Pierer Mobility, the parent company of KTM, Husqvarna, GasGas, WP Suspension and 50. 1% of MV Agusta, released a report outlining an overall sales deficit for 2024, with poor performance expected to continue throughout the year.
After three years of “above-average success”, the company announced that its motorcycle sales figures in the European and US markets have “slowed down significantly”, with total sales volume for the year expected to fall between 10 and 15% compared to previous levels. in the motorcycle and bicycle divisions.
Following this news, Pierer announced staff cuts: “With the increase in sales over the past ten years, the number of workers at the KTM AG motorcycle subsidiary has more than doubled.
“In view of the change of location and the market situation, it was necessary to adjust the number of workers. This relief in the workforce after years of increased employment is painful, but mandatory to maintain and ensure the competitiveness of the production site.
The blame has been placed on high interest rates in the United States and market volatility in Europe, adding to emerging production costs.
Dealers also appear to be struggling to move new units, tying up huge sums of cash in crowded showrooms. As a result, Pierer says it will help its distribution network with long payment terms and giant discounts, increasing overall profits.
In addition to the relief for European workers, the brand has announced plans to further migrate its production out of Austria.
Pierer already has an established partnership with Chinese logo CFMoto and Indian company Bajaj, and the news suggests that more motorcycles from the logo will be made in China, India or cheap environments.
The press release continues: “Due to the fragile outsourcing sector in Europe, the PIERER Mobility organization is taking advantage of the favorable economic situations in those regions (India and China) to ensure its competitiveness. An efficient and high-quality outsourcing industry is being created there.
Even if the news seems bad for the brand division, its board of directors hopes that the cost-cutting measures mentioned above will compensate to such an extent that a balanced and even profitable year can still be saved.