Pierer Mobility to exit e-bike business amid restructuring struggle

Pierer Mobility AG announced it will withdraw from the bicycle and e-bike business during its 2025 fiscal year, which was first reported by Bicycle Retailer, marking a major strategic shift as it focuses on restructuring amid significant financial losses.

According to a preliminary financial report released April 28, the Austrian company will liquidate the remaining Husqvarna and GasGas e-bikes inventory and assess strategic options for its 70% stake in the U.S.-based Felt Bicycles, which it operates independently.

The company cited a sharp decline in e-bike and bicycle sales in 2024 as a contributing factor. Sales fell to 106,311 units from 155,859 the year prior — a 32% drop — partly attributed to the sale of the R Raymon brand. In January, Pierer consolidated its global e-bike operations in California and Austria, closing other regional offices.

The exit from the bicycle segment comes as Pierer Mobility faces mounting financial strain. The company reported a net loss of €1.888 billion in 2024 and anticipates further losses in 2025. Revenues declined nearly 30% year-over-year to €1.879 billion. As of December 31, 2024, the company also reported negative equity of €199 million and net debt of €1.64 billion.

Pierer’s struggles extend beyond the bike segment. The company, which owns motorcycle brands such as KTM and Husqvarna Motorcycles, is undergoing a significant restructuring. After halting motorcycle production in December 2024, Pierer began a gradual restart in March 2025, enabled by a €150 million cash injection from Indian partner Bajaj Auto. All four production lines are expected to be operational again by summer.

As part of its restructuring plan, the company seeks to secure roughly €600 million in financing from equity and debt investors. The outcome of these negotiations is critical, as it will determine whether Pierer can continue operating under the going concern assumption or will need to adopt liquidation accounting for insolvent subsidiaries, including KTM AG.

Pierer’s delayed 2024 annual report is now expected by May 31, 2025, after receiving temporary exemptions from both the SIX Exchange Regulation AG and the Vienna Stock Exchange. The delay is tied to ongoing uncertainties in finalizing financing arrangements for its restructuring plans.

The company reported selling 292,497 motorcycles in 2024, down from 372,511 in 2023, and reduced production to approximately 230,000 units to manage global inventories. Over 1,850 employees were reduced from early 2024 through March 2025, with further reductions anticipated from the planned sale of its stake in MV Agusta.

Despite the grim outlook, Pierer noted that completing its reorganization could generate a restructuring gain of €1.3 billion, significantly improving the company’s equity position.

Pierer Mobility’s investor relations website will publish the full preliminary report and future updates, including the finalized 2024 annual report.