KTM Group in Oz & NZ Bought by KTM Austria
While a greater majority KTM’s importers and distributors around the world are wholly owned subsidiaries, KTM Australia is not. At least, not for the past 25 years, anyway. But in a deal announced yesterday, Automotive Holdings Group (AHG) has sold the remaining 74% share of its motorcycle importation business to its Austrian-based parent, KTM Sportmotorcycles. That means the KTM Group in both Oz and NZ will become full subsidiaries of the Austrian company as of July 1, 2019.
But what does that mean for the KTM Group’s personnel, dealers and customers in Australia and New Zealand? According to press release (the full transcript of which appears below), it’ll be business as usual after July 1, albeit with an increased level of support for the dealer network, staff and customers.
KTM GROUP AUSTRALIA & NZ GEARS UP FOR FULL FACTORY SUPPORT
After 25 years of stable and successful business Automotive Holdings Group (AHG) has sold the remaining 74% share of its motorcycle importation business to the brand’s parent company, KTM.
AHG has been the exclusive importer and distributor of the KTM brand for the Australian and New Zealand market since 1994, with the Husqvarna Motorcycles and WP Suspension brands joining the stable in recent years.
In 2017, KTM, which is Europe’s leading motorcycle manufacturer, purchased a 26% share of the AHG motorcycle importation business. It now moves to full ownership of both KTM Group Australia and KTM Group New Zealand.
The move to full ownership will see KTM Group Australia and KTM Group New Zealand become full subsidiaries of the Austrian company.
Now selling more than 11,000 KTM and Husqvarna Motorcycle units combined, the Australian and New Zealand business has become the third largest market in the world for KTM and will now become the third largest subsidiary for the company.
“What a journey it has been since our first AHG Dealer Conference in 1994 and there have been so many significant milestones along the way,” said Jeff Leisk, General Manager, KTM Group Australia and New Zealand.
“I am extremely proud to have seen the KTM and Husqvarna Motorcycle brands go from strength to strength in both the Australian and New Zealand markets. We have built strong relationships with our dealers and our customers and this has been the key to our success. Becoming a factory-owned subsidiary will increase the level of support that we can offer our dealer network, our staff and our customers, so I am excited about the next chapter,” said Jeff.
About the new acquisition, Hubert Trunkenpolz, KTM’s Chief Marketing Officer said, “We are absolutely delighted with the outcome and our full ownership of KTM Group Australia and KTM Group New Zealand. This transaction once again reinforces our commitment to the Australian and New Zealand markets. This is a very positive development for the KTM dealer network and the KTM customer in both countries.”
The change will take effect from the July 1, 2019. While the change of ownership is a significant development for both the company and the market, there will be no impact on KTM Group staff or the established dealer networks for KTM, Husqvarna Motorcycles and WP Suspension.