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On November 29, Pierer Mobility AG, the owner of bicycle and electric bicycle brands Husqvarna, GasGas, and Felt, announced that it has applied for a self-managed restructuring program for its motorcycle subsidiary, KTM AG. The restructuring plan is expected to be completed within 90 days.
KTM AG is facing significant financial challenges, with its financing needs reportedly reaching several hundred million euros. It is important to note that KTM AG’s motorcycle operations are separate from those of KTM Fahrrad GmbH, which operates independently as a manufacturer of bicycles and e-bikes.
This announcement comes on the heels of a dramatic decline in Pierer Mobility AG's stock market valuation, which has plummeted 45% in the past week and 87% since the beginning of the year. The financial difficulties have prompted the company to explore various measures to stabilize its operations and improve liquidity.
In a bid to reduce excess inventory, Pierer Mobility AG also hinted at plans to gift 11,000 bicycles to its employees. The company explained in a statement, “In 2023, we held a bicycle event, and the 11,000 bicycles mentioned by the media represent an estimate of the number of bikes we plan to distribute to employees in fiscal year 2024, similar to last year.” The company’s 2023 annual report included a section titled “Summer Bicycle Activity,” which noted that 5,600 summer bikes were distributed to Pierer employees, shedding light on the origin of the rumored 11,000 bicycles.
As KTM AG navigates this complex restructuring process, the company aims to address its financial challenges while continuing its legacy as a prominent player in the motorcycle industry. The upcoming months will be critical in determining the future stability and growth of KTM AG amidst a rapidly changing automotive landscape.