Image: Supplied.

It’s been formally announced that longtime KTM leader Stefan Pierer is stepping down and Gottfried Neumeister will become the CEO of Pierer Mobility AG and KTM AG, as the Austrian company aims to strategically position itself into the future.

The group has been facing a severe financial crisis in recent months – sitting at over $4.5-billion (€2.9 billion) in debt – and remains in self-administration while navigating a critical restructuring process.

After taking control of KTM AG in 1992, Pierer is being replaced as CEO in the company that he is still currently the majority shareholder of, and he will continue on the group’s executive board. The 68-year-old Austrian will support Neumeister as co-CEO during its restructure.

“For me, KTM was always more than just a company – it was and is a passion, a mission and a family,” Pierer explained. “The decision to hand over the helm was not an easy one. I am deeply convinced that Gottfried Neumeister, with his strategic foresight and commitment, is the right choice to lead KTM into the future.”

Former airline executive Neumeister joined KTM in September as co-CEO and will next take charge of Piere Mobility AG and KTM AG altogether. Figures released have revealed that KTM AG suffered a 29 percent decrease in revenue last year, since cutting production by 26 percent to relieve inventories by 40,000 bikes, and more than 1800 employees have been made redundant.

“Stefan Pierer has created a unique company that reflects the passion and pioneering spirit of all employees,” Neumeister commented. “I see it as my task to preserve this legacy and at the same time to break new ground. KTM stands for courage, innovation and passion – values that we will continue to live by and carry into the future. Together with our team, we will continue to strengthen KTM and set new standards to build the best motorcycles in the world.”

It’s also been announced that Pierer Mobility AG has ‘received several offers from investors as part of the investor process structured by Citigroup Global Markets Europe AG’. This will importantly enable KTM AG and its insolvent subsidiaries to cover at least the statutory minimum of 30 percent of its debts to creditors, as required under Austrian insolvency law.