KTM to withdraw stake in MV Agusta plan months after acquisition as bankruptcy looms

The news comes from a critical meeting with unions at Confindustria Varese on December 9, 2024, wherein KTM declared that MV Agusta is no longer consi

MV Agusta KTM — KTM will be divesting its stake in MV Agusta, months after increasing its to 50.1 per cent in the Italian performance motorcycle maker as part of the restructuring process.

KTM recently announced its plans to put the company into self-administration as the threat of bankruptcy looms. One of the company’s first major decisions will be divesting its stake in MV Agusta as part of its restructuring process. The news comes from a critical meeting with unions at Confindustria Varese on December 9, 2024, wherein KTM declared that MV Agusta “is no longer considered a strategic asset” for the Austrian company.

KTM To Divest Stake In MV Agusta

The trade union confirmed that the production operations of MV Agusta will be transferred back to the Varese plant but the complete process will take about 90 days for implementation, completing the transfer by March 2025. The divestment will help KTM reduce costs but the overall expenditure will continue to be significant.

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MV Agusta Super Veloce — MV Agusta will continue selling existing stocks of motorcycles currently in Austria while its plans to add three more models from mid-March 2025 to be built at its home in Varese

This is also an important period for MV Agusta as it looks to transition. The company further revealed that the first months of 2025 will be dedicated to the sale of two motorcycles currently with a volume of 2,000 units in stock in Austria, while the brand plans to launch production of three new motorcycles of around 3,000 units from mid-March. onwards next year to avoid creating unnecessary stocks.

The unprecedented changes will also see MV Agusta accelerate its three-year development target as early as 2025 to ensure future sustainability. The company is also dependent on external sources for cash flow. MV Agusta further emphasized the company’s leadership will emphasize training and development as key priorities to avoid repeating the financial difficulties of the past.

Pierer Mobility Acquired a 50.1% Stake In MV Agusta In March 2024

Pierer Mobility, the parent company of KTM, acquired a stake in MV Agusta in March 2024. The brand had increased its stake in MV Agusta from 25.1 per cent in November 2022 to 50.1 per cent earlier this year. KTM AG took over the purchasing and supply chain of the Varese-based company in October 2023, while also taking over the distribution channels of MV Agusta’s motorcycles. With KTM coming on board, the Italian bike maker was expected to stabilize operations and increase production to 10,000 units.

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However, the divestment opens the famed Italian performance motorcycle brand to a potential new owner. MV Agusta will be looking for a suitable buyer, which can help stabilize operations while ensuring long-term sustainability including the development of new products. This transition period will be particularly interesting to watch out for with 2025 turning out to be a crucial year for the manufacturer.

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First Published Date: 12 Dec 2024, 00:28 AM IST

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