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/1535807
KTM Saved! I ndian automotive giant Bajaj Auto is set to take over as the majority shareholder at KTM AG. Bajaj agreed on an €800 mil- lion ($905,244,000) deal aimed at revitalizing KTM after a torrid 12 months that very nearly saw the company go under. Bajaj Auto, a KTM AG stake- holder since 2007, will now become KTM's strategic leader. Its expanded role and significant capital investment are designed to strengthen KTM's opera- tions and secure the company's future. As has been known for several months, KTM's many creditors will receive 30 percent of their dues by May 30, following the company's decision to restruc- ture late last year. The €800 million investment from Bajaj Auto not only reaf- firms its commitment to KTM but also positions them as the controlling force behind Pierer Bajaj AG and, by extension, Pierer Mobility AG—the parent company of KTM. "Today we have been given the opportunity to continue the history of KTM," said KTM CEO Gottfried Neumeister in a statement. "Together with our long-standing partner Bajaj, we were able to work out a strategy that will enable us to raise a further 600 million euros for our new start in addition to the 200 million euros already made avail - able. The existing sites—in par- ticular our main plant in Mattig- hofen/Munderfing—will remain the basis for our future success. This means that we will continue to be an important employer for the entire region. In view of this new, second opportunity, we at KTM feel deep gratitude and humility towards all those within and outside our group of compa- nies who have made it possible. I would also like to take this op- portunity to thank Stefan Pierer on behalf of all those who have accompanied us along the way. He laid the foundation for one of the world's best-known motor - cycle brands, which has a unique community." Bajaj Auto has detailed the steps it intends to take with KTM, stating the following: Initiating a revamp of the gov- ernance framework, including reconstituting the board. Commencing the journey of turnaround—putting in place a program aimed at restoring momentum and competitive growth while driving the financial viability of the company. Implementing measures that widen the remit of the existing joint development program be- tween the companies and pursu- ing synergistic opportunities in both the front end and back end. Exploring potential partner- ships and collaborations to build sustainable competitive advantage and long-term value creation. CN WIND IN THE P28 KTM will continue kicking up roost well into the future after being saved by Bajaj Auto.