KTM, which owes 19 billion kroner and which will soon have to pay a whopping 4 billion kroner in installments, has kicked out its savior.
KTM, the motorcycle brand that was saved from bankruptcy in the 1990s, has fired its savior from that time, Stefan Pierer.
"Stefan Pierer is resigning from his position as CEO of KTM AG today," a company statement said.
Earlier this week, KTM was otherwise reconstructed following an agreement on debt write-down with creditors.
Gottfried Neumeister took over the position of Managing Director, while Stefan Pierer became Deputy Managing Director.
Now, after a short time, KTM has chosen to continue without Stefan Pierer. The Austrian businessman, who is worth billions of kroner, took over the company and averted bankruptcy in the 1990s.
The KTM founder who wouldn't leave is kicked out anyway
– KTM is my life's work and I don't want to leave it, Stefan Pierer said recently.
But he came to it anyway.
"Stefan Pierer is stepping down from his position as CEO of KTM AG today. Stefan Pierer followed Gottfried Neumeister as co-CEO until the restructuring plan was approved by the creditors of KTM AG, and is now handing over the management of KTM AG entirely to him," KTM explains.
KTM plans to resume production in Mattighofen in March, but on a limited scale. First, the company will sell off its large stock of unsold motorcycles. The brand is said to have at least 250,000 motorcycles in stock.
The company needs new capital and investors to ensure its survival. Indian Bajaj and Chinese CFMoto are mentioned as potential investors who could inject the necessary billions into KTM's operations.
Italian Agusta, which KTM recently acquired, will be sold back to its original owners as part of the rescue plan. As recently as last week, it was reported that BMW was interested in taking over KTM. But the Germans are now out of the picture again.
