In an effort to confront growing financial challenges, KTM AG has announced it will enter self-administration as part of a significant company restructuring, with CEO Stefan Pierer telling staff that the brand “is my life’s work, and I will fight for it”.
The Austrian bikemaker, which has grown to a production capacity of up to 1000 motorcycles per day, will apply to enter self-administration from Friday, 29 November, with the aim to conclude the process within 90 days.
“Over the past three decades, we have grown to become Europe’s largest motorcycle manufacturer,” Mr Pierer told KTM’s more than 5000 employees.
“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.”
As of September, Gottfried Neumeister has joined KTM AG’s executive board as co-CEO.
“The enthusiasm of our employees is our most important competitive advantage,” said Mr Neumeister.
“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.”
It has been rumoured that KTM may be eyeing a buyout from Indian manufacturing giant Bajaj Auto, however, INFO MOTO was unable to verify this information at time of writing.
Editorial Director at infomoto.com.au. Loves Rally bikes.
