P1racenews AI automatic summary:
KTM has announced that it will enter a 90-day self-administration period to restructure the company amid its current financial difficulties. The Pierer Mobility group has decided to pause production of its bikes in January and February 2025 and it has already laid off hundreds of staff members. KTM was reportedly seeking at least 100 million […]
The Pierer Mobility group has decided to pause production of its bikes in January and February 2025 and has already laid off hundreds of staff members. KTM was reportedly seeking at least 100 million euros to continue its operations beyond 2024, a figure that did not meet the required funding target. “Redimensioning the group should not only secure the continued existence of the KTM Group in the long term, but also create the basis for emerging stronger from the proceeding,” said Pierer Mobility in a statement. A redimensioning of production should lead to a gradual adjustment in excess stock at KTM and its dealers over the next two years, resulting in a reduction in operating performance at the Austrian sites totaling over one billion euro in the years 2025 and 2026. Consequently, for the current 2024 financial year, the company expects a negative annual net result in the very high three-digit million range due to the aforementioned reasons. Pierer Mobility group are adamant about continuing its MotoGP endeavors despite the company’s restructuring.