After acquiring the Austrian brand KTM, the Pierer Mobility Group became the number 1 European manufacturer of motorized two-wheelers, with 190,293 motorcycles sold in the first half of 2023, representing a 16.5% increase in sales volume compared to the same period in 2022. The Pierer Mobility Group is determined to further increase its position and sales volume for 2024, and therefore, top management has decided to sell the bicycle brands R Raymon and Felt, while simultaneously promoting the production of Husqvarna and GasGas e-bikes.
This decision was made to further focus activity on the four motorcycle brands that make up the Group: KTM, GasGas, Husqvarna, and MV Agusta. Additionally, the Pierer Mobility Group will cut 300 jobs in its factories in Austria and transfer production to its partnerships in India with Bajaj, and in China with CFMOTO. The relocation will also include some R&D activities.
This measure is based on a thorough analysis of the economic and financial situation in Europe, with 2024 expected to show a contraction compared to 2023, especially since the European Central Bank confirmed it will maintain interest rates at their current level. This situation has already forced the Group to reduce its dealership network to make it more efficient.
Due to its solid liquidity position, the Group helped a certain number of dealers to reduce the burden of high bank fees, also assisting some suppliers facing financial problems. This was possible thanks to the Group’s solid liquidity position. Therefore, the board of directors made the decision to strengthen the core business, making 2024 a year of consolidation.
On the other hand, the decision to relocate part of the production activity to Austria seemed logical, given the fact that the cooperation with CFMOTO seemed very positive, to the point that the production of the 790 Duke and 790 Adventure mid-range models has already been relocated to China. This not only takes advantage of lower production costs, but also reinforces KTM’s image in the markets of the Far East, which continue to grow faster than any other.
