The serious financial crisis facing the Austrian group pushes its historic number one to resign: “It was not an easy decision.” Gottfried Neumeister takes over from him
Stefan Pierer, patron Of Ktm since 1992, he officially announced his resignation from the role of CEO of Pierer Mobilityparent company of the Austrian brand and other European manufacturers, first of all the glorious Mv Agusta. This epochal decision for Ktm comes at probably the most critical moment in its history, which sees it mired in a deep financial crisis from which, at least for the moment, it does not yet seem to have found a way out. Pierer inherits the helm of the company Gottfried Neumeisterwho joined the company last November with the role of Co-CEO and is now in charge of ferrying the Austrian giant out of the swamps.
three decades at the helm of KTM
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Stefan Pierer took over KTM over 30 years ago and then led it into aimpressive riseprogressively transforming it from a niche manufacturer to a global giant, first in Europe for motorcycles produced and with a showcase full of world titles in various disciplines. This seemingly unstoppable growth, which over the years has seen Ktm also acquire important brands such as Husqvarna, GasGas and, since last spring, Mv Agusta, however, has suddenly stopped in the last couple of years. Heavy drops in sales on both sides of the Atlantic, in fact, caused it to plunge into one debt crisis whose proportions have gradually taken on mammoth contours. In the order of 3 billion euros, according to numerous sources.
the handover
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“For me, Ktm has always been more than just a company: it has been and is a passion, a mission and a family. The decision to hand over the helm was not easy, but I am deeply convinced that Gottfried Neumeister, with his strategy, his foresight and his commitment, is the right choice to lead Ktm towards the future.” With these few words entrusted to a official press releasePierer has thus handed over the reins of his creation while maintaining a seat at the board of directors’ table, from where he will follow the developments of the situation. His resignation came on the eve of aimportant hearing at the regional court in Ried im Innkreis, Austria, during which the creditors’ new requests will be examined. “Stefan Pierer has created a unique company that reflects the passion and pioneering spirit of all his employees,” his successor said in the same statement, “and I see it as my job to preserve this legacy.”
The challenge for survival
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Gottfried Neumeister is a manager successful but does not come from the world automotive. Once the issues of the crisis had come to a head, he joined Ktm to support Pierer in the implementation of a painful restructuring plan which will further reduce the workforce in the historic headquarters of Mattighofen. And these are hundreds of jobs at risk. Despite the recent victory at the Dakar Rally, Ktm has confirmed the suspension of a large part of its sporting activities, still trying to safeguard, if not its future, at least its present in the MotoGP. In particular of its 4 prototypes in MotoGP and a large part of the Moto3 grid, whose fate appears increasingly precarious as time passes.
Pierer’s legacy
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However, from various quarters the alleged responsibilities of the administration are underlined by Piererguilty of having clumsily overestimated market demands after boom post-Covid leading to excessive production, not at all aligned with actual demand. The result was to find ourselves faced with enormous unsold motorcycle inventoryover 250,000 according to the most pessimistic estimates, with disastrous repercussions on budgets. The hot potato therefore now passes into the hands of Neumeister who, in addition to having to face a host of thousands of creditors, will have to put down heavy restructuring measures in an effort to ensure the company’s survival.
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