Austrian group Pierer Mobility, owner of iconic brands such as KTM, Husqvarna and GasGas, is going through a period of unprecedented turbulence. Financial difficulties, restructuring and regulatory investigations are undermining a giant that had previously seemed unsinkable.
The economic crisis of KTM continues to intensify, with major repercussions on its subsidiaries and its internal organization. After the announcement of the sale of its majority shares in MV Agusta, the parent company Pierer Mobility AG is now under investigation by the Austrian Financial Market Authority (FMA). Meanwhile, further layoffs are affecting the group's employees.
In November 2022, PiererMobility had acquired 25,1% of MV Agusta, before increasing this stake to 50,1% in March 2024, thus taking control of the Italian brand. However, as part of the current insolvency proceedings of KTM AG, the shares held in MV Agusta are now up for sale, according to an official announcement from the regional court of Ried im Innkreis.
Insolvency manager Peter Vogl also confirmed the sale of MV Agusta Services, the entity responsible for the brand's commercial activities. Rumors suggest that the former owner, Timur Sardarov, could be interested in a buyout to regain control of the legendary brand.
MV Agusta also faces overproduction, with around 2 unsold motorcycles stored in Austria. Production will be reduced to adjust supply to demand, which will have a direct impact on workers at the Italian plant in Varese. A solidarity agreement has been reached with the union, including a 20% salary reduction.
The first official report on the insolvency of KTM AG will be presented this Friday at the creditors' meeting
In an ad hoc press release, Pierer Mobility AG announced that it had commissioned Citigroup Global Markets Europe AG to seek new strategic and financial investors. The objective is to raise funds to support the activities of KTM AG and improve the group's financial situation.
However, this announcement comes as the Austrian FMA opened an investigation into a possible breach of transparency obligations by Pierer Mobility AG. It examines the period from May to November 2024, during which significant financial adjustments were made without immediate public communication. Sanctions could be applied in the event of a violation of stock market rules.
Last Thursday, a meeting between the leaders of KTM, the unions PRO-GE, GPA, and the Upper Austrian Chamber of Labor confirmed that 50 new layoffs to take place by the end of the yearThese job cuts bring the total to approximately 800 terminations since the start of the crisis.
According to motorsport total, the Chamber of Labor described the situation as " new loss of confidence "after the December salaries were not paid on time, contrary to management's promises." The unions and the works council have agreed to no longer rely on announcements, but only to act on the basis of facts." said AK Upper Austria.
The first official report on the insolvency of KTM AG to be presented at the creditors' meeting this Friday at the regional court in Ried im Innkreis. The court will have to decide whether KTM and its two subsidiaries may continue their activities under judicial supervision or if further restructuring is necessary.
In a context of unprecedented crisis, KTM is fighting on several fronts to try to secure its future and regain the trust of its employees, investors and partners. The survival of the Austrian manufacturer could well depend on the decisions that will be taken in the coming weeks.
