KTM crisis: Citizens demand clarity about dividend payments!

KTM crisis: Citizens demand clarity about dividend payments!

In a fateful meeting of the Mattighofen local council, it was decided to enter into a cooperation with the neighboring community of Schalchen. This is a reaction to the uncertain financial situation due, among other things, to the bankruptcy of KTM AG, which is causing great concern in the region. According to the finance department, withdrawals from reserves may be necessary to secure the budget for 2025. Markus Wengler, head of the finance department, in particular expressed concerns: “In view of the situation surrounding KTM, thrift is the order of the day because we don’t want to become a community of people leaving.” KTM is the focus of criticism because there are outstanding arrears of 21,000 euros for water and sewer fees and the municipal tax for this month is also missing, which puts a heavy financial burden on the city.

Economic turmoil and high dividends

The challenges facing the city are not just financial. KTM AG announced bankruptcy, affecting 1,624 creditors. This happened even though the company generated an operating profit of 26 million euros in the first six months of 2024 and even paid dividends of 10.7 million euros to shareholders, as the Momentum Institute reports. Mayor Daniel Lang expressed dissatisfaction with the situation: “There is great dissatisfaction among the population about the dividend payments, while the employees now have to look to the future with uncertainty.” Meanwhile, CEO Stefan Pierer has personally benefited from the distributions and has transferred large amounts from the company into his personal assets over the last ten years.

Expenditure on personnel costs at KTM is below average at less than 10 percent of sales, which is significantly too low compared to the metal industry. This leads to a discussion about the real causes of the financial problems. There is criticism of management because savings in personnel costs have done little to solve the insolvency. In view of the ongoing challenges and the dashed hopes for financial stability, the city of Mattighofen urgently needs to find sustainable solutions to ensure the municipal infrastructure and social offers - such as the planned expansion of kindergarten care.

MyDistrict.at reported on the approval of holiday care during Moment.at the underlying economic problems of KTM AG were discussed.