Pierer Mobility, parent company to KTM, Husqvarna and GASGAS, reported it is selling both Felt Bicycles and R Raymon bike brands as part of a strategic plan to divest its non e-bike business. This will enable the Austrian-based company to focus on its core e-bike and motorcycle brands. Although Felt is being sold it won’t be falling far from the Pierer Mobility tree: Felt Bicycles is being sold to a new consortium led by Florian Burguet, the chief sales officer for New Mobility at KTM. The deal is expected to close in the first half of 2024.
Founded in 1991 by motocross mechanic Jim Felt — remember his Moto-inspired beach cruisers? The eponymous Felt Bicycles eventually focused on time trial and triathlon bikes as it underwent several ownership changes, including being acquired by the Rossignol Group in 2017 and Pierer Mobility at the end of 2021. In recent years, Felt Bicycles moved away from selling mountain bikes to cover road, triathlon and gravel bikes.
Spinning of Felt is part of PIERER Mobility’s master plan to bolster its core motorcycle business. “In the motorcycle business, the cost of dealer inventories has risen sharply due to significantly higher interest rates despite good market demand,” according to Austria. “PIERER Mobility is strengthening its dealer structure by extending payment terms and offering higher discounts.
“Due to the sufficient liquidity reserves available, PIERER Mobility AG supports not only its dealers but also its suppliers in order to cushion the significantly increased financial burdens caused by the rise in interest rates… We expect the global economic environment to be difficult in the 2024 financial year. For the PIERER Mobility Group, 2024 will be a year of consolidation, which will be used to strengthen the core business.”
Find out updates on the Felt saga at AIMExpo: Felt Bicycles, Husqvarna E-Bicycles and GASGAS E-Bicycles will be in Booth #6101
