Community feels the consequences

Bankruptcy at KTM: First ex-employees pack their bags

KTM has been a restructuring case since November 29, 2024, and production has been at a standstill since the evening of December 13. The second wave of redundancies was completed this week.

(Bild: Scharinger Daniel)

The salaries and wages for December have been transferred; the second wave of redundancies has ended; negotiations with investors are taking place behind the scenes - the battle for the future of KTM is in full swing. "All we can do at the moment is wait and see," says Daniel Lang, the mayor of Mattighofen, where the consequences of the crisis are already becoming apparent. The first ex-KTM employees have apparently left.

Motorcycle production in Mattighofen is at a standstill at least until the beginning of March, which is why around 1000 workers are currently at home; a 30-hour working week applies to the employees of the lead plant until further notice - these are just two of the measures that are intended to help the motorcycle manufacturer find its way out of the crisis.

Negotiations on the sale of MV-Agusta shares are underway
The mountain of debt of around 1.8 billion euros also means that the majority stake in the Italian luxury brand MV Agusta, which was only acquired in March 2024, will be sold again; negotiations are currently underway. There were also job cuts.

Of course, I keep talking to people who work at KTM. They say that they are currently waiting to see what happens in the coming weeks and months. Others are already reorienting themselves, as you can hear.

Daniel Lang, Bürgermeister der Stadt Mattighofen

At the beginning of December, 250 employees were made redundant and now, in the last two weeks, almost 300 more have found out that they have to leave the company. In contrast to the first wave, this time there was no works meeting by the Chamber of Labor and AMS at which the dismissed employees were fully informed. Instead, the insolvency law department of the Upper Austrian Chamber of Labor sent small teams to the Innviertel region. This week, for example, two employees were on site at KTM from Monday to Thursday to advise dismissed employees.

What is the mood like in Mattighofen at the moment? "You can tell that people are a little more confident that things will continue, but it's totally uncertain how," says Daniel Lang. The 36-year-old is the mayor of the town where KTM has its headquarters and main production facility. He and his team are also up in the air. The city has already postponed individual projects. They are waiting.

"It's completely open as to how things will continue with the site - that's making us sweat a little at the moment," admits Daniel Lang.

(Bild: Fesl Manfred)

Snide remarks about lower salaries for municipal jobs fall silent
The town has posted vacancies, for example in the kindergarten or outdoor pool, with the AMS. The first applications have already been received, says Lang. "Two years ago, we had almost no applications. When they looked at the salary, they said: 'I'd rather stand on the conveyor belt at KTM and get double that'. Job security is becoming more important again."

The crisis at KTM and its consequences are becoming increasingly noticeable for the city. Between November and December, the number of main residences fell by 37. "That's a very big drop, it's never been like this since I've been mayor," says Lang. Although the number of main residences increased over the year, the increase was significantly lower than in 2023. "I believe that these are former KTM employees who moved away because they were looking for work elsewhere," says the politician.

Incidentally, the city itself is acting as a creditor in the insolvency proceedings: It is concerned with outstanding contributions for water and sewerage and the like.