Stefan Pierer steps aside as KTM chief ahead of crucial court hearing

Pierer Mobility AG has announced that Stefan Pierer has stepped down as the CEO of Austrian two-wheel manufacturer KTM.

Gottfried Neumeister will take over the reins of the company as part of the management reshuffle, but Pierer will remain on board as the co-CEO.

The news was made public just ahead of an important court hearing for KTM AG and its two subsidiaries at the regional court in Ried im Innkreis in Upper Austria on 24 January.

The registered claims of the creditors will be examined on that date, with it believed that 5,400 people or companies are owed money. The list includes the town of Mattighofen, where KTM is based, for outstanding payment for sewage and waste disposal.

These creditors are said to have put pressure on Pierer to step down from his role.

KTM issued two press releases ahead of the court hearing, as it revealed its financial results for 2024 and announced a major change in management.

It stated: “Stefan Pierer will hand over the role of CEO of PIERER Mobility AG and KTM AG to Gottfried Neumeister and will continue to support him as Co-CEO during the restructuring process.”

Neumeister joined the Executive Board of Pierer Mobility AG and KTM AG on 1 September 2024. He founded the airline flyNiki with late Formula 1 legend Niki Lauda in 2003 and was the company’s managing director until its sale to Air Berlin at the end of 2011.

From 2012 to 2023, Neumeister was co-CEO of DO & CO, which is primarily known for its restaurants and catering business. 

As the new CEO of Pierer Mobility AG, Neumeister had to publish some grim financial results for the preceding year. Group turnover fell by 29 per cent in 2024 compared to the previous year and the company expects a negative operating income (before depreciation and amortisation) of €300 million.

The company also stated: “The 2024 financial year was characterised by far-reaching restructuring measures. To date, a total of more than 1,800 employees have been cut across the Group. In addition, production output was deliberately curtailed to reduce the number of motorcycles held by dealers and importers.

“By reducing the production volume to around 230,000 motorcycles (-26% compared to 2023), global inventories were relieved by around 40,000 units (-18%). This represents an important first step in the restructuring plan.

“On a positive note, demand from consumers was strong. Distributors and dealers sold around 268,000 motorcycles to retail customers, the same level as last year.”

It remains to be seen how KTM’s financial issues will impact its motorsport programmes. The Austrian automotive giant recently won the Dakar Rally in the bikes category with Daniel Sanders and is due to unveil its new MotoGP bike on 30 January.

“Recent racing successes have confirmed this confidence,” it said. “With three consecutive victories in the Enduro World Championship, two Supercross season openers and the first Dakar Rally win across all major motorcycle categories, the 2025 motorsport season has got off to a successful start.”

Important court hearing on Friday

Pedro Acosta, Red Bull KTM Factory Racing

Photo by: Lorenza Dadderio

New investors are crucial for KTM’s continued existence. The court hearing on Friday is therefore an important step in the insolvency proceedings, as clear plans must be presented as to how the company will have enough funds to continue as a going concern in the future.

On 17 December 2024, Pierer Mobility AG announced that it had commissioned Citigroup Global Markets AG to find new investors. According to the latest press release, the company is confident on that front.

Although no specific names were mentioned that will be presented to the court on Friday, it is stated that there are ‘several’ offers from investors.

“The funds will either be made available to PIERER Mobility AG for onward transfer to subsidiaries, in particular to KTM AG, or will flow directly to KTM AG or its subsidiaries,” it said.

“Based on the available offers, financing at the level of PIERER Mobility AG supplemented by debt instruments at the level of KTM AG or its subsidiaries is also a possibility.

 “With the financial resources offered, the quota from the restructuring plans of KTM AG and its insolvent subsidiaries can be financed at least to the statutory extent of 30 per cent.”

On 24 January, insolvency administrator Peter Vogl will report on the status of the proceedings at the regional court in Ried im Innkreis.

Concrete investment plans must now be put on the table. The final decision on the restructuring proceedings will be made on 25 February, when the creditors will vote on the restructuring quota. KTM is aiming for a restructuring quota of 30 per cent, to be paid within two years.