Pierer Mobility, the parent company of KTM, GASGAS, Husqvarna, and now MV Agusta, is implementing drastic measures to address ongoing financial struggles. After reporting weak results and withdrawing its financial guidance for the year, the company has announced further layoffs, scaled-back production, and plans to seek over €100 million in bridge financing.
In a statement, Pierer Mobility emphasized reducing motorcycle inventories at both the manufacturer and dealer levels by significantly cutting production volumes. This move is part of a broader effort to stabilize costs and sales at a more sustainable level, with a goal of achieving long-term competitiveness and profitability by 2025.
The company’s growth strategy in recent years, while ambitious, left it vulnerable when sales slowed in major markets like Europe and the U.S. Additional challenges, including customer dissatisfaction over camshaft wear issues in some models and financial losses from its bicycle ventures, have compounded the situation.
Executives remain cautious about the company’s future. While some speculate a potential sale or major restructuring, the immediate priority is addressing liquidity concerns to create a pathway toward recovery.
