Pierer Mobility AG announces shift of production to Asia

Pierer Mobility AG (PM) – KTM’s parent company – has recently outlined some significant changes that will be happening to their business to cut production costs and remain competitive. PM is also the parent company of GASGAS, Husqvarna, WP Suspension, Felt, and MV Agusta (since 2022).

In the investor notice, PM will be selling off 2 of its bicycle (non-motorized) brands Felt and R Raymon to focus resources on its motorized products. PM says that a deal has already been reached for the sale of R Raymon, which should be completed by the end of 2023. Felt, on the other hand, is being sold to a consortium and the deal will be completed sometime in the first half of 2024.

KTM to source more of its production from Bajaj, CFMOTO image

KTM Headquarters in Mattighofen, Austria

 

Perhaps, the biggest announcement in the notice is PM’s plans to move a significant chunk of its production to Bajaj in India and CFMOTO in China “due to unfavorable economic conditions in Europe.”

While the investor notice didn’t quite delve into specifics on what additional parts of production will be sourced to Bajaj and CFMOTO, PM mentioned that the shift will affect its mid-range models and certain Research and Development (R&D) activities to India and China. Unfortunately, this move also meant that 300 jobs would be lost at its Austrian facilities in 2024.