Costs in the double digits are required and the separation of up to 300 employees is planned – Pierer Mobility Ö (formerly: KTM Industries) published these plans on Tuesday evening. The motorcycle and e-bike group wants to move parts of production to Asia.
Just last week, Stefan Pierer, chairman of the Upper Austrian Industrial Association, emphasized that the cost disadvantages for Austrian companies in international competition are now enormous and that production would therefore be moved to other parts of the world.
Now the Styrian native is also tightening the belt at Pierer Mobility, which he runs, around the KTM, GasGas, Husqvarna and MV Agusta brands: the board will implement a cost-cutting program next year in which it is expected to reach a double-digit figure in millions brought up. be saved. It was also announced that the separation of up to 300 employees in Austria is also planned. Pierer Mobility currently has more than 6,300 employees.
Parts of production are moved
The reason for the workforce reduction is as follows: “The unfavorable economic conditions in Europe have led the board to transfer parts of production for individual mid-range models and certain research and development activities to strategic partner Bajaj Auto in India and to CFMOTO in China “The aim is, among other things, to take advantage of the cost advantages in these regions and to accelerate development and industrialization processes.
Sales of bicycle brands
At the same time, a restructuring is also taking place within the group: in the future the focus will be entirely on motorcycles and e-mobility, which is why the non-e-bike brands R Raymon and Felt are no longer in demand. The Mattighofen-based company will say goodbye to both brands.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
