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“Pit stop” in light of difficult business conditions
KTM has grown significantly over the past 30 years, but has been forced into bankruptcy proceedings after suffering sluggish sales of its luxury motorcycles in its main European market.
KTM released a statement from CEO Stefan Peeler and co-CEO Gottfried Neumeister in front of more than 5,000 employees announcing that they will implement a comprehensive restructuring plan to overcome current financial challenges and ensure KTM’s solid future. The official statement from the two men was posted on the company’s official YouTube channel.
In 1992, KTM had 160 employees and produced 6,000 motorcycles. Today, the company has grown to a maximum daily production capacity of 1,000 motorcycles. However, due to sluggish sales of luxury motorcycles in Europe, it has become clear that the company is facing a management crisis. To address this, KTM has initiated legal reorganization procedures through self-administration. The application was filed with an Austrian court on November 29th, with the aim of completing the procedure within 90 days.
CEO Stephan Peeler explained that a “pit stop” was necessary given the current situation.
“Over the past 30 years, we have grown to become the largest motorcycle manufacturer in Europe, with our products loved by millions of riders around the world. But we have now reached a point where we need to make a pit stop to look towards the future. The KTM brand is my life’s work and I will fight for it.”
Gottfried Neumeister will join the Executive Committee as co-CEO in September 2024. Neumeister, who will be working on the revitalization project together with CEO Peeler, commented as follows:
“The enthusiasm of our employees is perhaps KTM’s most important advantage. Their passion is synonymous with KTM’s world-class performance. We will continue to build motorcycles that are reliable and robust enough for any race, on any terrain.”
“Now it’s time to make KTM a robust company, ready for the future, so we can refocus on what we do best: building the coolest motorcycles in the world.”
