A reduction of up to 300 employees in Mattighofen and Munderfing was planned for this year. Now there could be considerably more that should go to the Innviertel motorcycle manufacturer KTM. Where are the reasons for this? and when will there be clarity? We asked Pierer Mobility board member Viktor Sigl.
Initially, there was talk of a maximum of 300 employees who will have to move to Mattighofen and Munderfing this year due to relocations to locations in India and China; Then-owner Stefan Pierer recently said that as many as 500 employees would be affected…
Cost reduction program will be “continued intensively”
Although Pierer Mobility AG (KTM, Husqvarna, GasGas, MV Agusta) managed to achieve a profit before interest and taxes of 160 million euros on a turnover of 2.66 billion euros last year, the management of the motorcycle and e-bike manufacturer together on a cost reduction program, which will be continued “intensively” this year, as recently announced.
But how much will the savings be applied to staff? Board member Viktor Sigl explains that currently ‘only’ a reduction of 300 employees in production and development has been determined.
Clarity in the summer
“We will see how the market develops in the first half of the year,” said the manager. Then it becomes clear whether we have to apply the brakes again in the motorcycle assembly and the adjacent areas can be affected again;
In the US, motorcycles are purchased on credit or through leasing
What is causing KTM so many problems is the faltering demand in the US: “Here, most motorcycles are bought on credit or leased. The high interest rates are now having an impact.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
