From Monday, no operations at Mattighofen KTM factory

The factory of the insolvent motorcycle manufacturer KTM in Mattighofen (Braunau district) will come to a standstill again from Monday for three months. There is a shortage of components. Starting May 1st, a company agreement will come into effect for the workers and employees, which is associated with salary reductions. However, both management and the union are confident that there will be a future for the factory in the Innviertel region.

Earlier Summer Break

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 May to July. The goal is to preserve jobs.

Delivery delays are cited as the reason for the renewed production stop. Due to liquidity constraints during the restructuring process, they could only rely on in-house and supplier stock for 4,200 motorcycles and could not take on new commitments. This has led to bottlenecks. CEO Gottfried Neumeister is confident, however, that the factory will be able to produce at full capacity on four lines again in August.

KTM Facing a Day of Destiny

Until then, a day of destiny still awaits KTM: For the restructuring of KTM AG, KTM Components GmbH, and KTM Research & Development GmbH, a restructuring plan quota of 30 percent, payable by May 23, 2025, has been proposed. For this, 600 million euros need to be raised.

(APA/Red)

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