[webbikeworld.com] - PIERER Mobility Moves Partial Production of ?Mid-Range Models? t

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• PIERER Mobility will move partial production/certain R&D activities to China (CFMOTO) and India (Bajaj Auto)
• “Individual mid-range models” (no bicycles) include machines affected by this move
• Cuts of up to 300 jobs will be made from Austria locations
• Expectations for 2024 include a “difficult global economic environment” and leaning into “a year of consolidation.”

We’ve been getting lots of movement from MV Agusta/KTM/Husqvarna/GasGas’s parent company today, and this is the biggest wave yet.*

On top of PIERER Mobility’s decision to focus more heavily on its motorbike brands, the Group is relocating a portion of its production and R&D activities to China and India.

A view of KTM’s new Duke range. Media provided by KTM.The reason for the major move is cited to be “unfavorable economic conditions in Europe,” with operations in China involving bike brand CFMoto, and, in India, by moto giant Bajaj Auto.

We aren’t told which motorcycles will be affected by the move; PIERER’s press release simply states that the relocation will affect partial production of “individual mid-range models… and certain R&D activities.”

As if the above weren’t enough, PIERER also needs to cut back on jobs; effective as of 2024, PIERER Mobility Group will be making a “necessary reduction in staff of up to 300 employees at the Austrian locations in 2024.”

KTM’s 2023 1290 Super Adventure R. Media provided by KTM.Interestingly, PIERER Mobility admits that market demand is good, though skyrocketing interest rates and dealer supply costs have certainly played an extra part in affecting the financial year.*

Here’s PIERER’s projection for 2024:*

We expect the global economic environment to be difficult in the 2024 financial year. For the PIERER Mobility Group, 2024 will be a year of consolidation, which will be used to strengthen the core business.”

“The Board of Directors expects sales to remain almost unchanged and an EBIT margin of 5 % – 7 %.”

– “PIERER Mobility: Strategy sharpening and guidance adjustment,” December 5, 2023

What do you think 2024 has in store for KTM, GasGas, Husqvarna, and MV Agusta motorcycles?

*Media provided by KTM*

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