KTM accelerates towards bankruptcy despite recovery efforts
One of the most renowned sports motorcycle manufacturers, KTM, has announced bankruptcy. The company estimates losses in the hundreds of millions of euros. It has imposed a complete halt in production for two months, alongside a single-shift work system. These measures have not led to any improvement.
The well-known Austrian motorcycle manufacturer KTM is facing serious financial difficulties. It plans to file for bankruptcy on November 29 at 2:00 PM ET, while simultaneously initiating the process of restructuring under court supervision, according to the portal polskiobserwator.de.
The root of KTM's issues lies in a significant financial deficit amounting to hundreds of millions of euros. Thousands of unsold vehicles remain in warehouses.
Employee concerns
This situation adversely affects the company’s 3,500 employees, who were apprised of the crisis at a company meeting on November 26.
As reported by the portal RUHR24, the company lacks the funds to pay salaries for November or the traditional holiday bonuses.
The forecasts for the year 2024 are also bleak, with the company anticipating further losses in the hundreds of millions of euros.
Recovery strategy
To ameliorate its situation, KTM has implemented extensive recovery measures. It halted production entirely for two months and shifted to a single-shift work system.
These measures have been termed a "Boxenstopp" by the company’s management, meaning a necessary technical pause aimed at getting back on track, explains the portal polskiobserwator.de.
