KTM before the end? Worries about the future of the Austrian motorcycle manufacturer!

KTM before the end? Worries about the future of the Austrian motorcycle manufacturer!

Mattighofen, Österreich - The surprising bankruptcy application from KTM, the leading Austrian motorcycle manufacturer, has made large waves. Last Friday, the company at the Ried regional court provided a renovation procedure in self -administration due to its enormous debt load of 1.8 billion euros and estimated total liabilities of almost three billion euros. This affects over 3,600 employees who now have to worry about their jobs. The main reasons for the bankruptcy were increasing location costs and the persistent recession. In particular, an immense warehouse over production of around 130,000 motorcycles has tightened the situation because the demand has dropped greatly, as the Financial Times reported.

effects on the MotoGP racing stable

As a result of the insolvency situation, worrying news came from the MotoGP scene. As the online portal Motorsport-Total.com reported, KTM is said to have stopped developing the MotoGP bikes for the time being. The technology boss Pit Beirer tried to calm the situation by explaining that planning for the 2025 season had already been organized and that the engine development was imminent for 2026. Nevertheless, the drivers concerned, including the talented Pedro Acosta and Brad Binder, could be thrown back by the sudden twists

renovation plans and future prospects

As part of the renovation plan, creditors put hope of a repayment of 30 percent within two years. However, experts warn that KTM could get into trouble without financial support from the owner, Stefan Pierer. "The banks have to go," said insolvency lawyer Karl-Heinz Götze. The pressing questions about the strategic realignment and the need to reduce positions, in particular 750 jobs, present the company with enormous challenges. Despite the current crisis, KTM has been known for his acquisitions and investments in recent years and recently achieved record sales.

The bankruptcy of KTM could have far -reaching consequences for the entire industry in Austria. Industry representatives fear that the company's imbalance could possibly sweep other suppliers away. According to Creditreform, this is one of the largest bankruptcies of the year and could pave the way for further company slides.