Things are getting from bad to worse for KTM as the company has announced that its Austrian manufacturing facility will be shut down till the end of July 2025. This is not good news for the company as it reopened the Mattighofen production plant only last month. According to the German media outlet, 1000 PS, has cited supply chain challenges, which have resulted in the lack of components. According to the report, the KTM plant has enough components to manufacture only 4,200 motorcycles. The company has not revealed which bikes it will be able to roll out. Hence, the Austrian company has decided to press the pause button.
Is KTM shutting shop?
The KTM has been under severe debt of 600 million Euros, which the company has to pay by next month, though it looks quite unlikely. No doubt backroom meeting will take place to extend the timeline. According to the media report, via a video message, the new CEO, Gottfried Neumeister, announced that the factory will stay shut till July 27. The report by 1000PS said, “The employees received the news on Thursday morning via video message from CEO Gottfried Neumeister: Due to serious supply chain problems, it is impossible to continue production as planned. The stocks were only enough for around 4,200 motorcycles, but now there is a lack of essential components. Production in Mattighofen will therefore be suspended until 27. July suspended.”
The reason why KTM is facing a huge shortage of components because previously, when the factory was shut, the company didn’t place any orders. Also, the suppliers didn’t have faith in KTM on whether they could foot the bill.
No layoff on the cards
KTM addressed the dark cloud hovering over everyone’s mind, whether the company would be forced to reduce the workforce. Neumeister said, “The most important thing in all decisions is the successful future of KTM and the long-term safeguarding of jobs.” The two-wheeler manufacturer has decided to reduce the working time to 30 hours per week for around 3,000 workers in Austria and adjust the salaries based on that. KTM will adopt a four-day work schedule from Monday to Thursday, and skilled workers will function from home based on the new 30-hour per week model.
