Pierer Industrie AG, the parent company of KTM, is going through a period of financial turbulence. The restructuring procedure opened in November 2024 has direct repercussions on the sporting commitment of the Austrian brand, particularly in MotoGP.
The group Pierer Industrie AG, parent company of KTM, is going through a serious financial crisis. With a net debt reaching 1,5 billion euros in 2024, a European restructuring procedure has been opened for avoid insolvency. This context requires KTM to review its strategy, including in the field of sport, while reaffirming its commitment to MotoGP.
The restructuring procedure, opened on November 25, 2024, allows to Pierer Industrie AG to present a recovery plan before December 27. This plan will have to detail the measures to ensure the sustainability of the group. The subsidiaries KTM Components GmbH and KTM F&E GmbH are also involved, with the aim of preserve the core of KTM's business.
For several months, negotiations have been underway with shareholders, banks and investors to cover this deficit. During this time, Pierer Mobility shares have fallen dramatically, going from more than 60 euros in 2023 to less than 8 euros at the end of 2024.
Faced with this crisis, KTM reviews its priorities. Hubert Trunkenpolz, vice-president of the group Pierre, said : " In sports, the focus will again be on the core brand KTM. The KTM brand is unimaginable without motorcycle sports. » Husqvarna has already left road racing, focusing exclusively on off-road, particularly in the United States.
KTM: “ We have a contract with Dorna and we will respect our commitments for the next two seasons »
Pete Beirer, Director of KTM Motorsport, also clarified: " we need to manage the costs of motorcycle sport efficiently. This means reduce unnecessary expenses while Now our commitment in MotoGP and supporting the KTM brand »
Despite the difficulties, the Mattighofen crest affirms its intention to continue in MotoGP. Trunkenpolz confirmed on speedweek : " We have a contract with Dorna and we will respect our commitments for the next two seasons. Sport is our most important marketing tool »
To ensure this commitment, KTM benefits from the support of Red Bull, a key partner who remains committed to supporting the team during this delicate period.
In an effort to streamline, the Austrians are identifying possible savings without affecting performance on the track. Beirer gave concrete examples: “ we have reduced unnecessary costs, like the dedicated GASGAS hospitality. Single rooms become doubles, and we eliminate pleasant but non-essential expenses. We do everything to preserve the essentials »
Despite the challenges, KTM remains determined to overcome this crisis. Beirer stressed the importance of this period to strengthen the brand and maintain high quality standards: “ We build the best motorcycles. If you learn to fight anywhere, it's in sports. »
KTM is banking on strong partnerships and rigorous management to navigate this turbulent period while maintaining its prominent place in motorcycle sport. The future will depend on the group's ability to balance its finances while keeping its sporting heritage intact.
