KTM drops MV Agusta amid financial crisis

KTM’s parent company, Pierer Mobility AG, has severed ties with MV Agusta amid financial woes. It had acquired the company early this year.

1. KTM currently needs funding of over Euro 100 million (over Rs 892 crore)
2. MV Agusta’s production will move back to Varese, Italy

KTM recently announced that it is going to undertake ‘far-reaching restructuring’ with a view to cut its losses and become profitable again. As part of this move, the Austrian marque has dropped MV Agusta from its portfolio. This news comes just nine months after KTM acquired a majority 50.1 percent stake in the storied Italian brand.

Times have been tough for the motorcycle industry in Europe, hit by issues like supply chain disruptions, changing consumer preferences, and the transition towards electric mobility. KTM, known for its focused off-road motorcycles and street bikes, has been a significant player in the European and American markets. Pierer Mobility AG still has the Husqvarna and GasGas brands under its umbrella, alongside KTM.

MV Agusta, now, is again an independent motorcycle company, and it will resume production at its home base in Varese, Italy.

Also See: KTM’s financial troubles grow, seeks funding upward of 100 million Euros