Pierer Mobility Restructures Supervisory Board Following KTM Bankruptcy

Pierer Mobility, the publicly traded parent company of KTM, has undergone a significant reorganization of its supervisory board following the conclusion of its subsidiary KTM's bankruptcy proceedings. The former chairman, Stephan Zöchling, along with his deputy Rajiv Bajaj and board member Friedrich Roithner, will be stepping down from their positions. Joining the board are Dinesh Thapar, Chief Financial Officer of Bajaj Auto Limited, and attorneys Ernst Chalupsky and Ewald Oberhammer.

The insolvency of KTM has been officially resolved, with Bajaj Auto International Holdings B.V., a Dutch subsidiary of the Indian conglomerate Bajaj, providing EUR525 million to settle creditor claims. In exchange, and contingent upon regulatory approval, Bajaj aims to secure a 100% ownership stake in Pierer Bajaj, the joint venture between Stefan Pierer and the Bajaj family, which currently holds 74.9% of Pierer Mobility.

Stephan Zöchling had only recently been appointed as chairman in January. There were discussions about him potentially becoming an investor, but reports indicate a fallout between him and Stefan Pierer, who has distanced himself from operational leadership at KTM and is expected to step back from his role at Pierer Mobility this year.

During the recent shareholders' meeting, CEO Gottfried Neumeister outlined several factors that contributed to the company's financial difficulties, including unprofitable business segments like Pierer New Mobility and MV Augusta, extended dealer financing of up to 360 days, rising production costs, and high inventory levels. An unstable financial structure that relied heavily on current accounts was also cited as a reason for the insolvency, as reported by the Investors' Association (IVA).

As part of the restructuring plan, production volumes and workforce in Mattighofen have been scaled back, inventory levels have been reduced, and operations in the bicycle segment have been downsized. The sale of MV Augusta is anticipated to close this summer, while the activities related to the X-Bow are being transferred to an international investment group. Neumeister noted that inventory levels are decreasing more effectively than originally expected, projecting a positive EBIT starting in 2027.

The IVA has requested individual discharge for the board and supervisory board members, with significantly less opposition for CEO Neumeister compared to his predecessor, Stefan Pierer. Out of 2.17 million votes cast, approximately 489,000 opposed Pierer's discharge, while Neumeister faced only around 85,450 dissenting votes out of 1.8 million valid votes. IVA board member Florian Beckermann suggested that the results were predictable given Pierer's involvement in the bankruptcy.

The shareholders' meeting revealed few surprises, with Beckermann describing it as a routine exercise with limited new information. He emphasized that the company must now focus on its future and noted that the legal framework for Bajaj's further investment remains unresolved.