Pierer Mobility AG, which owns motorcycle brands such as KTM and MV Agusta, is now in such serious financial trouble that the management is working on a rescue plan.
The Austrian motorcycle brand KTM, which today is in the family of GASGAS, Husqvarna and MV Agusta, has financial problems.
Directors Stefan Pierer and Gottfried Neumeister must now navigate the company through a period of declining demand for motorcycles.
Pierer Mobility AG, the parent company behind KTM, has announced a number of initiatives to meet the economic challenges. Blue. the board must be reduced from six to two members and layoffs must be carried out.
– The second half of the year at PIERER Mobility is generally characterized by a product mix with a high margin, especially within the off-road segment," reads a statement from the company.
That's what Autodrive writes.
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– The available registration data for the overall motorcycle market in the United States for the period January to September 2024 shows a decrease of 6.3%. September was also the weakest month since January 2024, down 14.6%, meaning a quick recovery is unlikely."
Earlier this year, when Pierer Mobility took over MV Agusta, expectations for 2024 were positive. The company revised its forecasts so everything seemed to be moving forward. But since then, those expectations have been pulled ashore again.
Instead, the focus is on the stock of motorcycles out at the group's dealers.
"Pierer's brands will either lower inventory prices at retailers or offer discounts and cash incentives to move products," a statement confirmed.
The upcoming EICMA motorcycle show in Milan, Italy is also expected to be a more subdued affair than usual. Pierer Mobility will present its latest models, but the focus will likely be on dealing with the current situation.
The future of Pierer Mobility and the iconic brands under the company's umbrella is uncertain. New motorcycles are under development. But the current situation creates uncertainty about what the future holds for KTM, GASGAS, Husqvarna and MV Agusta.
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