Financial injection needed

Crisis at KTM: Will Mateschitz now be the savior?

In the various racing classes, the Red Bull logo is an integral part of KTM bikes, so the connection to Mark Mateschitz (right) is obvious. However, the motorcycle manufacturer now emphasizes that getting involved is not an issue.

(Bild: Krone KREATIV/AFP (2))

Job cuts, production stoppage, liquidity requirements, restructuring - these buzzwords are currently inextricably linked with motorcycle manufacturer KTM, which is in crisis. Pierer Mobility AG is working flat out to put together a financing solution. One name comes up again and again: Mark Mateschitz. A connection that Pierer Mobility denies, however.

Since Mark Mateschitz founded a company with Stefan Pierer and will in turn contribute this to the newly founded Robau consortium in order to acquire a stake in Rosenbauer together with two companies of Raiffeisenlandesbank Oberösterreich in the first step and to take over a majority stake in the fire equipment supplier in the second step, it is clear that the Red Bull heir's heart also beats for industry.

By investing in the company in Leonding (Upper Austria), the aim is to secure jobs in Austria - a very strong signal at a time when companies are increasingly moving out of the Alpine republic and Europe because they are becoming less and less competitive due to higher wage and production costs.

Mark Mateschitz joins Stefan Pierer and two companies from Raiffeisenlandesbank Oberösterreich in acquiring a stake in Rosenbauer.

(Bild: Krone KREATIV/Rosenbauer International, IV OÖ/Pelzl, APA-PictureDesk, Horst Einöder)

Mateschitz has now also been tipped as a hot stock at Pierer Mobility AG, with the "Salzburger Nachrichten" reporting concrete indications. The motorcycle manufacturer from Mattighofen (Upper Austria), in this case KTM AG, is in financial difficulties and has an urgent need for liquidity amounting to a three-digit million sum. Negotiations with financial creditors and potential investors are in full swing.

The negotiations and deliberations are at an early stage. Therefore, no concrete statements can yet be made about the outcome of the negotiations, the conditions and the scope of additional financing.

Die Pierer Mobility AG über die Gespräche zur notwendig gewordenen Überbrückungsfinanzierung

"There are no talks"
What the final solution will look like remains to be seen. However, Mark Mateschitz is not expected to play a role in it, at least according to Pierer Mobility AG. "There are no talks about Mark Mateschitz joining Pierer Pierer Mobility and KTM," the company announced on Friday afternoon.

300 workers have to go
Irrespective of the outcome of the talks, measures have already been taken with regard to personnel: 300 workers in production will have to go, and cuts will also be made in administration. Motorcycle assembly will be completely shut down in January and February, during which time all employees will take a pay cut and will earn the same as if they were working a 30-hour week.