Pierer Mobility Group, owner of KTM, Husqvarna, and GasGas, has decided to cut 300 jobs from its Austrian assembly lines and move additional production and some R&D jobs to China.
After acquiring the original Austrian KTM brand, the Pierer Mobility Group has become the leading European manufacturer of powered two-wheelers, achieving the sale of 190,293 bikes in the first half of 2023, marking a 16.5 percent increase compared to the same period in 2022. Intent on solidifying its position and boosting sales in 2024, the top management has decided to divest the R Raymon and Felt bicycle lines while emphasizing the production of Husqvarna and GasGas e-bicycles.
This strategic move aims to sharpen the focus on the four motorcycle brands within the Group: KTM, GasGas, Husqvarna, and MV Agusta. Additionally, the Pierer Mobility Group plans to streamline operations by cutting 300 jobs at its Austrian production facilities, relocating production to partnerships in India with Bajaj and in China with CFMoto. This relocation will also encompass certain research and development activities.
The decision is grounded in a thorough analysis of the economic and financial landscape in Europe, anticipating a contraction in 2024 compared to 2023, particularly as the European Central Bank has confirmed the maintenance of current interest rates. To enhance efficiency, the Group had previously optimized its dealer network.
Leveraging its robust liquidity, the Group has supported dealers by alleviating high banking rates and assisted struggling suppliers financially. This financial strength has prompted the board of directors to prioritize the consolidation of the core business, making 2024 a year of consolidation.
Simultaneously, the decision to relocate production from Austria aligns with the positive collaboration with CFMoto, especially evident in the successful transfer of production for mid-displacement models 790 Duke and 790 Adventure to China. This not only capitalizes on lower production costs but also reinforces the KTM brand’s presence in Far East markets, which are experiencing faster growth than others.
Pierer Mobility Group and CFMoto have outlined plans to double their collaborative production activity from 50,000 to 100,000 units. The board of directors expresses a reasonable level of optimism, anticipating that sales in the upcoming year will match the levels achieved in 2023, maintaining an EBIT margin ranging from 5 to 7 percent. To fortify the Group’s profitability, management intends to implement cost-cutting measures in the double-digit million range during the 2024 financial year.
Regarding MV Agusta, Pierer Mobility Group has provided assurance to the workforce in Schiranna, expressing strong confidence in one of the most iconic brands in motorcycling history. The recently unveiled MV Agusta LXP Orioli adventure model, featuring a new 900cc three-cylinder engine, is anticipated to be a significant success in the market, building on its positive reception at EICMA last month. In an effort to bolster MV Agusta’s global presence, its models will be distributed through the Pierer Mobility Group dealer network.
The call option awarded to KTM AG, contingent upon the annual financial statements as of December 31, 2025, allowing the acquisition of a majority stake in MV Agusta, is set to be activated in spring 2026. This momentous occasion marks a significant turning point for the Italian legend as it emerges from years of financial uncertainty.