KTM On The Verge Of Bankruptcy; Announces Self-Administration

Tough times for Pierer Mobility AG which currently owns KTM, Husqvarna, GasGas and MV Agusta two-wheeler brands

By car&bike Team

1 mins read

Published on November 28, 2024

Highlights

Pierer Mobility AG seeking for cash influx
Files for restructuring of the business in a bid to prevent insolvency
Possibility of KTM being purchased from Pierer is a likely scenario

KTM recently launched a bunch of big bikes along with a few motocross and enduro bikes in India, only suggesting that the brand is doing well in terms of business matters. Unfortunately, it’s quite the opposite as the company has filed for self-administration to save the company from insolvency. KTM and the other two-wheeler brands Husqvarna, GasGas and recently acquired MV Agusta come under the Pierer Mobility AG group which is currently facing serious financial crises that have put Europe’s largest motorcycle manufacturer into a tumble.

Also Read: KTM 890 Duke R, 890 Adventure R, 1390 Super Duke R And More Launched In India

According to the announcement by brand CEO Stefan Pierer and co-CEO Gottfried Neumeister, the company will undergo a self-administration and strategic resurrecting plan to bring the company back on track in the next 90 days. This means there will be hard decisions to be made with regard to the brands owned, employees, and other administration departments. It is also possible that the company might consider halting the production line for some time to assess the costs and inventory, according to reports.

Also Read: KTM Faces Financial Trouble; Seeks Funding Of 100 Million Euros

Furthermore, while Stefan and Gottfried will continue to be in control of the brand during the said period, a restructuring administrator appointed by the court will be present to help with the decisions and changes implemented. KTM’s current debt this year rose to a staggering 1.5 billion Euros, and one of the chief reasons behind it is the recent acquisition of the MV Agusta brand. KTM AG has been seeking a substantial cash influx leading to a couple of hundred million dollars to stay afloat during these tough times.