KTM on the abyss: The only lifeguard loan at the last minute!

KTM on the abyss: The only lifeguard loan at the last minute!

Vienna, Österreich - ktm, the established motorcycle manufacturer, faces a serious financial crisis that could culminate in a possible bankruptcy. According to vienna.at, the company will need a significant sum of 600 million euros by May 23 at midnight. Otherwise the renovation procedure will end and subsequently opened bankruptcy.

The Indian co -owner Bajaj has already secured a loan of 566 million euros and has invested a total of 200 million euros in KTM in the past few months. This loan is supported by large banks such as JPmorgan Chase, DBS Bank and Citigroup. In addition, Bajaj could receive more say in the company through this financial support. The current renovation plan provides for a bar quota of 30 percent for creditors, but the judicial confirmation of this plan is still pending.

difficult location for production

Production in Mattighofen, the main location of KTM, is currently severely restricted due to the constant supply chain problems and bankruptcy. In this situation, the work stands still, which leads to significant wage and salary losses for the workforce. It remains unclear whether this forced break will continue until August. KTM had already applied for a renovation procedure with self -government in November 2024, with 1,200 creditors registering claims of around 2.2 billion euros.

The situation of KTM reflects a general tendency in the automotive and motorcycle industry, which is in deep structural change. Dr. Jan-Philipp Hoos from [White & Case] ​​(https://inso.whitecase.com/kompetenz/automotive) points out that numerous companies in the industry are faced with political, economic and structural challenges. In particular, the supplier industry could be severely affected by the current developments.

The change in the automotive industry

The automotive industry is not only affected by bankruptcies, but also experiences a profound change. Topics such as connectivity, autonomous driving, shared driver models and electrification are becoming increasingly important. Manufacturers not only have to adapt their production processes, but also their business models to remain competitive.

Autonomous driving in particular is seen as a potential “game changer”, which entails new investments and cooperation. At the same time, the need for effective mobility solutions results, since many vehicles are not used every day and parking problems increase. The challenges therefore extend far beyond pure financial difficulties such as those of KTM and affect the entire industry.