KTM revs up restructuring plans amid financial turmoil
One of the most renowned sports motorcycle manufacturers, KTM, has announced bankruptcy. The company estimates losses amounting to hundreds of millions of euros. Consequently, it has imposed a complete halt in production for two months and switched to a single-shift work system. However, these measures have not yielded any improvement.
The well-known Austrian motorcycle manufacturer KTM is grappling with serious financial difficulties. It plans to file for bankruptcy on 29 November and simultaneously intends to initiate the process of restructuring under court supervision, reports the portal polskiobserwator.de.
The source of KTM's problems is a substantial financial deficit, which totals hundreds of millions of euros. Thousands of unsold vehicles remain stored in warehouses.
Employee concerns
This predicament adversely affects the company's 3,500 employees, who were informed about the crisis at a company meeting on 26 November.
As reported by the portal RUHR24, the company lacks the funds to pay salaries for November or the traditional holiday bonuses.
The forecasts for 2024 are equally pessimistic, with the company projecting further losses amounting to additional hundreds of millions of euros.
Recovery plan
To remedy its situation, KTM has implemented comprehensive recovery measures. It has enforced a complete halt in production for two months and adopted a single-shift work system.
These measures have been described by the company's management as a "Boxenstopp," signifying a necessary technical pause aimed at getting back on track, explains the portal polskiobserwator.de.
