Bajaj Rescues KTM - Pierer Steps Down
It's Official - €525 Million Secures Continuation
PIERER Mobility announces successful funding commitment from Bajaj – KTM stays alive, the restructuring quota is met on time, but the cards are being reshuffled!
Bajaj Delivers Over Half a Billion Euros to Meet Restructuring Quota
Just hours before the deadline, PIERER Mobility AG confirms: Bajaj Auto International Holdings B.V. is taking over the financing of the 30-percent quota agreed upon by the creditors of KTM AG, KTM Components GmbH, and KTM Research & Development GmbH in February. This secures a total of 525 million euros needed to fulfill the restructuring plans.
In detail, 450 million euros will flow directly as a loan to KTM AG. An additional 150 million euros will go to PIERER Mobility AG, which will then distribute the remaining quota payments to the affected companies. The crucial point: the money is here the looming insolvency now seems averted.
Stefan Pierer to Leave His Own AG by June 2025
Alongside financial resolution, personnel changes are also underway. Stefan Pierer, the long-standing face of the brand, will step down from the board of PIERER Mobility AG, of which he was the namesake, upon the completion of the restructuring process in June 2025. Having already stepped down from his CEO role at KTM in March, this marks the definitive end of an era where the Pierer name was inseparably linked with KTM's resurgence.
Verena Schneglberger-Grossmann, who has been with the company since 2015, will be appointed as the new board member and will steer the course alongside CEO Gottfried Neumeister. This marks a clear signal of both a personnel and strategic overhaul.
Location Issue Remains Critical – Who's in Charge at KTM Now?
Even though solvency is now secured, the implications for the production site in Mattighofen and its approximately 3,000 employees remain uncertain. Production is still at a standstill. Whether the new funds will be enough to restart supply chains and manufacturing is yet to be seen. Confidence in the once-flagship operation has been deeply shaken.
Another issue that cannot be swept under the rug: the power dynamics in the ownership structure might shift. Bajaj's dominant financial contribution is likely to have political and strategic impacts in the near future. Publicly, there's silence on this matter but it would be naive to think that €525 million come without strings attached.
Author
POKY