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KTM AG has outlined plans to enter a self-administration procedure that will see the Austrian company undertake major restructuring over the next three months, aiming to ‘ensure a robust future’ amid immense financial difficulties.

Longtime CEO Stefan Pierer and co-CEO Gottfried Neumeister today addressed the company’s more than 5000 employees, unveiling a comprehensive plan to navigate the current financial challenges that have made headlines globally in recent months.

KTM is a wholly owned subsidiary of Pierer Mobility AG, which also operates the Husqvarna, GasGas, MV Agusta and WP brands, formally announced its strategy today, just weeks after revealing that it was ‘working on securing the financing of KTM AG, in particular on a bridge financing in the three-digit million range’. Management has conceded that it does not expect to be able to secure the required finances soon enough.

“Over the past three decades, we have grown to become Europe’s largest motorcycle manufacturer,” Pierer explained. “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.

“Gottfried Neumeister has brought impressive experience and a breath of fresh air and has made a significant contribution to addressing the current situation. I am convinced that together we will get the company back on track for success.”

KTM, which has grown from 160 employees and a production volume of 6000 units in 1992 to a capacity of up to 1000 motorcycles per day, is now facing significant hurdles and will reduce production in order to correct excess stock over the next two years.

To address these, KTM will initiate a legal restructuring proceeding with self-administration, where the application will be submitted on Friday, November 29, with the goal of concluding the process within 90 days.

“The enthusiasm of our employees is our most important competitive advantage,” added 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.”

Pierer and Neumeister emphasized the importance of the employees’ commitment and support during this period: “Together, we have made KTM a success story, and together, we will carry KTM into the future.”