Powersports Business Decemeber 2024 | Page 8

8 • December 2024 • Powersports Business

FINANCE www . PowersportsBusiness . com

PIERER Mobility looks to investors for KTM financial lifeline

PIERER Mobility AG has issued an Ad hoc statement about its “ far-reaching restructuring and additional liquidity requirement ” for KTM AG . This is the third Ad hoc statement the company has issued since the end of August , as it faces serious financial challenges .
In the course of planning for the 2025 financial year , PIERER Mobility AG has to cover additional liquidity requirements at the level of KTM AG . As of June 30 , 2024 , the KTM AG Group was responsible for more than 95 % of PIERER Mobility AG ’ s revenue .
The executive board is currently working on securing financing for KTM AG , particularly for bridge financing in the three-digit million range . The company says discussions are ongoing with both the core shareholder Pierer Bajaj AG and existing financial creditors . The aim is to agree on a standstill agreement with the financial creditors involved in these discussions as a basis for the financial restructuring .
The negotiations and discussions are currently at an early stage , according to PIE RER AG . Therefore , it can ’ t make any concrete statements about the outcome of the negotiations , the conditions , and the size of additional financing .
PIERER Mobility says it is fully committed to supporting dealers and suppliers during difficult times .
Against the backdrop of a challenging economic environment , an even more far-reaching operational restructuring is being pushed forward to reduce inventories at both KTM AG and the dealer level to a sustainable level by significantly reducing production volumes . Furthermore , overheads will also be significantly reduced , the company says .
Stephan Pierer is the CEO of KTM . Photo courtesy of PIERER Mobility
DEALER FINANCIAL SNAPSHOT

NORTHWEST -1.1 % Parts Department 2.4 % Service Department 4.7 % Major Units 3.8 % Overall

WEST -1.6 % Parts Department 2.5 % Service Department -1.1 % Major Units -0.6 % Overall

UNITED STATES -0.2 % Parts Department 3.8 % Service Department 4.1 % Major Units 3.7 % Overall

MIDWEST -2.8 % Parts Department 3.7 % Service Department -0.1 % Major Units 0.3 % Overall

SOUTH

0.8 % Parts Department 3.8 % Service Department 6.5 % Major Units 5.8 % Overall

NORTHEAST 3.8 % Parts Department 6.4 % Service Department 10.4 % Major Units 9.2 % Overall

OCTOBER 2024 VS . OCTOBER 2023
In October , dealers were up an average of 3.7 % in combined revenue , according to composite data from more than 1,700 U . S . dealers that use the Lightspeed DMS . In the parts department , the average dealer was down 0.2 %. The Midwest was down the most signifi cantly in parts , reporting a 2.8 % drop . The Northeast had the most signifi cant increase in parts revenue , up 3.8 %. The South was the only other region up in parts revenue at 0.8 %. The average dealer was up 3.8 % in
service revenue . The Northeast was up 6.4 % in service , followed by the South , up 3.8 %, and the Midwest , up 3.7 %. Dealers were up by an average of 4.1 % in sales in October . The Northeast was up 10.4 %, while the West , down the most signifi cantly , reported a drop of 1.1 % in sales . The South was up 6.5 % and the Northwest was up 4.7 % in sales . The Northeast was up the most signifi cantly in combined revenue in October , reporting an increase of 9.2 % compared to the year ago month . The West , down 0.6 %, was the only region down in combined revenue .
PARTS SALES Parts sales revenue was up at 904 dealerships and down at 930 .
SERVICE SALES Service revenue was up at 1038 dealerships and down at 788 .
MAJOR UNIT SALES A total of 905 dealerships were up and 731 were down .
FOR MORE ON THE SAME STORE SALES DATA
For more information on this report and other industry data , contact : lightspeeddms . com