It is a very important step in the direction of normal – and yet there are many question marks. 94 days after KTM was sent into the motorcycle production in Mattighofen in the forced break, the explosion phase of the assembly lines on Monday begins. In the background, investor discussions are in full swing during the recently closed in the bankruptcy.
Due to the much too high inventory, motorcycle production in Mattighofen was sent to the forced break: the traditional Christmas rest had started a week earlier, after which the assembly no longer took place. So far.
Because today, Monday, the official explosion phase of the production starts on which KTM is emphasized. The assembly lines are gradually increased almost three weeks after the successful coordination of the renovation plan. Four production lines are planned, they are brought to life in low surgery. With full use, you are expected within the next three months, ie Mid -June.
The first motorcycles walk off the assembly line on Thursday
Despite the turbulence of recent months, the resumption of production must be as normal as possible. The first few days are characterized by the delivery and inspection of goods, various pre-assembly and also in the sign of the start of the sample and prototype reconstruction. The first motorcycles then run from the assemblage line on Thursday.
Parallel to motorcycle production, the operation at KTM components GmbH also starts again. Various parts, such as suspension forks, are manufactured there for the PS -Sterke bikes.
In the course of the bankruptcy procedure, KTM was separated from 470 employees. The remaining 1,000 employees in the production environment have been at home since mid -December and received a wage in time as for a week of 30 hours.
Indian co -owner finances the resumption of production
The comeback of the production half but is an important step in the direction of normal and daily life – there are many question marks. The fact is: the 50 million euros, which Co owner Bajaj recently shot, apparently only cover the costs at the end of March.
After that, another 100 million euros were needed to get production going. For this there is a fundamental concession of the Indian company to do this amount too, but there is nothing. Immediately after the successful coordination of the renovation plan for the KTM group, Pierer Mobility AG announced that in order to finance the 30 percent rate for the creditors and the further production of fresh capital in the amount of around 800 million euros. The investment process has been carried out, no white smoking reding.
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.
