Cycle News is a weekly magazine that covers all aspects of motorcycling including Supercross, Motocross and MotoGP as well as new motorcycles
Issue link: https://magazine.cyclenews.com/i/1259933
KTM PRESIDENT/CEO STEFAN PIERER: PART 1 P78 Interview Thanks to its continued focus on innovation, the Pierer Group may justifiably claim to be the Euro- pean PTW (powered two-wheeled) industry's leader in technology, emphasized by the outright take- over last October of the German company Pexco, previously its strategic partner in manufacturing electric bicycles. Another strategic partnership, its long-established link with Bajaj Auto, India's second largest indigenous motorcycle manufacturer, which owns 47.99% of KTM AG equity, with the remain- ing 51.67% of the voting rights held by Pierer Mobility, continues to strengthen the Austrian company's competitiveness in global markets. Stefan, how has the unexpect- ed impact of the Covid-19 crisis affected KTM, especially after another record year in 2019? It was not unexpected! As a global company, we have connec- tions around the world, and we already recognized very early on that there was a problem coming out of China, because this was preventing our customers in Asian markets buying our products. When it began causing prob- lems with our Italian supply chain providing parts for the bikes we build here in Mattighofen, I had originally planned to halt produc- tion in the middle of March. But our young Austrian Chancellor Mr. Kurz beat me to it, and on March 11 he announced a lockdown, one of the first European countries to do so. So, since March 16 we had a total stop in production, until thanks to the resumption of manu- facture by Italian supplier compa- nies, we could restart motorcycle production on May 11 under the Austrian short time working sys- tem. Then on May 18 we got back on track at full speed, with 100% of our 3639 employees in Austria working full time. Have you had to lay anybody off full time? No. In fact, we have already hired an additional 40 people! Honestly speaking, we are now in a very favorable situation compared to other manufactur- ing industries like automotive or aircraft, where it's a nightmare. For us, fortunately, the powered two-wheeler industry is actually flourishing to a certain extent after corona[virus]. In all countries which have reopened since the lockdown, there's a very positive demand for our products. It seems that in several countries the public has discovered, sometimes for the first time, that powered two-wheelers/PTWs are a very convenient way of commut- ing to work both quickly and affordably. Yes, you're right. That's one of the experiences that we've got, starting with China. China was a couple of weeks ahead "Sooner or later I want to become number one in Europe in terms of registrations. We are already on the podium, so moving up a step is my next ambition!" Pierer says KTM did not layoff anyone off during the coronavirus pandemic but actually hired 40 people.