With a loan of 566 million euros, co-owner Bajaj is ready to finance the big chunks of the salvation! Although this is positive messages in the struggle to save KTM, rumor starts again behind the scenes. The stronger position of the Indians fears a far -reaching production from production to Asia.
Since Saturday it has been known that Bajaj has secured 566 million euros from a loan with Bajaj, which is a milestone with a view to the 600 million euros, which on Friday 23 May on the account of KTM-AG receiver Peter Vogl. But: what does the greater influence of the Indians at the motorcycle manufacturer mean – and especially for jobs in Austria?
Although KTM announced on Tuesday evening that the financing is for the renovation, but now all formalities still have to be clarified until you publish details, the rumor has already been used. Is production moved to India and Asia?
Already parts of the production at Bajaj and CFMoto
KTM already produces both Bajaj and CFMoto. Due to the increased investment of Bajaj, the Indians could have produced even more motorcycles in their work in Pune. At the moment this is nothing more than speculation. However, the fact is that Austria has come under enormous pressure with a view to production costs. CEO managers from other industrial companies are not fed up with the disadvantages. Energy costs in particular are based on profitability and also the chance to be competitive.
What does that mean for KTM? During the first production of production in Mattighofen from mid -December 2024 to mid -March 2025, it was continued in the partner works in Asia. Gottfried Neummeister, CEO of Pierer Mobility AG and KTM AG, had already unveiled in January during the extraordinary general meeting of Pierer Mobility AG that could help these works with increasing demand. In Mattighofen, only one-shift operation is planned for 2025 and 2026. Motorcycle construction in the Innviertel has been completely quiet since the end of April.
“Deeply connected to Austria in the heart”
During the annual General Meeting in January, a small shareholder expressed his concern about the jobs in the Innviertel. At that time, Neummeister could not be nailed, replied: “Brand, quality and sales channel are the essence that must be protected – that remain with certainty in Austria.” After he had accepted the renovation plan a month later, he was happy that he was “able to continue the great story of KTM”: “For our Austria location, that we are deep in the heart. KTM remains one of the best employers in the upper Austrian industry.” The only question is: for how many employees? Since the beginning of 2024 to the end of March 2025, the staff of the Pierer-Mobility Group has fallen with more than 1850 employees.
The new business agreement, which applies until July 31, and which became necessary because production is still standing, affects around 3,000 employees who have been paid for a week of 30 hours since the beginning of May. This measure is met for the long -term maintenance of the jobs at KTM, they emphasize. It is hoped that the production can actually be so high again with August and the engine then runs smoothly.
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.
