Motobilia: Thank you Sel, for taking the time to give us an inside look at the US headquarters. It is a very impressive operation to say the least.
Sel: You are welcome. It is a state of the art facility and a great place to come to work everyday.
Motobilia: Let’s address the current internet rumor first. Is KTM, Husqvarna, or Gas Gas going bankrupt?
Sel: Absolutely not. We are doing some financial re-organization, just like most corporations are in this “post- pandemic era. Businesses big and small are always adjusting to the changing market/economic conditions. We are no different. Some people on the internet just love rumors.
Motobilia: We know as a company you do a considerable amount of market research. What have you found to be the major differences between the various generations? Boomers vs. Gen X, Y and Z?
Sel: The Boomers are more satisfied with motorcycles in their stock form, while the younger generations are more inclined to accessorize and modify their bikes. We have also learned that these tendencies are not necessarily linked to performance as much as to the owner’s perception of status.
Motobilia: Really? How so?
Sel: We hear the media and others stating that we (the general motorcycle industry) should make cheaper models with fewer features to keep costs down. But when we have, the consumers have gravitated to the more expensive models. It is partly because they want the competitive advantage, but it is very much tied to perceived status. This is predominantly the case with the younger generations.
Motobilia: How much crossover do you see with the bicycle customer vs motorcycle customer? Do you see an equal amount of bicycle riders becoming motorcycle riders and vice versa?
Sel: Many of our motorcycle customers use the bicycles for training, so that is a natural connection to our Husqvarna and Gas Gas MTBs and Felt brand road bikes. We don’t have any hard numbers on the percentage of our bicycle owners becoming first-time motorcycle owners. However, we do have strong brand loyalty within our customer base, so there would be a a natural inclination for them to buy a brand they are already associated with.
Motobilia: KTM, Husqvarna and Gas Gas are all competition-oriented brands. Does the old adage “Win on Sunday, sell on Monday” hold true in today’s market?
Sel: All three of our brands have a long history of racing success, so we have a proven track record of performance and reliability. That is key to customer confidence. If another brand wins, do our sales suffer? No, not really. Consumers are very sophisticated these days and are not easily swayed. They tend to gravitate to proven entities.
Motobilia: Pierer Mobility Group owns of all three motorcycle brands plus the bicycle division, which includes Felt. Clearly, the Group is focused on mobility. What else might be in store? KTM obviously has had the X-Bow (pronounced Cross Bow) sports car for several years. Are there more four-wheeled vehicles coming? Honda started with one car model in the late 1960s, and they have a huge presence now.
Sel: The X-Bow is sold in many places around the world as a street-legal machine. There are even some imported to the US for racing purposes but there is not a car division in our foreseeable future.
Motobilia: Much has been written and said about the communication between rider and team technicians. It is all very human and easily mistranslated. How is that process changing?
Sel: Deciphering rider input is key to making the necessary adjustments that create confidence for the rider. We do not have the level of telemetry in the dirt sports that we have in Moto GP. Dirt conditions are also constantly changing compared to asphalt so we have to rely heavily on rider input. Team chemistry is essential, and we never stop trying to improve it. Ultimately it becomes a blend of what information we get from the rider and what the techs see in the way the bike is working on the track. Sometimes very minor adjustments yield big changes, so it is a mix of art and science.
Motobilia: In your opinion, how is Pierer Mobility (KTM/ Husqvarna/ Gas Gas) different than the OEMs?
Sel: Our corporate culture is very different. We care about our employees as individuals, not just a collective workforce. That care and concern creates a better bond and a better atmosphere for our people to do their best work. 98% of the employees and management still actively ride and race! I am not sure any other motorcycle company can make that claim. Riders know what riders like.
