Bajaj Rescues KTM - Pierer Steps Down
It's now official - €525 Million Secures Continuation
PIERER Mobility announces successful funding commitment from Bajaj – KTM remains in the race, the restructuring quota is met on time, but the deck is 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 on the financing of the 30% 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 needed to fulfill the restructuring plans.
Specifically, €450 million flows directly as a loan to KTM AG. An additional €150 million goes to PIERER Mobility AG, which will forward the remaining quota payments to the affected companies. The crucial point: The money is there the threat of insolvency appears to be averted.
Stefan Pierer to Leave His Own AG by June 2025
In addition to financial resolution, there's also personnel movement. Stefan Pierer, the long-standing face of the brand, will step down from the board of PIERER Mobility AG, a company bearing his name, once the restructuring process concludes in June 2025. Having already vacated the CEO position at KTM in March, this marks the end of an era where the Pierer name was inseparably linked to KTM's resurgence.
Verena Schneglberger-Grossmann, who has been with the company since 2015, is appointed as the new board member and will take the helm alongside CEO Gottfried Neumeister. This signals a clear shift in both personnel and strategy.
Site Question 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 roughly 3,000 employees remain uncertain. Production is still at a standstill. Whether the new funds will suffice to restore supply chains and manufacturing to their usual levels remains to be seen. Trust among suppliers and dealers in the once-flagship operation is noticeably shaken for now. However, hope for recovery persists.
Another issue: The balance of power in the ownership structure could shift. Bajaj's substantial financial contribution is likely to have political and strategic impacts in the near future. The Indian motorcycle manufacturer Bajaj plans to take over sole control of KTM's parent company, Pierer Mobility. To this end, a call option agreement has been concluded with Pierer Industrie AG, Stefan Pierer's industrial holding company, as announced by the company on Thursday evening.
This agreement grants Bajaj the right to indirectly gain control over Pierer Mobility by the end of May 2026 at the latest. However, the execution of the control change is still subject to the necessary regulatory approvals. KTM remains tight-lipped about this in public.
Author
POKY