Just two days ago we detailed how KTM AG could be at the gates of economic salvation thanks to a new capital injection. Bajaj Auto announced to obtain a new loan of 566 million euros, and although it did not clarify precisely where these funds would go, it has finally been confirmed that the Austrian company will be the beneficiary of the millionaire amount.
https://www.youtube.com/watch?v=tysnpqzrgay
KTM AG Under the Bajaj Auto umbrella
In the last statement of the Austrian company, it confirms, on the other hand, what was expected after a business operation of this magnitude: Bajaj Auto becomes de facto in the main investor of the group, which will entail, from now on, in terms of management and mandate. Gottfried NeumeisterCEO, KTM AG, said: “Today we have given us the opportunity to continue the story of KTM.”
“Together with our Bajaj partner, we have been able to elaborate a strategy that will allow us to dedicate 600 million more euros to our new beginning, which are added to the 200 million euros already available. The current facilities, in particular our main plant in Matchofen/Munderfing, will continue to be the basis of our future success.”
“This means that we will continue to be an important employment provider for the entire region. Given this new and second opportunity that we are offered, in KTM we want to show a deep gratitude, recognition and humility towards all those, both inside and outside our business group, which have made it possible.”
Concludes: “I would also like to take this opportunity to thank Stefan Piere on behalf of all those who have accompanied us along this path. He laid the foundations of one of the best known motorcycle brands in the world and that has a unique community of followers.”
In corporate terms, Bajaj Auto has been responsible for providing the necessary funds to allow KTM business continuity, financing the payment of quotas to the creditors to promote the restructuring of KTM’s debt. As we all know “KTM AG, KTM Components GMBH and KTM Forschungs & Entwicklungs GmbH approved on February 25, 2025 a 30%restructuring plan quota, payable until May 23, 2025.”
“The total and final amount necessary to finance the fee within the framework of the three restructuring plans finally amounted to 525 million euros. For this, a loan of 450 million euros to KTM AG is granted. 150 million additional euros are granted to Piere Mobility AG, which transfers the necessary balance for the payment of the quotas to the companies of KTM,” They clarify from the brand itself.
Likewise, from KTM AG they announce that Stefan Pierer will leave the board of directors of Piere Mobility AG in June 2025, after the conclusion of the restructuring process. On the other hand, the Supervision Council names Verena Schneglberger-Grossmannwho is part of the group since November 2015, as a new member of the Board of Directors (Legal Director) of Piere Mobility Ag, in support of the CEO Gottfried Neumeister.
Optimism seems to have reached KTM after the refinancing of its debt by Bajaj Auto. The Austrian brand says that: “Not only has it come to stay, but it is ready to advance with courage towards the future. With deep thanks to our passionate community, our dedicated team and our loyal partners, we celebrate KTM’s continuous trajectory as a brand based on innovation, resilience and unstoppable impulse. Let’s continue exceeding limits, breaking barriers and moving forward towards the future, together.”
