KTM stops production again: Warehouse empty - what for the workforce?

KTM stops production again: Warehouse empty - what for the workforce?

In an alarming turn, KTM has announced that it would completely stop production four weeks after the resumption. CEO Gottfried Neumeister announced the decision in a video message. The production stop, which comes into force on Monday, April 28, 2025, will probably last 90 days. The cause of this disruptive step is missing components, since the motorcycles have so far only been made with parts from inventory.

The company's inventory only sufficient for 4,200 motorcycles, and the hoped -for recovery of the supply chains has failed. Despite the difficult circumstances, Neumeister assures that no further terminations are planned. However, the employees will have to expect wage losses during the production stop.

effects on the workforce and future perspectives

new master emphasizes the importance of long -term securing jobs and the need to adapt the regulations of working hours. KTM expects the supply chains to run stable again by mid -July 2025. The company plans to resume full operation in the main plant in Mattighofen on July 27, 2025.

In addition, the parent company Pierer Mobility AG is under pressure to raise 600 million euros by May 23, 2025. This makes the strategic future of the company appear in an unsafe light, since the uncertainties in the global markets are still pronounced.

context of the supply chain problems

The difficulties with which KTM and many other companies are faced with are not new. The outbreak of corona pandemic in 2020 revealed the dependence of the economy on global supply chains. These problems were further exacerbated by Russia's attack on Ukraine in February 2022. According to Wirtschaftsdienst, 73 % of the companies that receive preliminary work have had difficulties with deliveries in 2022.

Over 55 % of companies have to struggle with increasing prices for preliminary work or intermediate products, a fact that is largely due to geopolitical tensions and pandemic. The industrial sectors that depend on a stable supply of components and the hospitality industry are particularly affected. The effects of the disorders in the supply chains are far -reaching and represent a significant challenge for both large and small businesses.

The latest developments at KTM impressively show how fragile and vulnerable the global supply chains are and what consequences can result in the production ability and the economic stability of companies.