KTM Unveils Plan to Overcome Financial Challenges and Strengthen Future

Zach Newberry
·2-min read

KTM is making changes to deal with financial challenges and secure its future. CEO Stefan Pierer and Co-CEO Gottfried Neumeister said the company has grown greatly but is now facing some tough times.

On November 29, KTM will start a legal process to reorganize, aiming to finish in 90 days. Pierer calls it a "pit stop for the future."

Jason Weigandt from RacerX online spoke with Tom Moen in KTM press about the situation, stating, "Main thing to know, KTM, Husqvarna and GasGas will go racing in 2025 just as planned and expected. Today's restructuring announcement in Europe does not impact KTM North America."

Here is the press release from KTM:

KTM ANNOUNCES STRATEGIC RESTRUCTURING PLAN

Austria – 26 November, 2024 – KTM CEO Stefan Pierer and Co-CEO Gottfried Neumeister today addressed the company's more than 5,000 employees, unveiling a comprehensive plan to navigate the current financial challenges and ensure a robust future for KTM.

Making KTM robust for the future

Stefan Pierer, CEO of KTM AG: “Over the past three decades, we have grown to become Europe's largest motorcycle manufacturer. We inspire millions of motorcycle riders around the world with our products. Now we are taking a pit stop for the future. The KTM brand is my life's work, and I will fight for it.”

KTM, which has grown from 160 employees and a production volume of 6,000 units in 1992 to a capacity of up to 1,000 motorcycles per day, is now facing significant hurdles. To address these, KTM will initiate a legal restructuring proceeding with self-administration. The application will be submitted on Friday, 29 November, with the goal of concluding the process within 90 days.

Since September 2024, Gottfried Neumeister has joined the Executive Board as Co-CEO. Stefan Pierer: “Gottfried Neumeister has brought impressive experience and a breath of fresh air and has made a significant contribution to addressing the current situation. I am convinced that together we will get the company back on track for success.”

Gottfried Neumeister, Co-CEO of KTM AG: “The enthusiasm of our employees is our most important competitive advantage. Their passion is the reason why KTM is globally synonymous with peak performance. We build our motorcycles reliably and robustly for every race, for every terrain. Now it’s about making the company robust. Robust for the future. So that we can quickly focus again on what we do best: building the coolest motorcycles in the world.”

Pierer and Neumeister emphasized the importance of the employees' commitment and support during this period. "Together, we have made KTM a success story, and together, we will carry KTM into the future," they stated.

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