”

KTM Parent Pierer Mobility Group Removes Four Directors

In a shocking move, KTM’s parent company Pierer Mobility Group has removed four directors. As such, their board of directors with be downsized from six to only two members.

The decision will leave only CEO Stefan Pierer and Co-CEO Gottfried Neumeister to helm the company. The biggest name to be cut is Hubert Trunkenpolz, who is the grandson of one of KTM’s founders Hans Trunkenpolz – the “T” in the brand’s name. The other three directors are Alex Pierer, Florian Kecht, and Rudolf Wiesbeck.

The decision follows the group’s continued financial struggles which already saw two rounds employee downsizing. They had cited high costs of living in the United States and recession in Germany.

According to the company’s statement, “The European economy is stagnating, with the important German market in particular in recession.”

“In the USA, consumer purchasing power remains low due to the high cost of living and long peirod of expensive consumer credit.”

PMG has seen a -6.3% decline in registrations in the US from January to September 2024. September alone saw a decline of -14.3%. Such alarming figures had prompted PMG to claim that “rapid recovery cannot be expected.”

The company which owns KTM, Husqvarna, GasGas and MV Agusta announced earlier this year that they are planning for more growth in non-European markets in partnership with Bajaj Auto (India) and CFMoto (China).

The statement adds: “Despite the slight reduction in inventories, further destocking remains an important objective.”

“Pierer Mobility remains clearly committed to supporting dealers and suppliers as a strategic partner in these difficult times. As a result of measures taken in this regard, working capital and consequently the company’s net debt and interest expenses increased.”

Due to the worrying circumstances, PMG has landed itself in, it confirmed that it is also revoking its 2024 guidance.

The statement concludes: “As a result of these circumstances Pierer Mobility will fall short of expectations in terms of revenue and earnings, as well as with regard to the reduction in working capital and net debt in the current financial year, and is revoking its guidance for the 2024 financial year.”

“A new review of non-cash value adjustments will also be carried out by the end of the year.”

KTM, Pierer Mobility Acquires Controlling Stake in MV Agusta

We recently ran a story about how MV Agusta may be in financial trouble after a dismal performance in 2023. We also mentioned that MV’s CEO Timur Sardarov was adamant in not relinquishing control of the company to the giant Pierer Mobility Group (KTM, Husqvarna, GasGas). Well, news just broke that Pierer Mobility has indeed acquired a controlling stake in MV Agusta.

Pierer Mobility Group (PMG) has made clear that they wish to acquire a controlling stake in MV since their initial 25% purchase in 2020. The finalisation of the agreement sees PMG as the controlling shareholder when they issued a call option, increasing their share in MV to 50.1%.

The deal also sees a shakeup in MV’s day-to-day business. Hubert Trunkenpolz replaces Timur Sardarov as the CEO and Chairmon of the Board of Director. (Hubert is the nephew of Hans Trunkenpolz, who co-founded KTM, hence the “T” in brand’s name.) Sardarov will remain with MV in the role of Vice-Chairman. Apart from that, PMG is planning to expand MV’s headquarters at Varese, Italy.

Sadarov said:

“MV Agusta embodies passion and a unique sense of romance that captivated me, a seasoned entrepreneur, from day one. The personal challenge of guiding the company out of crisis and steering it towards success through innovative business strategies, team expansion, and new product developments has been conquered. It is an honor to play a role in shaping MV Agusta’s legacy. Over the past five years, both the company and I have evolved significantly. Our growth together is a testament to the transformative journey we’ve shared. My time with MV Agusta has been a pivotal chapter in my life, filled with mutual joys and challenges. As I continue to serve as a dedicated Vice-Chairman, I am committed to supporting the company and its ongoing success.”

So what now? It is going to really interesting to see what kind of products that this new venture will produce. KTM, for one, has stated unequivocally that they did not wish to produce anymore sportbikes since the RC8’s production ended. As for nakeds, KTM already have their bases covered with the 890 Duke and 1390 Super Duke R. In fact, KTM, GasGas, Husqvarna have covered many segments among them, more so KTM.

Or will PMG continue with putting out the existing lineup of MV Agustas?

Time will tell.

MV Agusta In Dire Straits (Again)?

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 Adds GasGas to Portfolio

KTM has inked a joint venture with Spanish manufacturer GasGas.
The cooperation will see the co-development of trials, enduro and electric bikes in Spain.
While GasGas is predominantly known as a trials manufacturer, they manufacturer other offroad bikes as well.

KTM has inked a joint venture with Spanish manufacturer GasGas.

The deal was inked between KTM Industries AG and Black Toro Capital, the owners of GasGas Motorcycles.

The cooperation will see the co-development of trials, enduro and electric bikes in Spain. The press release also stated that production of GasGas bikes and Torot electric vehicles will continue in Girona, Spain. GaGas will also benefit from KTM’s extensive sales and distribution network.

KTM will have three brands under their umbrella i.e. KTM, Husqvarna and GasGas. However, the joint venture is subject to antitrust authorities’ approval.

Earlier, it was announced that KTM Industries Group will be known as the Pierer Mobility Group in the future. KTM is now Europe’s largest motorcycle manufacturer. Besides owning Husqvarna and the possibility of GasGas soon, the group also owns WP Suspension.

On the other hand, GasGas specializes in offroad motorcycles since their inception in 1985. Their first bike was a trials bike in 1985, followed by enduro and motocross bikes in 1989, before adding quads to their model line-up in 2002.

Since then, they are predominantly known as a trials bike manufacturer when Jordi Tarrés won three successive world trials championships in 1993, 1994 and 1995.

Additionally, they won the Trial Outdoor World Championship in 2005 and 2006 with Adam Raga. Raga also took the Trial Indoor World Championship in 2003, 2004, 2005 and 2006.

While they’ve made a name in trials, the company was also successful in enduro events. Paul Edmonson won two World Enduro Championships – the 125cc title in 1994 and 250cc title in 1996. Petteri Silvan then won the 250cc championship in 1999, followed by Petri Pohiamo in the 125cc class in 2003.

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