The move is aimed at trying to stave off bankruptcy
The Pierer Mobility group has announced that struggling bike manufacturer KTM will enter self-administration and apply for the initiation of judicial restructuring proceedings. The Austrian marque is undergoing a significant financial crisis and was seeking at least 100 million euro to continue operating beyond 2024. The company, currently competing in MotoGP, has laid off hundreds of employees and plans to pause production of its bikes in January and February of next year.
Read Also: MotoGPWhy Ducati's defeat in MotoGP 2024 is actually a historic triumph 'Redimensioning the group should not only secure the continued existence of the KTM Group in the long term, but also create the basis for emerging stronger from the proceeding,' said Pierer Mobility in a statement. 'A redimensioning of production should lead to a gradual adjustment in excess stock at KTM and its dealers over the next two years.
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