KTM in need: Loss of millions and job losses threaten!

KTM in need: Loss of millions and job losses threaten!

Europe's largest motorcycle manufacturer KTM is experiencing a dramatic crash: the Austrian company has filed for bankruptcy because it can no longer cope with financial pressure in view of the lack of buyers and too high. On Friday, November 29, the management announced that the renovation procedure to apply for self -administration, whereby the liabilities are estimated to be valued for a high three -digit million amount. Stefan Pierer, the CEO of KTM, sees this step as a necessary "pit stop" to save the company, while the reality of a potential end of a glamorous era threatens. According to rosenheim24.de , the failed market development and the overproduction of the high demand during the Corona-Pandemie can be derived. The motorcycles produced far beyond the need are now stacked in the camps and require drastic measures.

The problems increase through the increased production costs in Austria, where high wages and energy costs also burden the German manufacturer. Pierer Mobility, the parent company of KTM, had already started to reduce hundreds of jobs and to shift production abroad to India and China - a decision that worried the workforce. A renovation plan is to be drawn up over the next 90 days to convince the creditors and to restore confidence in the brand. With the announced production stop between Christmas and the end of February, an additional 300 employees have to go to the previous 700 job cancellations this year. Of the former 5,000 employees in Austria, there are only a few left, as well as oe24.at reported.

market consequences and uncertainty

KTM now faces the crucial challenge of creating the basis for a strong return through “redimation of the group”, with negative annual results for 2024. This could sustainably reduce future operating capacity in Austrian works. Despite the optimistic statements by Pierer that the bankruptcy is part of a necessary restructuring process, the uncertainty about the future of the company remains, in particular through rumors that the Italian brand MV Agusta could be sold or that other former investors, such as Red Bull, could start.