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ADV NewsStefan Pierer Steps Down As KTM CEO, Creditors File €2.2B In Claims

Stefan Pierer Steps Down As KTM CEO, Creditors File €2.2B In Claims

There is a new top boss at KTM as the company tries to avoid bankruptcy.

Published on 01.24.2025

KTM’s financial troubles continue to manifest as CEO Stefan Pierer, who spent three decades transforming the company from a modestly successful European brand into the global manufacturing powerhouse we know today, steps down. His departure underscores the gravity of challenges facing KTM’s parent company, Pierer Mobility Group, which is currently navigating a court-supervised restructuring process.

Taking over the leadership role is Gottfried Neumeister, who joined the company in September 2024 as co-CEO, a hire that coincided with the company’s declaration of self-administration, a legal process similar to a Chapter 11 bankruptcy in the United States that allows for management to retain control of operations while working under court supervision to restructure mounting debts and avoid bankruptcy.

The company began self-administration proceedings on November 29, 2024, which included a 90-day grace period to craft a reorganization plan that satisfies creditors and ensures its survival. Pierer Mobility has enlisted Citigroup, a leading global bank and investment firm to assist in its financial restructuring efforts.

Stefan Pierer steps down as KTM CEO
Stefan Pierer has handed over the top role of CEO of PIERER Mobility AG and KTM AG to Gottfried Neumeister and will continue as Co-CEO during the restructuring process.

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The CEO transition took place amidst intense pressure from the company’s creditors, just days ahead of a January 24, 2025, creditors’ meeting held at a regional court in Austria. During the hearing, KTM’s financial situation, as well as its actions to date were reviewed, while representatives of the company’s creditors and employees filed claims amounting to nearly €2.2 billion. 

As of yesterday’s meeting, there were 3,534 claims against KTM AG, including 2,347 from employees and 1,187 from other creditors. While claims amount to €2.18 billion, €1.66 billion has so far been approved by an oversight committee.

Stefan Pierer steps down as KTM CEO
“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,” says Stefan Pierer.

Furthermore, subsidiary KTM Components GmbH, which makes components for Pierer brands, has received 739 claims totaling nearly €81 million, of which claims worth €48.8 million have been recognized. At KTM Forschungs und Entwicklungs GmbH, KTM’s research and development organization, there are now 1,162 claims amounting to nearly €112 million, of which applications for reimbursement worth €41.4 million were accepted.

Such a stunning amount of debt seems virtually insurmountable, though unsurprisingly the stance of KTM’s executives, including Pierer, who will remain on the Executive Board as the co-CEO during the reorganization process, remains positive.

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

Stefan Pierer steps down as KTM CEO

Neumeister, who holds a degree in International Business Administration from the University of Vienna, co-founded the airline FlyNiki with Formula One legend Niki Lauda and later held executive roles at catering company DO & CO AG, an industry giant, where he managed global operations and financial challenges.

“Stefan Pierer has created a unique company that reflects the passion and pioneering spirit of all employees. I see it as my task to preserve this legacy and at the same time to break new ground,” Neumeister says of his vision for KTM and parent company Pierer Mobility, which also holds Husqvarna and GasGas as assets. Meanwhile, the company is actively seeking to sell its 50.1% majority stake in MV Agusta in an effort to generate cash and refocus its attention on its core brands.

The next month will be crucial for the new CEO as the company must come up with an ultimate restructuring plan by February 25th, the day creditors will again convene at a regional court in Austria for a final vote on that proposal. This plan must demonstrate how KTM intends to repay at least 30% of its outstanding debts within two years—a crucial benchmark to avert insolvency.

Stefan Pierer steps down as KTM CEO

Pierer Mobility also announced that it doesn’t expect to file its 2024 annual financial report until late April due to the ongoing reorganization. However, the company released preliminary figures that offered a glimpse into the current situation.

According to the report, revenue for 2024 is expected to total approximately €1.9 billion, a decline of 29 percent from €2.7 billion in 2023. Operating losses are projected to result in a negative EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of around €300 million, with additional impairments and allowances further impacting Earnings Before Interest and Taxes (EBIT). Liquid cash flow is expected to remain significantly negative in the high triple-digit millions, and net debt is projected to increase.

As part of its restructuring plan, the group has laid off more than 1,800 employees and deliberately reduced motorcycle production by 26 percent, scaling output back to 230,000 units. Thanks to this, a global inventory backlog was lessened by approximately 40,000 units—an 18 percent decrease—while sales to dealers fell 21 percent year-over-year to 292,497 motorcycles. 

Despite this, Pierer reports that consumer demand has remained strong, with dealers selling 268,000 motorcycles to customers, consistent with 2023 levels.  Dealer discounts and incentives have further facilitated the move of stagnant product, a situation KTM said was caused by post-pandemic economic irregularities

Stefan Pierer steps down as KTM CEO
Amid KTM’s restructuring process, the company continues to roll-out all-new models for 2025, like the recently-announced 390 Enduro R.

The report went on to boast about KTM’s recent factory race team successes, including Daniel Sanders’ blowout victory in Dakar 2025’s Rally GP class, and Edgar Canet’s triumph in the Rally2 category. Pierer Mobility brands KTM, Husqvarna and GasGas have also dominated for three consecutive victories in the Enduro World Championship, and two Supercross season openers. 

Additionally, and despite earlier reports that KTM was nixing its MotoGP effort, the program appears set to continue, with the company planning to unveil its new MotoGP bike on January 30, 2025

With the pivotal February 25th hearing deadline looming, all eyes are on Gottfried Neumeister and his ability to deliver a viable path forward while keeping creditors on board, something the new CEO feels is well within the realm of possibility.  


“KTM stands for courage, innovation and passion—values that we will continue to live by and carry into the future,” he said. “Together with our team, we will continue to strengthen KTM and set new standards to build the best motorcycles in the world.”

Author: Jamie Elvidge

Jamie has been a motorcycle journalist for more than 30 years, testing the entire range of bikes for the major print magazines and specializing in adventure-travel related stories. To date she’s written and supplied photography for articles describing what it’s like to ride in all 50 states and 43 foreign countries, receiving two Lowell Thomas Society of American Travel Writer’s Awards along the way. Her most-challenging adventure yet has been riding in the 2018 GS Trophy in Mongolia as Team AusAmerica’s embedded journalist.

Author: Jamie Elvidge
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MaXX
MaXX
January 29, 2025 10:55 am

Diversify your products! We need a full line of supersport bikes, A TV’s and UTV’s. Reduce production to build value.

ph001c
ph001c
January 29, 2025 4:41 pm

Would be helpful if the pictures had captions to know who is who.

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