Motorcycle manufacturer from Austria facing bankruptcy

Parent company also has problems

Austrian Motorcycle manufacturer KTM facing bankruptcy

November 26, 2024 – 3:10 p.mReading time: 1 Min.

Crisis at the Austrian motorcycle manufacturer KTM: The company is missing a three-digit million sum. Now bankruptcy follows.

The motorcycle manufacturer KTM AG has announced that it will file for insolvency and initiate restructuring proceedings with self-administration. The application should be submitted on Friday, the company of industrialist Stefan Pierer said, according to the Austrian news agency APA. According to the company, the financing gap of the Pierer Mobility subsidiary amounts to a three-digit million amount. The parent company Pierer Industrie AG is also undergoing restructuring.

The board of directors of KTM AG justified the step by saying that the necessary interim financing could probably not be secured in time. In addition to KTM AG, the subsidiaries KTM Components GmbH and KTM F&E GmbH are also affected by the application. However, sales companies and other subsidiaries should not be included in the process. The aim is to agree a restructuring plan with the creditors within 90 days.

The plan is to adapt production to demand in order to reduce inventories. These measures will probably result in sales falling by around one billion euros over the next two years. KTM also expects high losses in the three-digit million range for 2024.