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/1531887
Stefan Pierer Steps Aside as KTM CEO S tefan Pierer is the latest casualty amidst the tale of KTM's dramatic financial angst, as it was announced the Austri- an has stood down from his role as CEO of KTM AG last week. The company is in the midst of self-administration debt restructuring proceedings after a year of catastrophic financial results in 2024 and is fighting to find ways to repay 30 percent of the $2.5 billion debt owed to creditors, as per Austrian law. Pierer, who Forbes magazine determined had a net worth of $1.6 billion in 2023, had been at the helm of KTM since taking over in 1992. Since then, he over - saw the Austrian company's rise from a regional manufacturer to a global brand, and multiple-time MotoGP race winner. The Austrian had recently been in India to talk with bosses of the Bajaj brand about pos - sible investment in the company to help alleviate its current finan- cial predicament. Co-CEO Gottfried Neumeis- ter will now take on the role of company CEO, after he joined as recently as September 1, 2024. He has previous experience at Siemens AG Austria and DO & CO Aktiengesellschaft. Pierer will remain on the executive board to accompany the reorga - nization process. "For me, KTM was always more than just a company—it was and is a passion, a mission and a family," Pierer said via an official statement. "The decision to hand over the helm was not an easy one. I am deeply con - vinced that Gottfried Neumeis- ter, with his strategic foresight and commitment, is the right choice to lead KTM into the future." While this represents major news for the company, the key meeting is yet to come. Its final court hearing on February 25 is the date to watch. There, creditors will be given the choice of accepting or rejecting the proposals presented from the proceedings. And understanding whether the brand will survive could be dependent on new investment coming in. While the company has recently enjoyed motorsport successes in the Dakar Rally with Australian Daniel Sanders winning the two-wheel category, and in the Monster Energy AMA Supercross class, where Chase Sexton sits second in the 450 standings, there was further news on the restructuring pro - ceedings on January 24. A hearing presented updates on the restructuring proceed- ings and revealed KTM and its subsidiaries have $2.5 billion of debt. While there were flecks of good news, local paper KSV1870 said the proceedings amount to "the largest bankrupt - cy ever filed in Upper Austria." A total of 3534 claims have been filed, "namely 2347 claims from employees and 1187 claims from other insolvency creditors," according to Austrian creditor AKV. WIND IN THE P28 Stefan Pierer (right) has handed control of KTM over to Gottfried Neumeister (left).