Bajaj now controls KTM parent Pierer Mobility

On Tuesday, the shares of Pierer Industrie were transferred to Bajaj, making Bajaj the controlling majority shareholder of Pierer Mobility AG with 74.9 percent, as announced on Wednesday night.

Bajaj Financial Boost Saved Insolvent KTM

Bajaj, a partner of the Upper Austrian motorcycle manufacturer KTM since 2007, secured the survival of the insolvent KTM with a financial injection in the spring. In return, it was agreed that Bajaj would fully take over the previous joint venture Pierer Bajaj and thus the controlling majority of the KTM parent Pierer Mobility. After the takeover commission and the EU Commission gave the green light, this call option has now been exercised.

Headquarters of Pierer Mobility to be Relocated to Mattighofen

Further steps are expected from the extraordinary general meeting taking place today, Wednesday: As part of the reorganization of ownership, Pierer Mobility is to relocate its headquarters from Wels to Mattighofen (Braunau district), where KTM is also based. In addition, all supervisory board members nominated by former CEO Stefan Pierer will resign to make way for new supervisory board members of the new Indian majority shareholder Rajiv Bajaj.

What it means for the KTM site in Austria that the Indians have now taken the helm is uncertain. Rajiv Bajaj, head of the family-owned Bajaj Auto, sought to reassure during a meeting with Upper Austrian Economic Councilor Markus Achleitner (ÖVP) in India: "KTM will always remain an Austrian company, leading in research, design, development, engineering, racing, as well as in the production and distribution of top-class large and specialized motorcycles in preferred markets," he sees KTM and Bajaj as independent, as quoted by "Oberösterreichische Nachrichten" and "Kronenzeitung" in their Wednesday editions. Achleitner sees this as a "clear commitment to maintaining the KTM site in Austria."

Indians Focus on Efficiency and Costs

However, according to newspaper articles by Bajaj board member Pradeep Shrivastava - who is expected to join the supervisory board of Pierer Mobility on Wednesday - it was also emphasized that efficiency must increase and costs must decrease. While around 1,000 employees at the Bajaj plant in Pune, India, can produce about 200,000 motorcycles a year, KTM in Austria has about 4,000 employees for 230,000 motorcycles. For some time now, the lighter KTM motorcycles have been produced by Bajaj in India. According to Bajaj managers, large-volume, off-road, and high-end motorcycles will continue to be produced in the Innviertel in the future.

(APA/Red)

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