Following the takeover of Bajaj Auto from the now defunct Pierer Mobility group, recently renamed under the name of Bajaj Mobility AGthe new management of the company continues to implement changes with which to amend the economic and corporate drift that the Austrian company has faced in recent years.
One of them seems to be about to materialize with the opening of a new design center in Salzburg.
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The new design center and the collaboration with Kiska
Until now KTM had continually used Kiska for the design of its models. With more than 35 years of experience and currently operating from four different headquarters, this renowned studio had always been linked to the brand image of the Austrian firm. However, with the arrival of Bajaj to the management of the company, it seems that this role could be about to change.
As published by SpeedWeek colleagues, KTM would already be creating its own design team and, in parallel, looking for a location for its new design center. The first option would be the city of Salzburg, curiously the same enclave where Kiska’s operations center is located. Specifically, “The Helix office and innovation building in the Taxham district, situated directly on the motorway, is mentioned as a specific possibility”they say from the Austrian media.
Currently, Bajaj Auto owns 20% of Kiska, which was previously held by the defunct Pierer Mobility. Until this moment, more than 50% of the income generated by the established design studio came precisely from the projects it undertook in synergy with the brands belonging to the Austrian group, mainly KTM and Husqvarna with which it collaborated the most.
The new design center in which Bajaj Mobility AG works aims to achieve greater strategic control over the brand’s products. At the same time, approach this activity from a different vision than the one that had been given by Kiska Design. On the other hand, the Indian group urges the latter to diversify their client portfolio, thus generating greater income in parallel to the possible projects that may be assigned to them from KTM.
Let us remember that at the beginning of last year Kiska had to be rescued financially by Loxone. This technology company based in Kollerschlag, Austria, headed by Thomas Moser and Martin Öller, acquired 51% of the design studio’s assets. Currently, Kiska has 160 employees and generates around €26 million in revenue annually. However, there is no doubt that from now on KTM will limit its collaboration with the latter as a result of the creation of the aforementioned new design center.
All of this confirms the new direction of the Austrian brand, which recently announced a massive layoff of 500 employees with the aim of “strengthen competitiveness in a sustainable way by reducing fixed costs, rationalizing structures, focusing the portfolio of products and projects and optimizing our international network of headquarters and leadership”pointed out from the management of Bajaj Mobility AG.
