KTM before a crucial turning point: Does production stay in Austria?

KTM before a crucial turning point: Does production stay in Austria?

At KTM there are moving times while the company is up to its production facilities. In a worrying week, rumors were loud that BMW Motorcycle could start as an investor and shift the entire production to India. This was fueled by a post on Instagram, in which BMW presented orange -colored motorcycles - a clear indication of a possible takeover, which was quickly deleted. Despite this uncertainty, however, there was a ray of hope: The creditors voted for a renovation plan, which enables KTM to continue, as OE24

Nevertheless, the pressure remains high: KTM needs 100 million euros by the end of March to cover the running costs and maintain production at the Upper Austria location, followed by another 600 million euros by May 23 to pay off the creditors. The Indian co -owner Bajaj has already guaranteed a syringe of 50 million euros to support the company during this critical phase. CEO Gottfried Neumeister made it clear that the investor process is still running and that the identity of new strategic or financial investors remains uncertain, as Financial Express note.

The challenges and debts of KTM

The financial situation of KTM is tense after the company initiated a judicial renovation process last November to create a payment plan for its creditors. KTM has a total of around 2,500 creditors and has been fighting for years with falling sales figures, mainly due to quality and reliability problems in his motorcycles. Despite the current difficulties, KTM managed to find a mutual solution with the creditors to continue.
KTM has the chance to be successful again with the support of Bajaj. While speculation about the possible takeover by BMW did not become a reality, stable financing and returning to profitable sales figures for KTM could be decisive in the future.