(Motorsport-Total.com) – The financial problems of motorcycle manufacturer KTM continue to make waves in Austria. Up to 750 employees will lose their jobs by the end of the year. November wages including Christmas bonuses were no longer paid out by the employer. The employees should receive their outstanding money through the insolvency remuneration fund.
The submitted restructuring plan will be voted on at the end of February
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Initially, KTM said that December wages would be paid early to avoid hardship cases. They wanted to pay out an advance of 90 percent of their December wages before Christmas. The employees had the company’s commitment.
However, that is not happening now. A release from the Upper Austrian Chamber of Labor on Friday said: “The insolvent company from Mattighofen is apparently unable to carry out the promised transfers.”
Andreas Stangl, President of the Upper Austrian Chamber of Labor, is annoyed: “There is simply no longer any handshake quality in the management of KTM.” Stangl holds management and primarily CEO Stefan Pierer accountable.
Opposite that ORF says Stangl: “It would be sensible if Mr. Pierer would also explain why promises made by his company to employees do not apply. It cannot be the case to always disappear and let us do the work. That is not enough for us. “
“Mr. Pierer collected the dividends and the millions. Now people have to overdraw their accounts and can’t afford anything. If you have decency, you should give people their money so that they can spend Christmas.”
Photo series: Dream in orange: All MotoGP bikes from KTM since 2016
In a broadcast, the PRO-GE and GPA unions spoke of “a slap in the face” for those affected. “You are now paying the price for apparently wrong management decisions,” say chairmen Reinhold Binder and Barbara Teiber clearly.
The Chamber of Labor wants to ensure that employees receive their claims through the insolvency remuneration fund as quickly as possible. When exactly this will be possible is not yet known. But it won’t happen until next year.
KTM has confirmed that December wages will not be paid early as promised. But: “The plan is that salaries and wages for December, January and February will be paid out regularly,” KTM told them Upper Austrian news.
Production stop earlier than originally planned
Friday December 13th is also the day from which production in Mattighofen will come to a standstill. This is a week earlier than originally planned. The production lines come to a standstill in January and February. Management wants to resume production with single-shift operation from March.
© KTM
The production lines in Mattighofen stand still for two and a half months Zoom
According to the bankruptcy filing, KTM has an inventory of 130,000 unsold motorcycles. It remains unclear what will happen to the entire inventory. From 2025, the Euro 5+ emissions regulations will apply to motorcycles in Europe.
From January 1, 2025, no models below the Euro 5+ standard may be newly registered for the first time. There are exceptions for “expiring series”. These must be requested by the manufacturer. Only very limited numbers may be approved until the end of 2026.
Creditors will vote on the restructuring plan at the end of February
On November 29th, KTM AG and its subsidiaries KTM Components GmbH and KTM F&E GmbH submitted a self-responsible insolvency application to the regional court in Ried im Innkreis. The liabilities are said to amount to up to 2.9 billion euros.
© KTM
Decisive weeks lie ahead for motorcycle manufacturer KTM Zoom
The first important court date is before Christmas. The first creditors’ meeting and reporting meeting will take place on December 20, 2024. The general examination meeting will take place on January 24, 2025.
An appointment two months later will be crucial. Then there will be certainty about what happens next. Because on February 25, 2025, the creditors will negotiate and vote on the restructuring plan offered. All three meetings take place at the Ried Regional Court.
Supplier Vöcklabruck metal foundry files for bankruptcy
On Friday it was also announced that another KTM subsidiary had to file for bankruptcy. Vöcklabrucker Metallgiesserei GmbH was only taken over by KTM Components GmbH at the beginning of September.
The company, founded in 1955, produces cast aluminum parts for, among other things, motorcycle swing arms, wheel hubs and gearbox housings. In addition to KTM, customers also include BMW, Siemens and Rosenbauer. KTM accounted for half of sales.
The company had to open bankruptcy proceedings at the Wels regional court because the wages due on December 15th cannot be paid. According to the credit protection association KSV1870, the liabilities should be around 3.5 million euros. 134 employees are said to be affected.
© IV OÖ / Pelzl
Stefan Pierer has not yet made any public statements Zoom
According to KSV1870, the management of the Vöcklabruck metal foundry assumed that KTM AG would provide the necessary liquidity with an advance payment for the period of the planned production stop.
This was initially promised by the chairmen of KTM AG, but could not be carried out due to their own bankruptcy filing. According to KSV1870, a renovation of the Vöcklabruck metal foundry is not planned due to a lack of financing.
Stefan Pierer has been President of the Upper Austrian Industrial Association (IV) since June 2022. He still officially holds this position. However, he has not taken any tasks since the beginning of December. Pierer has not made any public statements since the KTM bankruptcy became known.
