KTM resumes production in Austria

KTM has resumed production at its main Austrian locations and signalled a return to normality following its well-publicised financial issues.

Sites at Mattighofen and Munderfing, both in the Austrian state of Upper Austria, have restarted operations after an “intensive planning and preparation” phase. 

According to KTM, all production areas will operate on day shifts, with a full-time, five-day working week. Production will run uninterrupted from now until the Christmas break. Supply chains have also restarted. 

This will allow approximately 1000 production employees to return to their jobs.

KTM AG CEO, Gottfried Neumeister, gave special mention to the employees, who faced uncertainty over their unemployment during the company’s financial catastrophe.

“Special thanks goes to our employees, who have contributed significantly to making this restart possible with their great commitment, flexibility, and team spirit over the past few months,” said Neumeister in a statement.

“Their dedication during one of the most challenging phases has been and remains a key factor in the company’s continued development.”  

Production will initially focus on the brand’s off-road range, as well as the new LC4 platform which will power the 690 models, as well as Husqvarna’s 701 models. 

KTM’s exact future is still unclear, as Bajaj Auto looks to exercise a call option agreement and take majority control of the company. 

It follows months of financial uncertainty, after the company entered self-administration last November. Following a legal restructuring period, KTM emerged from the crisis intact, but was forced to pay creditors 30 per cent of the debt it owed. Key shareholder Bajaj Auto helped pay that debt.