KTM rescue: 600 million euros for new hope and security!

KTM rescue: 600 million euros for new hope and security!

Munderfing, Österreich - On May 22, 2025, Gottfried Neumeister, the new head of KTM and Pierer Mobility, confirmed in an interview in the "House of Brands" in Munderfing that the company will remain independent. This explanation takes place after an intensive phase of uncertainty and financial difficulties. The renovation of the company, which will cost 600 million euros according to the new master, has already been financed. Despite the rainy weather, Neumeister is relieved and emphasizes that the most important thing has been reached after an agreement on the new majority owner Bajaj was reached more than six months ago. This step is crucial for the future of KTM.

In a comprehensive restructuring process, which was accepted by the creditors on February 25, 2025, a reorganization plan came into force. According to [piermobility.com] (https://www.piermobility.com/en/newsroom/eqsfeed/294705?type=corporate: press), this plan includes a cash compensation payment of 30 % for creditors who are to be paid out by May 23, 2025. In total, KTM AG needs around 800 million euros in fresh capital to have the production that was severely impaired since the submission of the proprietary application on November 29, 2024.

financial challenges and job cuts

The financial difficulties have led to a drastic job cuts of over 1,800 jobs and reduced production. In 2024, sales fell by 29 % to around 1.9 billion euros, while the operational result with an EBITDA was significantly negative of -300 million euros. This development meant that the own funds of Pierer Mobility AG eroded more than 50 % by December 2024 and the impeccable self -government was necessary.

In order to boost production again, the company has promised financial resources of 50 million euros from the shareholders. The complete utilization of four production lines in one-layer operation should be achieved within three months. In addition, an extraordinary general meeting (EGM) is planned for April 25, 2025 to discuss the restructuring plans. These plans also include a capital increase of EUR 150 million in cash and a non -able capital increase of 200 million euros. Existing shareholders have a subscription right to the capital increase, whereby Pierer Bajaj AG could possibly take over unobstructed shares that currently holds 49.9 % of KTM AG.

outlook for the future

The conversion of Pierer Mobility AG, which also includes brands such as Husqvarna and Gasgas, is a clear indicator of the challenges with which the company is confronted. The success of the restructuring plan could be crucial for the future market strategy of KTM, especially since control may be more powerful into the hands of Pierer Bajaj AG and Bajaj Auto. In addition, the uncertainty regarding the effects on the racing sports activities of KTM, especially in MotoGp.

Total KTM faces pioneering changes that reserve both opportunities and risks. The coming months will show how successfully the strategic decisions will be in relation to the restructuring and future control of the company.