Sales decline, red figures, a tightened austerity package! The reduced demand for motorcycles forces Pierer Mobility AG to further reduce its workforce. At the factory in Mattighofen (Upper Austria), the challenges are also clearly noticeable in the motorcycles produced.
In early December 2023, Pierer Mobility announced a savings package, including the relocation of production parts and a reduction of approximately 300 employees in motorcycle assembly and research and development.
Friday was the next blow: another 200 employees, this time in administration, had to leave Stefan Pierer’s company. What are the reasons for this? The motorcycle industry is sputtering. “After three above-average successful years,” the half-yearly financial report states, the Mattighofen-based company is struggling with declining sales in North America, Europe, Australia and New Zealand.
Cycling area with shortage
The result: With a period result of minus 172 million euros, Pierer Mobility (KTM, GasGas, Husqvarna and MV Agusta) was in the red in the first half of 2024. The loss-making bicycle division, which is currently being restructured, also put pressure on the result.
How do you want to get back on track? On the one hand, the reduction in personnel costs is intended to relieve the budget, but on the other hand, production has also been reduced, which reduces the tied-up capital and lightens the burden on the warehouses.
What does this mean for Mattighofen? In the first half of the year, 76,383 motorcycles were produced, compared to 111,940 in the same period last year.
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.
