KTM, GasGas, Husqvarna’s parent company, Pierer Mobility is now looking for a cash infusion. Things have gotten much more dire than expected, especially for the KTM brand.
The once proud Austrian manufacturer has since laid off jobs, fired four directors (one of them the grandson of KTM’s three founders), and restructuring the production. But nothing seems to work.
Just weeks after releasing their Q3 2024 financial report, Pierer Mobility released an “ad hoc announcement” saying, “The Executive Board is currently working on securing the financing of KTM AG, in particular on a bridge financing in the three-digit million range.” KTM is responsible for 95% of the group’s revenue but has seen a precipitous drop in sales. Adding to the hardship was Pierer Mobility’s acquisition of a controlling stake in MV Agusta and needing much resources to restructure it.
Another part of the statement says, “To this end, discussions are ongoing both with the core shareholder Pierer Bajaj AG and with existing financial creditors. The aim is to agree a standstill agreement with the financial creditors involved for the duration of these discussions as basis for the financial restructuring.”
Is Pierer Mobility looking to sell a controlling stake to or a further merger with Bajaj? Bajaj and Pierer had been working together for many years, producing the smaller range of bikes of 125cc, 200cc, 250cc, and 390cc. The 390 platform is the best-seller the world over. Bajaj is one of the world’s biggest motorcycle makers hence has huge resources, so who knows.
