Which investors are participating? Will Stefan Pierer stay on board? How many more jobs will be lost in total? There are currently many open questions about the bankrupt motorcycle manufacturer KTM and about which there is a lot of speculation. The idea of extending the production stop until the end of March is completely realistic and not a buffer for staff and suppliers.
Eleven days before Christmas, production at motorcycle manufacturer KTM temporarily went out. Production in the Innviertel has been at a standstill since the evening of December 13 – and will remain so until the end of February 2025.
But: Apparently the leading company from Mattighofen (Upper Austria), which has gone bankrupt, is considering extending this stop until the end of March in order to sell the high stocks in the meantime.
Vote on the restructuring plan on February 25
Extending the production stop is currently a possibility, apparently not yet decided – but in any case it is news that will not let the motorcycle manufacturer’s employees and suppliers sleep well. After all, many are currently hoping that something like everyday life can return to KTM immediately after the vote on the restructuring plan at the regional court in Ried im Innkreis on February 25. An extension of the production stop would mean a lot, but certainly not a return to normality.
If you stop, the following applies: stay at home and receive wages for a 30-hour working week
What has been established so far is that production employees will remain completely at home in January and February, but will receive wages for a 30-hour working week during this time. The majority of the remaining working population will also work less in this phase and therefore forego their salary.
The search for investors is in full swing
To complete the restructuring, KTM urgently needs fresh capital. During the reporting meeting on December 20, Peter Vogl, restructuring manager of KTM AG, presented three non-binding but concrete offers from investors, including from Pierer’s Indian partner Bajaj and from CF Moto, also a company closely linked to KTM. It is currently unclear whether and which of these will actually become reality and whether new investors will be found. Pierer Mobility AG and KTM AG co-director Gottfried Neumeister said on December 20 that they expect “many interested parties to come forward in January.”
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.
