Several measures Motorcycle manufacturer KTM is on the brink
The well-known motorsport brand is struggling with low demand. A hoped-for cash injection is not in sight. The company wants to shrink itself back to health.
27.11.2024, 10:10
27.11.2024, 10:25
dpa
The ailing motorcycle manufacturer KTM AG wants to undergo a restructuring process. The Austrian company currently requires a high three-digit million sum, but the management "does not assume that it will be possible to secure the necessary interim financing in time", according to the owner Pierer Mobility AG in Mattighofen.
KTM will apply for judicial reorganization proceedings under self-administration, it said. The company announced a reduction in production over the next two years in order to reduce inventories and ensure the long-term survival of the KTM Group.
Job cuts and a brake on production
In response to the slump in demand, the company had already announced in mid-November that production would be cut back. Around 300 jobs will be cut by the beginning of 2025. Production is to be suspended from Christmas until the end of February. Previously, 700 jobs had already been cut this year. KTM currently employs around 5,000 people in Austria.
KTM is part of the Pierer Industrie Group, which announced on Monday that it would initiate European restructuring proceedings in accordance with the Restructuring Regulation (ReO). Only certain creditors are affected by these proceedings, the remaining liabilities will be serviced as agreed. The group is not over-indebted, it added.
