The Pierer Mobility Group, owner of iconic brands such as KTM, Husqvarna, MV Agusta and GASGAS, is going through turbulent times. In the second half of 2024, Pierer Mobility AG disappointed market expectations due to more difficult than expected economic conditions. The company also announced a major reorganization of its management.
In a recent press release, Pierer Mobility AG stressed the prolongation of global economic difficulties, with a stagnation persistent decline in the European economy and a recession notable on the German market. USA, one of the world's largest markets for motorcycles, are not doing any better, due to low consumer purchasing power affected by the high cost of living and high credit rates. The US motorcycle market, in particular, saw a 6,3% decline in registrations between January and September 2024, with September seeing a 14,6% decline, the lowest of the year.
PiererMobility highlighted the slowdown in market dynamics, particularly in the United States where high margin off-road products, usually the best performers in the second half of the year, were not enough to compensate for the general weakness of the sector. In Europe, registrations remained at the same level as the previous year thanks to growth in the low-end segmentMore overall dynamics are weakening.
KTM's T is also impacted by the measures
In response to this situation, the company announced a reorganization of its management, with a reduction in the board of directors. from six to two members. Stefan pierer, CEO, and Gottfried Neumeister, co-CEOs, will now lead the company. Among the most notable departures are Hubert Trunkenpolz, a historical figure who represents the 'T' in KTM and who had been chairman of the board since 2023. The restructuring also affects Alex Pierer, Director of Pierer Innovation AG, Florian Kecht et Rudolf Wiesbeck, current COO of KTM AG, all appointed to the board in 2023. This decision is part of a “strategic realignment” aimed at addressing current challenges.
PiererMobility also announced the revocation of its guidance for the 2024 financial year, admitting that it will be difficult to meet initial expectationsThe company has already carried out Triple-digit job cuts in Austria earlier in the year and has delocalized part of its production and R&D department to Asia to reduce costs.
The actions de Pierer Mobility AG have come under renewed pressure on the stock markets, falling by up to 23% this Tuesday, following this announcement, reflecting the seriousness of the situation and the uncertainties regarding the future of the company in an uncertain economic context. Pierer Mobility is therefore going through a difficult period, but the group has solid fundamentals and extensive experience. The ability to adapt quickly to market developments will be crucial to ensuring the group's sustainability.
