KTM crisis: Citizens are demanding clarity after dividend payments!

KTM crisis: Citizens are demanding clarity after dividend payments!

In a fateful meeting of the municipal council of Mattighofen, it was decided to collect a cooperation with the neighboring community of Schalchen. This is a reaction to the uncertain financial situation, among other things, due to the bankruptcy of KTM AG, which ensures great concern in the region. According to the financial department, reserves could be necessary to secure the budget for 2025. Markus Wengler in particular, head of finance department, expressed concerns: "In view of the situation around KTM, economy is the order of the day, because we don't want to become a leaving community." KTM is the focus of criticism, since there are open residues of 21,000 euros for water and sewer fees and the local tax for this month is also eliminated, which the city is financially charged.

economic turbulence and high dividends

The challenges for the city are not only financial in nature. KTM AG reported bankruptcy that affects 1,624 creditors. This happened, although the company generated an operational profit of 26 million euros in the first six months of 2024 and even paid dividends of EUR 10.7 million to the shareholders, as the Momentum Institute reports. Mayor Daniel Lang expressed resentment about the situation: "There is great resentment among the population about the dividend payments, while the employees now have to look into the future unsafe." Meanwhile, CEO Stefan Pierer has personally benefited from the distributions and has transferred high amounts from the company into his personal assets in the past ten years.

The expenditure for personnel costs at KTM are less than 10 percent of sales, which is significantly too low compared to the metal industry. This leads to a discussion about the actual causes of the financial problems. Criticism of the management becomes loud, since savings in the personnel costs would have contributed little to solve insolvency. In view of the ongoing challenges and the burst hopes of financial stability, the city of Mattighofen urgently has to find sustainable solutions to ensure the municipal infrastructure and social offers - such as the planned expansion of kindergarten care.

meinbezirk.at reported on the approval of the holiday care, while Moment.at addressed the accurate economic problems of KTM AG.