Pierer New Mobility GmbH (PNM) is realigning its operations to streamline business activities and reduce inventory.
In sharing the news, PNM states it will focus its activities on the brands Husqvarna E-Bicycles and GasGas Bicycles.
To increase efficiency, the company will consolidate its operational functions (such as Customer Service, Marketing and Sales) at its headquarters in Munderfing, Austria, and Murrieta, California, USA.
From these two locations, PNM will manage its global business operations. This also means that current regional activities (including South Africa, Germany, and the United Kingdom) will be gradually and systematically phased out.
As part of the strategic realignment, PNM is also working to process existing inventory to the maximum degree.
The announcement also highlights that “During this transition phase, daily business for customers will continue as usual. There will be no disruptions in the delivery of spare parts and accessories or in customer service.”
“The Felt Bicycles brand will remain unaffected by these changes. This company will continue to operate as an independent entity with its unique identity and market presence.”
Bigger picture observations
Industry observers will be aware that the PNM parent – Pierer Mobility AG, the holding company of KTM AG, a leading European motorcycle manufacturer – has faced serious financial challenges, requiring an extensive restructuring of the business.
The common theme across PNM and Pierer Mobility AG: An excess of inventory, and a market which has seen significantly reduced sales.
With this in mind, it will likely come as no surprise that PNM has taken similar steps – reorganising business operations, and locations, seeking to streamline the business. Such a move likely includes a reduction in headcount, as part of any efficiencies exercise.
