The rumor mill is churning

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Motorcycle production in Mattighofen has been at a standstill since December 13.

(Bild: Wenzel Markus)

Which investors will step in? Will Stefan Pierer stay on board? How many more jobs will be lost? There are many questions surrounding the insolvent motorcycle manufacturer KTM that are currently unanswered and the subject of much speculation. The idea of extending the production stop until the end of March is a very realistic one, and is not a comforting one for the workforce and suppliers.

Eleven days before Christmas, the lights temporarily went out at motorcycle manufacturer KTM's production facility. Production in the Innviertel region has been at a standstill since the evening of December 13 - and is set to remain so until the end of February 2025.

However, the leading company based in Mattighofen (Upper Austria), which has slipped into insolvency, is apparently considering extending this shutdown and extending it until the end of March in order to sell off the high stock levels in the meantime.

Vote on restructuring plan on February 25
The extension of the production shutdown 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 KTM will be able to return to something like normality 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 be many things, but certainly not a return to normality.

Our most important concern is to preserve as many jobs as possible. We are looking for new investors and are holding talks with all creditors in order to find a sustainable solution. We are having very good and constructive talks with the banks in particular.

Gottfried Neumeister, Co-CEO der Pierer Mobility AG und der KTM AG, am 20. Dezember nach der Berichtstagsatzung am Landesgericht Ried

In the event of a stop: stay at home and receive wages for a 30-hour week
One thing is certain so far: the production employees will stay at home completely in January and February, but will receive their wages for a 30-hour week during this time. The majority of the rest of the workforce will also reduce their working hours during this phase and therefore forgo their salary.

Search for investors is in full swing
KTM urgently needs fresh capital to complete the restructuring. At the reporting meeting on December 20, KTM AG restructuring administrator Peter Vogl presented three non-binding but concrete offers from investors, including from Pierer's Indian partner Bajaj and from CF Moto, another company closely linked to KTM. Whether and which of these will actually materialize and whether new investors will be found remains to be seen. Pierer Mobility AG and KTM AG Co-Managing Director Gottfried Neumeister said on December 20 that they expect "many more interested parties to come forward in January".