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Pierer New Mobility may be a new name in the bicycle industry but it is backed by a company that knows how to create success. Daniel Blackham visits the Austrian HQ to learn more about its plans for the mobility market.
This piece first appeared in the November edition of BikeBiz magazine – get your free subscription here
Pierer New Mobility may only be four years into its history but it stands on the shoulders of a company that has celebrated decades of success.
Pierer New Mobility’s story can be traced back to 1953 and the founding of KTM (Kronreif Trunkenpolz Mattighofen) motorcycles in Austria.
The brand celebrated its first production record in 1954 with the first bicycles introduced in the early 1960s. In 1984, Heinz Kinigadner became the first Austrian to win a motocross world championship – on board a KTM.
In 1991, the company was split into four new entities: KTM Sportmotorcycle GmbH (motorcycles division), KTM Fahrrad GmbH (bicycles division), KTM Kühler GmbH (radiators division) and KTM Werkzeugbau GmbH (tooling division).
At the start of 1992, Stefan Pierer and his Cross Industries company took over the motorcycle side of the business and set about taking it to new levels.
Of the four separate companies left after the split, three are now again part of the Pierer Mobility AG Group: KTM Sportmotorcycle GmbH, KTM Werkzeugbau GmbH and KTM Kühler GmbH (today WP Radiators).
KTM Fahrrad GmbH (KTM Bike Industries) remains an independent company and is owned by Chinese investors.
Throughout Stefan Pierer’s 30 year stewardship, the company has seen endless.
Pierer Mobility AG now stands as a €2.4 billion business with more than 6,000 global employees – around 1,400 of which work in research and development.
In 2018, the organisation took its first steps into e-mobility under the guise of Pierer New Mobility.
Since then, more than 140,000 units have been sold and revenue is already surpassing €200 million.
But this is just the start.
The executive board expects revenue in the New Mobility segment to more than double with revenue anticipated to increase to €500 million by 2027.
On a recent visit to the Pierer House of Brands in Munderfing, Austria, Eric Sakalowsky, VP of global marketing for Pierer New Mobility, and Ash Clark, head of sales for the UK, explained to BikeBiz how the company is going to get there.
House of brands
Under Pierer New Mobility there are three core brands: Felt, GasGas and Husqvarna.
When launching into the market the most natural way for Pierer New Mobility to do it was to take existing motorcycle brands in GasGas and Husqvarna and add bicycles as a portfolio extension.
As the idea matured, the company decided that the portfolio needed an authentic bicycle brand. This led to the acquisition of Felt in November 2021.
Each of these offer a distinct identity.
Husqvarna is seen as a pioneering brand that offers smart and progressive design, GasGas as a performance brand that is capable and vibrant but still ignites the fun element, and Felt as a fast brand that is competitive and accomplished.
“Each brand has to stand by itself, be sharp and focused,” explained Sakalowsky.
“The brand has to be well honed and a little polarising, try not to be everything to everybody and then the product portfolio has to support the brand.”
Unlike many new businesses, Pierer New Mobility is not teetering on the edge of making it or breaking it when launching a new brand or product.
This is due to the solid foundation on which the company is built.
As well as financial backing, Pierer New Mobility has access to some of the leading minds in design, concept development and digitalisation.
Pierer Mobility owns a 50% share in Kiska, a design agency that’s been responsible for the appearance of KTM, GasGas and Husqvarna motorcycles for many years.
Kiska has also worked with a host of performance brands to generate business growth such as: Campagnolo, Magura and Adidas.
Alongside Kiska, Pierer Innovation, the design arm of the company, works on concepts like AI, blockchain, and machine learning. Pierer also owns 100% of software developer Avocodo.
We have already seen this mix of innovation culminate in updates to existing models and new launches.
The GasGas moto urban-cruiser is a one-size fits all cruiser for maximum fun on daily rides. It ticks the box for the fun element of what GasGas hopes to be.
And last month saw the unveiling of the brand’s new ECC, a race-focused enduro e-MTB that harnesses a high-level of performance in a vibrant design. Again, achieving the targets set by Pierer New Mobility.
There have been recent updates to Husqvarna models such as the Eco City which offers an affordable and refined step-through option for urban riding.
Felt has also been busy with a number of refinements to improve speed, keeping to its motto of “Felt is Fast”.
Dealers first
Pierer New Mobility has publicly laid out its future-focused strategy.
It will be built on four key areas: strategic global partnerships, an international brand portfolio, innovative products, and strong relationships with its dealer network.
International brands and innovative products often get the headlines, but for retailers and consumers it’s the network around that which offers true value.
“Dealers First” is the organisation’s motto. Beyond products and brands is an extensive catalogue of measures to support dealers globally.
The best example of this is a €40 million investment in logistics and assembly.
The joint venture between Pierer and Maxcom Mobility will see Pierer own 50% of one of Europe’s largest bicycle assemblers.
The site in Plovdiv, Bulgaria hosts warehousing, logistics, and assembly, offering much more flexibility to meet demand.
Outside of Europe, Pierer has a trading company in Taiwan called “Pierer New Mobility Asia Ltd”. This organisation focuses on quality and supply chain management with a team of 10 staff supporting both bicycle and motorcycle operations.
And in the UK?
Leading on that front is Ash Clark as head of sales, along with Martyn Hoyle as area sales service manager and Rachel Bazeley as sales service administration specialist.
For UK retailers, working with Pierer New Mobility brings a host of benefits.
The company is able to provide retail and wholesale financing with attractive terms.
Pierer New Mobility also offers a nationwide warranty for consumers and to support dealers will cover labour for warranty – which is becoming increasingly rare in some quarters of the trade.
“We’re going to push brand visibility by racing, advertising and creating cool products,” said Sakalowsky.
“But when the rubber meets the road, we have the levers to pull to help check out.”
Clark added: “There’s an obligation on our part to see success at retail level.”
Any retailers interested in learning more about Pierer New Mobility or its brands can contact Ash Clark via email on: Ash.Clark@pmag.com
