Pierer Mobility, the parent company of KTM, has announced significant job cuts due to a sharp decline in sales for 2024. The company expects sales in the European and American markets to drop by 10 to 15 per cent compared to last year.
In a statement, Pierer Mobility revealed that in the last ten years, the number of employees at the motorbike subsidiary KTM AG has more than doubled. However, with the changed in market situation, the number of employees now has to be adjusted. The decision has also come because the company wishes to maintain and secure its competitiveness of the production site.
To address the challenging situation, KTM will shift focus to its manufacturing locations in India and China. In India, KTM will leverage its relationship with Bajaj, while in China, the company will rely on CFMoto. This strategic move aims to reduce costs and secure competitiveness by taking advantage of the favourable economic conditions and establishing an efficient, high-quality supplier industry in these regions.
The company also acknowledged difficulties faced by dealerships in the US and Europe in selling motorcycles. To support its dealers, KTM plans to offer longer repayment schemes and larger discounts, measures that will impact the company’s profits.
In addition to KTM, Pierer Mobility owns Husqvarna, GasGas, WP Suspension, and recently acquired MV Agusta. By shifting production away from Europe, KTM hopes to balance its books or even achieve profitability by the end of the year.
