Job losses, production stops, liquidity needs, restructuring – these keywords are currently inextricably linked to the motorcycle manufacturer KTM in crisis. Pierer Mobility AG is working hard to secure financing. One name keeps coming back: Mark Mateschitz.
Since Mark Mateschitz has founded a company together with Stefan Pierer and will in turn bring this into the newly established Robau consortium to join Rosenbauer together with two companies from the Raiffeisenlandesbank Oberösterreich in the first step and take over the majority of the fire brigade supplier taking in the second step It is clear that the heart of the Red Bull heir is also for the industry.
By joining the company in Leonding (Upper Austria), the aim is to secure jobs in Austria – a very strong sign in times of increasing emigration from the Alpine Republic and Europe, as the company becomes increasingly uncompetitive as due to higher wages and production costs.
Mateschitz is now also traded as a hot stock at Pierer Mobility AG, and the “Salzburger Nachrichten” reports concrete evidence. The motorcycle manufacturer from Mattighofen (Upper Austria), namely KTM AG, is in financial difficulties and has an urgent need for liquidity amounting to a three-digit million amount. Negotiations with financial creditors and potential investors are in full swing.
The time pressure is great
It is still unclear what the solution will ultimately look like and whether Mateschitz actually plays a role here. But the time pressure is great. And the connection between KTM and Red Bull was not only sparked by the plans at Rosenbauer; the Red Bull logo has been an integral part of KTM motorcycles for years when used in racing.
300 employees have to leave
At the same time, measures have already been taken in the area of personnel: 300 production employees have to leave, and administrative savings are also being made. Motorcycle assembly will be completely shut down in January and February. During that time, all employees will take a pay cut and earn as if they were working 30 hours a week.
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.
