KTM Drops MV Agusta from Portfolio Amid Financial Crisis
Recent headlines have highlighted KTM’s financial struggles, with the company facing significant losses. The situation has taken a further turn with the recent split between KTM’s parent company, Pierer Mobility AG, and its subsidiary, MV Agusta. This unexpected move comes just months after Pierer Mobility acquired MV Agusta. To address its financial difficulties, KTM is now undertaking a major restructuring effort aimed at restoring profitability.
Earlier this year, KTM increased its ownership in MV Agusta to a majority stake of 50.1%. This followed a series of acquisitions that began in November 2022, when KTM initially purchased a 25.1% stake and took control of MV Agusta’s supply chain and purchasing operations. Subsequently, in 2023, KTM further expanded its investment by acquiring another 25% stake. As part of their strategic plan, KTM aims to boost production capacity at MV Agusta’s Varese plant to 10,000 motorcycles annually.
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Due to recent financial challenges, KTM has divested its ownership of MV Agusta. Consequently, production operations will be relocated back to Italy. MV Agusta has affirmed its strong financial position and has retained approximately 60% of its leadership team. Additionally, the company has recruited new experts to bolster its capabilities. Moving forward, MV Agusta will operate as an independent entity headquartered in Italy.
KTM’s financial difficulties appear to stem primarily from a decline in the European motorcycle market. Despite this, its parent company retains ownership of GasGas and Husqvarna and continues its partnership with Bajaj Auto, India’s leading motorcycle exporter. Notably, KTM has only recently, in late 2024, introduced its larger motorcycle lineup to the Indian market, having previously prioritized single-cylinder models manufactured domestically. The future trajectory of KTM remains uncertain, however, securing liquidity will be paramount. There’s a possibility that Bajaj Auto, KTM’s Indian collaborator, could play a pivotal role in revitalizing the Austrian brand.
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