Breaking:Pierer Mobility Exits Bike Biz; Shimano Cuts Apparel; Cowboy Recalls E-Bikes

　　Pierer Mobility Group Ends Bicycle and E-Bike Operations

　　Recently,news of a major strategic shift by Pierer Mobility AG has drawn widespread attention in the market.On April 29,the company officially announced that it would completely end its bicycle and e-bike business operations within the 2025 fiscal year.This decision comes in the wake of the challenges faced by its motorcycle subsidiary,KTM AG,which has been affected by bankruptcy and growing operational difficulties.

　　When the preliminary unaudited financial data for the 2024 fiscal year was disclosed,Pierer Mobility confirmed that in 2025,it would focus all its resources on restructuring and optimizing its motorcycle business.Additionally,Pierer Mobility's motorcycle division is separate from the independent bicycle and e-bike brands KTM and its parent company,KTM Fahrrad GmbH,which should not be confused with each other.

　　Husqvarna and Gas Gas Inventory Clearance

　　Regarding the existing electric bicycle inventory of the Husqvarna and GasGas brands,Pierer Mobility plans to start a clearance sale.As for Felt Bicycles,in which the company holds a 70%majority stake,various disposal options are being actively assessed.As previously reported,the minority shareholders of Felt Bicycles,Florian Burguet and Cesar Rojo,relocated the brand's headquarters to Barcelona,Spain last year,moving into a former textile factory.This factory now serves as the base for Rojo Design,as well as the production facility for the high-end mountain bike brand Unno.These moves indicate that Felt Bicycles is gradually being separated from Pierer Mobility's business operations.

　　The announcement to end the e-bike and bicycle business marks the formal end of Stefan Pierer's ambitious market entry plans,which were launched with much fanfare at the 2017 Eurobike exhibition.

　　2024 Sales Decline

　　According to Pierer Mobility's preliminary unaudited financial data for 2024,the company sold a total of 106,311 e-bikes and bicycles,a 32%decline year-on-year.The company attributed this to the impact of the German founders Susanne and Felix Puello's sale of R Raymon shares.The report also showed that KTM's motorcycle division experienced a 21%drop in sales,with 292,497 units sold,of which approximately 60,000 units were sold through its Indian partner,Bajaj Auto.

　　Revenue for Pierer Mobility fell to€1.88 billion,a 29%decrease year-on-year.Due to significant operational performance losses and one-time restructuring costs,the company's EBITDA turned into a loss of€484.3 million,compared to a profit of€323.5 million in 2023.

　　However,the situation is not just limited to financial losses;the company also faced negative free cash flow,resulting in a net debt increase to€1.643 billion,with a negative net worth of nearly€200 million by December 31,2024.

　　Motorcycle Production Line Restart

　　It is worth noting that the motorcycle production line at the Austrian factory,which had been halted due to bankruptcy in December last year,was restarted on March 17 with financial support from strategic partner Bajaj.The company expects all four production lines to be fully operational by the summer of 2025,provided the related investor processes are successfully completed.The company stated,"At that point,the global supply chain will gradually return to normal,ensuring smooth production processes and efficient output to avoid disruptions."

　　Shimano's Strategic Adjustment:Milremo Brand Shutdown and Apparel Line Streamlining

　　Amid increasing market competition,shifting retailer strategies,and ongoing supply chain challenges,Shimano Europe recently announced that it would discontinue its custom apparel brand Milremo and streamline its regular apparel product line.Despite this,Shimano plans to continue production and shipping of the 2025 fall/winter apparel collection as scheduled.

　　In its statement,Shimano acknowledged,"After over 25 years of deep involvement in the cycling apparel sector,we have accumulated a wealth of experience.However,after weighing the pros and cons,we had to make the difficult decision to scale back this business.Despite our best efforts,the long-term impacts of the pandemic have made business expansion increasingly difficult."

　　Ongoing Supply Chain Issues Affecting the Industry

　　In Shimano's Q1 2025 financial report,it was noted,"The retail segment for complete bicycles in Europe has seen a recovery with stable demand,but overall market inventory remains high."

　　Shimano will streamline its regular apparel series,focusing on core items such as shoe covers,gloves,socks,and a few select apparel pieces.

　　Cowboy Recalls C4 ST E-Bike Model Due to Frame Defect

　　Belgian e-bike manufacturer Cowboy issued a recall for its C4 ST(MR Version)e-bike model due to structural instability in the frame.The company is contacting affected bike owners and asking them to refrain from using their e-bikes until the frame is replaced free of charge.

　　The manufacturer stated,"After extensive quality testing,Cowboy discovered that some C4 ST(MR Version)e-bikes did not meet our high safety and quality standards."Due to a"production anomaly"in the weld between the head tube and down tube,some bicycles may develop fatigue cracks after about 2,500 km of use.In certain cases,this could lead to frame failure,which may result in the rider falling and being injured.

　　As a result,Cowboy has announced a recall for the affected frames and will replace them free of charge,prioritizing bicycles that have ridden more than 2,500 km.