Last week, voestalpine made people sit up and realize that it would have to adjust its plans for the 2024/25 financial year because the steel company will make less profit than expected. Now Pierer Mobility also has to reverse its predictions. The crisis at the motorcycle and e-bike manufacturer continues. This also has consequences for management.
In July, Pierer Mobility surprised with the departure of CFO Viktor Sigl. At the same time, the group of companies, which includes the motorcycle brands KTM, GasGas, Husqvarna and MV Agusta, announced that Gottfried Neumeister would join the management team from Mattighofen from September.
Now Neumeister and owner Stefan Pierer are the only two remaining managers on Pierer Mobility’s board of directors. Because: On Monday evening, the two-wheeler specialist from Upper Austria announced that the board of directors would be reduced from six to just two people.
Destocking is happening more slowly
The dual management now wants to get Pierer Mobility back on track. Not an easy task, because the market is weakening. Demand for motorcycles in the US is faltering; In Europe this is relatively stable, but the bicycles come from the low price segment. The result: the inventory reduction at KTM and Co. is progressing, but not as quickly as initially thought.
Therefore, the company on Monday lowered its original plans and expectations for turnover, profit and also the development of net debt for the financial year 2024. The need for cash value adjustments will be reassessed towards the end of the year.
Several hundred employees had to leave
Pierer Mobility had already woken people up in December 2023 by moving parts of production and research and development to Asia. Several hundred employees were affected by these measures. They had to leave the company.
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.
