Pierer Industrie AG has been in financial trouble for several months, and restructuring proceedings were opened on 25 November 2024. This will also have an impact on the Austrians’ commitment to sports.
The shock is great: to avoid the impending bankruptcy of Pierer Industrie AG, restructuring proceedings were opened in Europe. This gives companies at risk of bankruptcy but not yet bankrupt an opportunity to recover economically.
Pierer Group must submit a restructuring plan by 27 December 2024, which clearly states how the company’s continued existence should be protected and what steps will be taken to achieve this.
According to the Credit Protection Association in Austria, a request for a restructuring and personal control procedure should be submitted. According to Pierer Mobility, the financing of KTM AG requires a high three-digit amount. Meanwhile, subsidiaries KTM Components GmbH and KTM F&E GmbH are also said to be affected. The goal is to ensure the sustainability of the KTM Group.
Talks with major shareholders, banks and potential investors have been ongoing for months to plug the financial hole. While the net debt was still 300 million euros in 2022, it has risen to 1.5 billion euros this year. The share of Pierer Mobility temporarily fell to less than 8 euros on November 26, a year ago it was still more than 60.
In the light of such reports, the question arises about the sporting mission of the Pierer Group, which is well represented in the major racing series with its brands KTM, Husqvarna, GASGAS and MV Agusta on and off-road.
It has been clear since July that Husqvarna is withdrawing from road racing and was initially justified by sharpening its brand profile. But that’s only half the story.
“We started a major sports efficiency program a year ago to ensure that it continues,” said Hubert Trunkenpolz, deputy chairman of the Pierer Group, in an exclusive interview with SPEEDWEEK.com. “The focus in sports will again be on the main KTM brand. This alone leads to a large possibility of saving; when we go out on the road with Husqvarna, especially in America, and everything else is closed. But in KTM there is still pressure in the tank – the KTM brand cannot be imagined without car game.”
“Of course we have a responsibility if reserves have to be kept everywhere, and it also happens in sports,” emphasized the general manager. «Fortunately, we have very good partners, especially Red Bull, who support us not only as sponsors, but as partners to overcome this difficult time and maintain the Red Bull KTM program as much as necessary. Anticipate all the rumors: We will be racing MotoGP next year and next year. We have a contract with Dorna that we are fulfilling and that will only happen with the KTM brand. We have to grow the brand, we see sports as the most important marketing tool for the KTM brand, that’s why we’re doing it.”
“We are part of the company,” added KTM Motorsport Director Pit Beirer. “If we have a problem together, then motorsport should help. It goes without saying that we are now dealing with costs in motorsport as efficiently as possible and trying to bring sensible savings on board. To finally have money to further develop products at premium rates. This is the bottom line of the motorcycle and the whole company, which we are building a better motorcycle. This is an additional pressure in the difficult environment that the World Cup is at stake. That is why we will do our part.”
“This is a time to thank our sponsors and partners, we talk to them closely about what is going on,” said the former vice world motocross champion. “They’re all supporting us, it’s amazing. This is important right now – we’re proud of our partners and we need them more than ever to maintain stability for the next two years. Without them it wouldn’t work.”
Savings can be made in many areas, Beirer gives an example: “This year we brought our GASGAS hospitality in the driver’s seat, we will probably not see it again next year. Even outside of the resources you need to run successfully, there are things the money was spent on that was really fun and really fun. For a few weeks now, we have had the slogan that we no longer have ‘nice to have’ money, but we will do everything we can to make sure that the ‘must have’ money is available. There will be no more luxury in the area and the rest of the rooms will be double rooms. We start where it doesn’t hurt the racing driver on the track.”
