KTM’s Financial Struggles Unfold
KTM’s situation has reached a crisis point, with its parent company, Pierer Mobility, revealing a preliminary loss of €1.28 billion before tax for 2024. This staggering shortfall signifies a drastic shift from previous years, underlining the company’s urgent need to restructure operations. As sales plunged 29.4% from €2.66 billion to €1.88 billion, equity plummeted to €199 million in the red, raising alarms about the future of this iconic motorcycle manufacturer.
Production Halts and Layoffs Impact Growth
Production at KTM’s Mattighofen plant faced significant interruptions, ceasing since December 2024. Thanks to a €150 million cash injection from Bajaj, operations resumed mid-March, but the road to recovery is long. With inventory levels reduced by 18% last year through strategic cutbacks, the workforce has also seen drastic reductions. As of December 2024, KTM laid off 874 employees, with an additional 750 cuts in early 2025, bringing the total losses to over 1,850 jobs—a bitter reality for a company striving for revitalization.
Market Challenges and Future Prospects
KTM’s motorcycle sales have suffered a 21% decrease, selling just 292,497 units last year, with the European market still constituting the largest segment at 38%. The company plans to exit the bicycle market entirely by 2025, moving away from brands like Husqvarna and GasGas, and reassessing its stake in Felt. The situation remains critical as Pierer Mobility seeks a €600 million investor lifeline crucial for ensuring long-term viability. Without decisive action and stakeholder support, KTM may face further operational hurdles ahead.
