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Stefan Pierer, CEO of KTM and new owner of Husqvarna lays out his plans for the two companies.
Pierer is not only the CEO of KTM, but also the majority shareholder of the Austrian Brand as well. KTM also owns another off-road brand - the Husaberg range of bikes. He hopes to get the three brands to work together under the same umbrella a la the 4 wheeler manufacture Volkswagen.
The idea is to have the same basis for all three brands and this will help bring down costs by increasing production quantities. With this increase in economies of scale, Pierer intends to take on the might of the Japanese in the off-road market.
Pierer:
But experts believe that Husqvarna might be better off with KTM than BMW, but it still might not achieve the kind of success in part sharing like Volkswagen. The no. of off-road motorcycles sold is very small compared to the car market. Also cars can be differentiated because of the amount of body work. But on Dirt Bikes it is very difficult to differentiate products as it is basically a no frills motorcycle.
BMW had spent 5 years on development of the brand and a whole new range of road motorcycles. But after all that investment of time and money, BMW decided to put up Husky on the market. The reasoning was that the company needs to concentrate on its existing range of motorcycles. In this respect, KTM might have an advantage over BMW as it already has the expertise in the off-roading segment.
Source: Husqvarna: What the future may hold - | Motorcycle News | Bike News | Motorbike Videos | MCN
Pierer is not only the CEO of KTM, but also the majority shareholder of the Austrian Brand as well. KTM also owns another off-road brand - the Husaberg range of bikes. He hopes to get the three brands to work together under the same umbrella a la the 4 wheeler manufacture Volkswagen.
The idea is to have the same basis for all three brands and this will help bring down costs by increasing production quantities. With this increase in economies of scale, Pierer intends to take on the might of the Japanese in the off-road market.
Pierer:
But experts believe that Husqvarna might be better off with KTM than BMW, but it still might not achieve the kind of success in part sharing like Volkswagen. The no. of off-road motorcycles sold is very small compared to the car market. Also cars can be differentiated because of the amount of body work. But on Dirt Bikes it is very difficult to differentiate products as it is basically a no frills motorcycle.
BMW had spent 5 years on development of the brand and a whole new range of road motorcycles. But after all that investment of time and money, BMW decided to put up Husky on the market. The reasoning was that the company needs to concentrate on its existing range of motorcycles. In this respect, KTM might have an advantage over BMW as it already has the expertise in the off-roading segment.
Source: Husqvarna: What the future may hold - | Motorcycle News | Bike News | Motorbike Videos | MCN
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