Stefan Pierer, the emblematic CEO of KTM and its namesake company Pierer Mobility, is handing over the reins to the head of the KTM Group. The Austrian will hand over control of his company to board member Gottfried Neumeister in the first major reshuffle in KTM's months-long battle to avoid bankruptcy.
KTM has always been more than just a company, it is a passion, a mission and a family. The decision to hand over the helm was not an easy one. – (Stefan Pierer)
Pierer is an investment banker who took control of the ailing Austrian company in the early 90s and went on to transform it into one of Europe's largest motorcycle manufacturers. It was also under Pierer's leadership that the company racked up €2,9 billion in debt.
“For me,” he said in a company statement, “KTM has always been more than just a company – it was and still is a passion, a mission and a family. 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.”
Pierer will remain co-CEO of Neumeister, a former aviation executive who launched low-cost airline Niki Air in 2003 with three-time Formula 1 world champion Niki Lauda.
The group also confirmed that it has so far laid off 1.800 employees amid a 29% drop in revenue compared to 2023, and that it has cut production by 26% and reduced inventory by around 40.000 units.
There is some good news, however, with offers from a number of investment groups led by US financial giant Citigroup to acquire around 30% of the company's shares currently held by Pierer.
One party interested in increasing its stake in KTM is Indian manufacturer Bajaj, which through its strategic relationship with the Austrian company already owns the remaining 49,9% of the shares not held by Pierer Mobility.
The news comes on the eve of another key deadline for KTM's survival, as directors held a meeting on Friday to determine the next steps to be taken to save the company.
While some parties involved in the current restructuring plan at KTM would like to see the Austrian manufacturer withdraw from the MotoGP championship, as they consider it too financially greedy in the current situation, in Mattighofen they are fiercely defending the involvement of orange machines at the highest level of competition.
