KTM reduces production again starting Monday

The motorcycle manufacturer KTM will introduce a 30-hour workweek for employees starting May 1st. A KTM spokesperson cited missing components as the reason for the production interruption, confirming a report by ORF.

KTM Moves Usual Summer Break Forward

"From May 1st to July 31st, 2025, a new company agreement will come into effect. The board has agreed on this in coordination with the insolvency administrator and the works council after good and constructive discussions. The company agreement stipulates, on one hand, that the usual summer break at KTM will be moved from August to July. On the other hand, it includes a regulation to reduce full-time working hours to 30 hours per week with a proportional adjustment of wages and salaries for the validity period of the company agreement. All measures aim to preserve jobs despite the restructuring process," the company agreement states verbatim.

Supply Shortages for KTM Due to "Abrupt Insolvency"

In a video message, the CEO and Chairman of the Board of KTM AG, Gottfried Neumeister, informed the workforce on Wednesday evening. Delays in material deliveries, caused by liquidity shortages during the restructuring process, are cited as the reason for the renewed production halt. Due to the "abrupt insolvency" at the end of 2024, they could only rely on in-house and supplier stock for 4,200 motorcycles. During the restructuring process, it was not possible to take on new obligations for 90 days. Now there are supply shortages, leading to the renewed production halt. Neumeister expressed confidence that the plant could return to full operation on four lines in August.

A few weeks after KTM AG, KTM Components GmbH, and KTM Research and Development GmbH filed for insolvency on November 29th, motorcycle production was already halted once. There was a nearly three-month operational interruption. Around 130,000 motorcycles were in stock, which at least partially do not comply with the Euro5+ emissions standard that has been in effect since this year. On March 17th, production began to gradually ramp up again.

Union Optimistic About Future of KTM

"I think there will be a future for KTM in Mattighofen," says Wolfgang Gerstmayer, managing director of GPA Upper Austria, optimistically. He also emphasized that the supply chains have "more or less come to a standstill" due to the insolvency, and production cannot take place. A company solution was needed for this, and it has now been found. "We hope, of course, that by May 23, there will be an investor who will then secure the continuation of KTM and also the location in Mattighofen."

Nevertheless, the uncertainty among the workforce is great. "The employees are now staying home for the second time after being told that production would ramp up," said the union representative. "And especially in times when life is more expensive than ever, giving up 20 percent of the salary again is a massive cut." However, he praised the management after the departure of Stefan Pierer: "There are now new board members who are working well. They have taken us on board, which was not always the case in the past." The social partnership, which Pierer "never really allowed to emerge," has "come to life," and there have been constructive discussions. "I also have the impression that the people on the board are genuinely interested in continuing the company," said Gerstmayer.

KTM Reduces Production - Economic Councillor Still Confident

Economic Councillor Markus Achleitner (ÖVP) also expressed confidence despite the renewed production stoppage, that "the restructuring course can be successfully continued." The company informed the state of Upper Austria that it is now "the most urgent task" to get the supply chains under control so that normal operations can resume in August. The councillor welcomed the company agreement, which keeps the jobs of the employees despite the current challenges. The Secretary General of the Federation of Austrian Industries (IV), Christoph Neumayer, was surprised by the announcement. "Ultimately, it will be about how the financing succeeds," he referred to the ongoing restructuring process. KTM is an "Austrian flagship company" with a strong "regional impact."

(APA/Red)

This article has been automatically translated, read the original article here.