PIERER Mobility AG

KTM Owner to Take € 1bn Hit as Bankruptcy Protection Filing Triggers "Redimension of Production" 

PIERER Mobility AG is finally giving way to the inevitable outcome of the increasingly bad flow of news that has been coming out of the Austrian business empire of Stefan Pierer since this time last year, with the wholly owned KTM AG subsidiary of PIERER Mobility AG filing for an Austrian equivalent of bankruptcy protection.

In a November 29 2024 application for 'judicial restructuring proceedings' with what is termed 'self-administration' of its on-going trading and restructuring initiatives, it will buy itself the 90-days it says it needs. That time is needed in order to raise the "high three-digit million figure'" it requires to protect itself from its creditors. Failure to do so would ultimately result in a winding-up process that would see it facing a liquidation of its assets and, no doubt, a fire-sale of intellectual properties that would be much coveted in Asia. 

In the byzantine corporate structure that is downwind of Stefan Pierer, KTM AG is the business doing the filing, and the business where the financing is required. The management will have three months to find a 'self-administered' way forward - essentially a variation on the theme of a 'pre-pack' solution, albeit one devised under legal cover.

The PIERER Mobility AG executive board stated in advance of the filing that it was the "Executive Board of KTM AG" that had decided to make the filing, but this is all 'in-house' so details of who actually has ownership of the application for the "initiation of judicial restructuring proceedings with self-administration over the assets of KTM AG and its subsidiaries" is being seen as a procedural moat to protect other trading divisions and shareholdings.

"The proceedings give the opportunity to continue to manage the assets under supervision and to reorganize the KTM Group independently. All other subsidiaries of KTM AG, in particular all sales companies, are not affected." Which in and of itself is patently misleading - of course the outcome affects them, even if not in the ways that a filing would interpret that.

Recently appointed KTM AG Co-CEO Gottfried Neumeister (left) with Stefan Pierer: "Over the past three decades, we have grown to become Europe's largest motorcycle manufacturer. Now we are taking a pit stop for the future. The KTM brand is my life's work, and I will fight for it."

The aim of the proceedings is to agree a reorganization plan with the creditors within 90 days, and in a new generation of 'right sizing' corporate jargon 'redimensioning' of the group is the phrase being used. This is an attempt to try and make everyone think that 'all is okay, it is just a pesky technicality', but it isn't. People are going to lose jobs. Dealers are going to lose their brand investments and all involved will lose money one way or another.

The PIERER Mobility AG release states that the process "should not only secure the continued existence of the KTM Group in the long term, but also create the basis for emerging stronger from the proceeding." Meanwhile, MV Agusta? Will more good money be sent to die on that mountain top?

"A 'redimensioning' of production should lead to a gradual adjustment in excess stock at KTM and its dealers over the next two years. This will result in a reduction in operating performance at the Austrian sites totalling over € 1bn in the years 2025 and 2026."

Having been on the receiving end of 'channel stuffing' and over-trading there are no doubt many hundreds of dealers worldwide who will not be impressed with that time scale. Get it done!

"The restructuring process will result in additional potential losses, for example due to one-off expenses such as necessary write-downs (e.g. for capitalized development costs) and costs for staff reductions as well as the shortfall in fixed costs due to the reduced operating performance and other costs arising from the restructuring process. 

"Consequently, for the current 2024 financial year, the company expects a negative annual net result in the very high three-digit million range."

In a subsequent release, PIERER Mobility AG has described it as KTM AG taking a "pit stop" for the future as KTM AG implements "restructuring measures" - the management of KTM AG having assumed that "it will not be possible to secure the necessary interim financing in a timely manner." 

Stefan Pierer, who is Co-CEO of KTM AG as well as of his eponymous holding company is quoted as saying: "Over the past three decades, we have grown to become Europe's largest motorcycle manufacturer. We inspire millions of motorcycle riders around the world with our products. Now we are taking a pit stop for the future. The KTM brand is my life's work, and I will fight for it."

In September 2024 Pierer fired four of the KTM AG board members from their executive posts - Florian Kecht, COO Rudolf Wiesbeck, Stefan Pierer's son Alex, and Hubert Trunkenpolz, grandson of KTM founder Hans Trunkenpolz (the 'T' in KTM).

Instead, Stefan Pierer had hired Gottfried Neumeister as a newly minted Company Doctor and advisor, Executive Board member and Co-CEO. Stefan Pierer states: "Gottfried Neumeister has brought impressive experience and a breath of fresh air and has made a significant contribution to addressing the current situation. I am convinced that together we will get the company back on track for success."

For his part, Neumeister is quoted as saying: "The enthusiasm of our employees is our most important competitive advantage. Their passion is the reason why KTM is globally synonymous with peak performance. We build our motorcycles reliably and robustly for every race, for every terrain. Now it's about making the company robust. Robust for the future. So that we can quickly focus again on what we do best: building the coolest motorcycles in the world."

For the success of the restructuring proceedings, a restructuring plan must be agreed upon with the creditors. Stefan Pierer is further quoted as stating: "The core shareholders stand by KTM and PIERER Mobility and its stock market listing. The goal is clear: KTM should emerge stronger from this difficult time."

The Pierer/KTM corporate structure was theoretically realigned (streamlined is not quite the right word for it) to better accommodate the position of Bajaj Auto as co-owner of the KTM AG motorcycle manufacturing and other PIERER Mobility AG owned operations in 2020. 

However, the structure has morphed since then. Per a further PIERER Mobility "simplified presentation" corporate structure chart issued in November 2024, Pierer Industrie AG owns 50.1% of Pierer Bajaj AG, in addition to other holdings such as Austrian electronics components manufacturer Abatec (100%) and the Austrian automotive engine and drivetrain parts manufacturer Pankl Racing Systems AG (80% - the owner, among other properties of CP Carillo Pistons and Rods and Arias Pistons in Irvine, California).

In turn, Pierer Bajaj AG owns 74.94% of PIERER Mobility AG. It is PIERER Mobility AG that is listed on the Vienna and Swiss stock markets. The shares have plummeted to around the € 7.7 mark as at the end of November 2024 (approx. USD $8.15), having been as high as € 101.88 (approx. USD $106.37) as recently as February 2022.

It is PIERER Mobility AG that is the 100 percent owner of KTM AG, not Pierer Bajaj or Pierer Industri, and it is KTM AG that is filing, not, as reported mistakenly elsewhere, its PIERER Mobility parent company. It is KTM AG that owns and operates the KTM, Husqvarna, GasGas and MV Agusta motorcycle brands and their operations, and in which the relationships with CFMoto and ZEEHO electric vehicles are owned and operated.

There are four additional business divisions owned by PIERER Mobility AG, but they stand alongside but separate to KTM AG within the structure. These are the Bicycle, Design and R&D (Kiska etc), Digital Transformation and IT division (such as PIERER Innovation which is among the interests in which Stefan Pierer's son Alex is primarily involved) and the Motorsport division.

This structure is important in understanding who exactly those shareholders left taking the loss actually will be, and it would appear that, through PIERER Mobility AG's 100% ownership of KTM AG it will be Pierer Bajaj AG (74.94% of the hurt) and the other shareholders in PIERER Mobility AG - those on the Austrian and Swiss stock exchanges, and any other 'direct' ownership stakes within the approx. 25% remaining minority balance of the non-Pierer Bajaj AG controlling ownership slice.

The day before the filing announcement, PIERER Mobility moved to deny domestic Austrian press reports that talks had taken place with Mark Mateschitz, the son and heir of the Red Bull energy drink founder. An obvious candidate for the nearly € 1bn of liquidity that is said to be required, but a carefully worded denial simply said that no such talks had taken place at that stage. It did not rule out whether such talks might take place at some stage though. 

However, Indian conglomerate Bajaj Auto remains the favorite to take over ownership. Additionally, CFMoto already has 'skin in the game' through its corporate and manufacturing ties with the group and their primary Chinese rival Qianjiang Motorcycle (the Benelli-owning Geely subsidiary) and is likely to be wanting to keep a close eye on any moves its internationally best know, respected and connected domestic rival may be planning. Both will likely also be eying how Bajaj Auto responds to the mess.

Malcolm Smith

Malcolm Smith, Legendary Motorcyclist and AMA Hall of Famer

Malcolm Smith (1941-2024), who many consider to be America's most-renowned and best-loved motorcyclist, has died from complications of Parkinson's disease, which he battled for more than two decades. He was 83.

Smith passed away at home in Riverside, California on November 26, peacefully and surrounded by family. He is survived by his wife Joyce, daughters Louise and Ashley, sons Joel and Alexander, granddaughters Evie, Adeline, Amelie, Miley and Claire, and grandsons Ethan, Malcolm and Conrad.

During his 83 years, Smith did it all: Rider. Racer. ISDT gold medalist. Shop tech. Service manager. Repair shop owner. Aftermarket distributor. Retail store owner. Actor. Sponsor. Philanthropist. Pro-motorcycling advocate. Husband. Father. Grandfather. Friend. And much more.

But over and above all that, Malcolm Smith was everyman's motorcyclist, an enthusiastic, fun-loving, driven and talented example of what motorcycling could do and be for the everyday enthusiast, and how the sport could affect our lives in unimaginable ways.

"Malcolm Smith embodied so much of what's good about motorcycle enthusiasts and the sport of motorcycling," said AMA President and CEO Rob Dingman. "Not only did he excel in riding, racing and business, but Malcolm was also a great example of how to get the most out of motorcycling and give back and support our sport, which he did during much of his life - and always with a grin."

Funeral and memorial services are pending. In lieu of flowers, the family kindly requests donations to Malcolm's favorite charity, the Malcolm Smith Motorsports Foundation, which supports the children of Baja, a www.malcolmsmithmotorsportsfoundation.org

More than decade ago, Malcolm Smith wrote these words for the final chapter of his acclaimed 2015 autobiography: "It all started for me on March 9, 1941, in a small rural hospital in the village of Ganges, on Salt Spring Island, British Columbia, Canada…

"Where it will end, no one knows. But you can be sure I'm going to enjoy every minute I have left, with a smile on my face, and my family nearby. Can't ask for more than that."

You can't, and he didn't…and the world's motorcycling fans are better for it.

Godspeed, Malcolm.

Custom Chrome Europe

Ivano Segato new Sales Coordinator

Custom Chrome Europe has appointed Ivano Segato as new Sales Coordinator for all of Europe.

Ivano has been a familiar presence at CCE and in the V-twin market in Europe as the distributor's dedicated Sales Representative in Italy for over 20 years.

Ivano will continue to be the Italian Country Manager for Custom Chrome and company spokesman Axel Scherer said that "Ivano has played a crucial role in many of our company successes. His in-depth market and product knowledge and his determination make him the ideal candidate to lead our sales efforts into the future.

"Over the past few years, Ivano has contributed significantly to our growth and development. With his commitment and work ethics, he has earned the trust and respect not only of the entire team, but also of customers and suppliers in our industry. We are confident that our sales activities will reach new levels of success under his leadership."

We here at AMD wish Ivano success in his new role. 

custom-chrome-europe.com

ACEM

ACEM: 'Big Five' Motorcycle Registrations +1.3% YTD

The latest data from ACEM, the Brussels based international motorcycle industry trade association, shows motorcycle registrations running at +1.3% (874,004 units) across the 'Big Five' markets (Italy, France, Spain, Germany and UK) for the nine months to September 2024.

Motorcycle registration volumes increased in Spain (163,476 units, +6.1% year-on-year) and in Italy (286,052 units, +5.3%) showing an upward trend, while a slowdown is noticed in France (164.387 units, -2.2%), in Germany (185,377 units, -2.7%) and in UK (86,208 units, -4.0%).

Moped registrations reached a total volume of 132,533 units in the six European moped markets monitored by ACEM (Belgium, France, Germany, Italy, the Netherlands and Spain). This registration volume represents a reduction of -14.5% compared to the same period in 2023 (155,090 units). 

The decline is widespread in all monitored countries: Germany (12,368 units, -18.8%), France (49,023 units -17.7%), Netherlands (23,546 units, -14.9%), Spain (10,709, -17.5%), Belgium (22,221 units, -8.6%) and Italy (14,666 units, -4.2%).

Antonio Perlot, ACEM Secretary General, said: "Long term trends highlight record highs in Italy and Spain, with motorcycles matching the best nine months performance in the last five years overall."

Antonio Perlot, ACEM Secretary General, said: "The European motorcycle market was stable in the first nine months of 2024, resulting from mixed performances at National levels. 

"Long term trends highlight record highs in Italy and Spain with motorcycles matching the best nine months performance in the last five years overall, while moped electric powered two-wheeler registrations shrink.

"The last quarter of the year is usually slower in terms of volumes, but the EICMA and INTERMOT shows lead us into 2025, bringing the spotlight onto manufacturers' new vehicle lineups - something that always raises consumer interest."

www.acem.eu

S&S Cycle

Weight-Saving Slip-On Muffler Kit for Pan America

Designed for adventure and crafted with precision engineering with unmatched attention to detail, this slip-on muffler kit for 2021 and up H-D Pan America models is made for the adventurous spirit of the Harley-Davidson Pan America rider. 

"Whether you're tackling rugged terrain or cruising down the highway, riders can feel the difference with every twist of the throttle."

Wrapped by a carbon fiber heat shield and end cap, this muffler weighs 19% less than the stock system. That is a substantial weight saving for any adventure model "and to top it all off, our removable dB reducer allows riders to customize their ride even further."

Features include show quality brushed stainless finish, carbon fiber end cap and heat shield, replaceable dB reducer (J2825 compliant) and, weight being the enemy of performance, 19% weight savings over stock muffler. 

S&S CYCLE INC.

www.sscycle.com

Rekluse

Why Upgrade to the Rekluse APEX Manual Clutch?

Following the success of its APEX clutch launch earlier this year, Race Winning Brands, the owner of Boise, Idaho based Rekluse, the designer and manufacturer of the new APEX clutch, has moved to add further industry experience to its V-twin sales and marketing team by hiring ex-PM and S&S man David Zemla.

Installs of the new system were a popular draw at its Black Hills Harley-Davidson set-up at the Sturgis Rally in August, and dealer traffic was strong at its booth at the recent Drag Specialties NVP and Product Expo in September.

Drag Specialties sales reps reported a thirst for a detailed understanding about how the APEX system differs from other clutch offerings, what the design benefits mean for the riding experience and how it adds to the V-win clutch options already established in the Rekluse range.

The biggest questions so far have been why a new clutch, and how does APEX add to the options available - after all, Harley clutch upgrades aren't exactly a new concept. Stock Harley clutches have never been one of the major design strengths of Milwaukee's Big Twin powertrain technology.

To answer these questions, Rekluse says that it is important to understand what type of clutch upgrade is best for the type of riding that an owner does and the feeling they want from their clutch - what are a rider's goals?

Rekluse says that clutch lever pull effort and lever feel are at the top of the list, with each style of clutch on the market, from extra plates to a slipper clutch to a lock-up clutch and everything in between, having its advantages.

"But our aim has been to innovate, to bring new ways of dealing with the problems often encountered with stock clutches, and to do it in new ways.

"Thanks to its proprietary design and patented components, APEX reduces clutch lever pull effort and improves modulation regardless of whether the bike is bone stock or built for all-out performance.

"We looked at clutch versatility in addition to lever pull effort. Baggers and other Harley models continuing to be increasingly asked to perform what used to be categorized as "Extreme Duty" where getting the power through the transmission concerned. Even 'street' clutches need new thinking to be able to keep up. The result has been that the compatibility of existing aftermarket and performance clutch options continues to become more segregated, leaving riders unsure of what's best for them. 

"This all led us to the highly versatile solution that the APEX clutch design represents. An all-performance capable manual clutch system that will help riders get the most out of their engines, regardless of their riding style or other performance upgrades.

"This versatility is achieved as a result of a meticulously tuned and tested system that features a slew of proprietary clutch technology, starting with the Fixed-Pin Hub.

"Traditional hub designs use machined grooves in the aluminum to retain drive plates, commonly causing notching inside the grooves through normal use and eventually leading to hub replacement. Fixed-Pin is a patented new hub design exclusively from Rekluse that uses steel-on-steel contacts to retain the drive plates to eliminate that notching wear and the performance degradation that comes along with it. As an added bonus, it also provides a noticeable improvement in the clutch modulation and control that riders can feel at the lever.

"Our award-winning TorqDrive friction disc technology allows for up to eight additional friction discs over the OEM clutch stack. This additional plate capacity is a major factor in allowing the clutch lever modulation to remain easy throughout various power levels and rpm ranges. Plus, at the end of the day, more friction discs equals more torque capacity and therefore improved power transfer to the rear wheel. 

"This is true whether the engine is stock, has bolt-on upgrades, or is an all-out high-hp build pumping out 200 ft.-lbs.

"The Rekluse TorqDrive for Harley clutches in our APEX clutch uses two sets of clutch springs - six clutch springs in total - but each APEX clutch system is supplied with two different sets of springs. These differing spring rates, one stiffer and one softer, allows riders to tune their clutch system with a total of three spring rate combinations, depending on the torque output of the engine and rider's clutch feel preference.

"In addition to the Fixed-Pin hub, APEX is also supplied with a billet, hard-anodized pressure plate. These billet internal components, referred to as 'Core' components, help maximize durability through both the strength of the parts themselves, and with their oil flow improving designs, increasing oiling throughout the clutch. This helps keep the heat down and allows the entire clutch system to perform longer and more consistently.

"Although available without a complementary clutch basket upgrade, for those who wish to keep the OEM basket, Rekluse recommends the new basket for maximum durability. APEX is supplied with basket sleeves that simply slide in between the basket tangs and protect them from notching.

"Essentially, the APEX clutch is a manual clutch system that takes the capabilities of a traditional coil spring clutch to a completely new level. This clutch is an innovative system that uses a combination of proprietary technology and design, including Fixed-Pin, TorqDrive and Core. APEX improves lever feel, power delivery, rideability, longevity and torque capability, just to name a few of the benefits that we are seeing."

Rekluse says that APEX is available for a wide range of Harley-Davidson models powered by Twin Cam and Milwaukee-Eight (M-8) big twin engines, covering year models from 2007 to current. APEX is available from Rekluse distribution partners, including Drag Specialties.

REKLUSE MOTOR SPORTS

www.rekluse.com

Roland Sands Design (RSD)

RSD 'Sector' Riser System

New from Roland Sands Design (RSD) in Long Beach, California, this 'Sector' modular riser system "is the ultimate upgrade for your Harley Softail or Road Glide. With the ability to customize your height and pull back, you can dial in your perfect riding position. Pair them with a 'Sector' gauge relocator for a seamless install."

Described as offering "an innovative solution for riders looking to dial in their hand controls position, this system is fully modular and can be configured into 48 different variations. 11 different component options create a fully customizable experience ranging from 2" to 12" rise, straight or pull back, with various top clamp options as well as gauge mounts."

Machined from 6061 billet aluminum, they are available black anodized or in nickel finish, with straight or pull back geometry, single or two-piece top bar clamps (1 1/8") and black stainless riser system hardware included (except hardware for mounting to triple clamp).

They fit any H-D with 3 1/2" on center triple clamps with mounting holes, Indian Challenger with Barnstorm inner faring system and the BMW R18. The 'Sector' gauge relocation kits for Road Glides and Softails are sold separately.

ROLAND SANDS DESIGN

www.rolandsands.com

motogadget

CAYO - Adjustable Phone Mount System

Berlin based motogadget (of polished aluminum mirrors fame) has introduced what it is describing as a "revolutionary smartphone holder that takes smartphone mounting to a whole new level."

The company says that it has invested "four years of development into this device mount that combines innovative design with the highest functionality. The space-saving construction offers a secure hold for any smartphone. Whether on a bicycle, motorcycle, scooter or in a car - the CAYO mount ensures that the phone is securely fastened and always within reach."

The standard mount, bike.dokk, is "ideal for all vehicles," while the moto.dokk additionally offers inductive charging and vibration damping for motorcycles. Installation is easy, and thanks to the "unique" design of the mechanism, "the phone can be mounted vertically or horizontally at any time without any hassle. With the adjustable arm, the perfect viewing angle can be set."

motogadget

www.cayo.cc