P1racenews AI automatic summary:
Stefan Pierer, the CEO of KTM and its eponymous parent company Pierer Mobility, is being replaced
Stefan Pierer, the CEO of KTM and Pierer Mobility, is stepping down from his role and will be replaced by board member Gottfried Neumeister, marking a significant reshuffling at KTM to avoid bankruptcy. Pierer, the investment banker who transformed KTM into one of Europe’s largest motorcycle manufacturers, is relinquishing control amidst the company’s €2.9 billion debt. Pierer expressed his emotional attachment to KTM but believes Neumeister is the right choice to lead the company forward with strategic vision. While Pierer will remain as co-CEO for the interim, KTM has laid off 1800 employees, reduced production by 26%, and decreased its inventory by 40,000 bikes due to a 29% revenue decrease in 2023. On the positive side, there are offers from investment groups, including Citigroup, to acquire 30% of the company’s shares, with eyes on a potential expanded role for Indian manufacturer Bajaj. As KTM faces a crucial meeting for its survival, discussions about the MotoGP team’s future loom, including the possibility of a withdrawal from the grand prix racing arena.
