KTM’s financial turmoil has cast doubt over its long-term viability. On Friday (local time), administrator Peter Vogl presented a report during the latest hearing.
As it stands, there are more than 3500 claimed against KTM. Those are split between employees (2347) and other creditors (1187). Of the $3.6 billion, $2.7 billion has been recognised.
In addition, KTM Components GmbH has received 739 claims which come to $135 million (81 million EUR). Of that sum, $81 million has been recognised.
The other subsidiary, KTM Forschungs und Entwicklung GmbH, has raked in 1162 claims totalling $186 million (112 million EUR) of which nearly $69 million ($41.4 million EUR) had been recognised.
CEO Stefan Pierer had previously stood strong in his role but has stepped down. He has been replaced by Gottfried Neumeister. Pierer had remained on the board as its co-CEO.
In preliminary key figures for the 2024 financial year, the PIERER Mobility AG revealed it suffered a 29 percent decline in revenue, totalling $3.1 billion (1.9 billion EUR). Sales of motorcycles to dealers also declined 21 percent
Amid the financial turmoil, PIERER announced several financing offers had been received from investors.
“Until today PIERER Mobility AG has received several offers from investors as part of the investor process structured by Citigroup Global Markets Europe AG,” a statement read.
“With these offers, investors have declared that they will make financial resources available to the PIERER Group.
“The funds will either be made available to PIERER Mobility AG for onward transfer to subsidiaries, in particular to KTM AG, or will flow directly to KTM AG or its subsidiaries.
“Based on the available offers, financing at the level of PIERER Mobility AG supplemented by debt instruments at the level of KTM AG or its subsidiaries is also a possibility.
“With the financial resources offered, the quota from the restructuring plans of KTM AG and its insolvent subsidiaries can be financed at least to the statutory extent of 30 per cent.
“The company will enter into discussions with the investors who have submitted offers in order to define the detailed structure of the investments.”
Citigroup Global Markets AG has been tasked with finding new investors. It confirmed 23 potential suitors were part of the matter – some strategic and others financial.
“From a creditor’s point of view, an investor’s entry and the continuation of the company make economic sense,” said Karl-Heinz Goetze, the head of the Credit Protection Association of 1870.
“If the company were to be closed and broken up by the insolvency court, creditors would receive a significantly lower rate.
“If the company were to close, significantly more jobs would be lost, which would subsequently have massive negative effects on the entire region.”
KTM has continued its restructuring process, resulting in the loss of 1800 employees across PIERER Mobility AG – reducing from 6000 employees to 4400.
“In addition, production output was deliberately curtailed to reduce the number of motorcycles held by dealers and importers,” a statement read.
“By reducing the production volume to around 230,000 motorcycles (-26% compared to 2023), global inventories were relieved by around 40,000 units (-18%).
“This represents an important first step in the restructuring plan.”
KTM put its production line in Mattighofen on hold late last year. It is expected that production will resume in mid-March.
Due to the ongoing reorganization, PIERE Mobility AG said KTM AG would push the publication of its annual report for 2024 to mid-April.
The company noted a downturn in motorcycle sales but said interest in the brand remained high courtesy of its motorsport presence.
“In the 2024 financial year, the Group sold 292,497 motorcycles (of which around 60,000 were sold via its Indian partner Bajaj), around 21% fewer than in the previous year (372,511 motorcycles),” a statement read.
“Around 110,000 motorcycles were sold on the European market. Europe thus accounted for 38% of Group sales; North America accounted for 24%, India and Indonesia (via partner Bajaj) for 21% and the remaining sales countries for 17%.
“On a positive note, demand from consumers was strong. Distributors and dealers sold around 268,000 motorcycles to retail customers, the same level as last year.
“This demonstrates the continued high level of trust that dealers and consumers place in the company. Recent racing successes have confirmed this confidence.
“With three consecutive victories in the Enduro World Championship, two Supercross season openers and the first Dakar Rally win across all major motorcycle categories, the 2025 motorsport season has got off to a successful start.
“In the Bicycle segment, the Group sold 106,311 electric bikes and bicycles (previous year: 155,859), which corresponds to a decline of around 32%. This decline in sales resulted from the sale of the R Raymon brand.”
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