Europe's largest motorcycle manufacturer is insolvent

KTM is insolvent. Europe's largest motorcycle manufacturer, which still owns the Husqvarna and Gasgas brands as well as MV Agusta, intends to file for debtor-in-possession restructuring proceedings the day after tomorrow. The company is said to have payment obligations in the high three-digit million range. After recently announcing austerity measures, KTM apparently fears that three creditors could demand early repayment of around a quarter of a billion euros, according to the Viennese newspaper "Standard".

The aim of the proceedings is to agree a restructuring plan with the creditors within 90 days. There is talk of a "redimensioning of production" in order to reduce the excess stock at KTM and the dealers over the next two years. "This will result in a reduction in operating performance at the Austrian sites totaling over one billion euros in 2025 and 2026," said the company, which employs around 6,000 people.

In addition to overproduction, insiders also see quality problems as a cause of the troubled times in Mattighofen. Added to this are several investments in the recent past. The Austrian motorcycle manufacturer is part of KTM boss Stefan Pierer's Pierer Mobility AG, which has built up a larger network of companies in recent years. As an independent family business, KTM Fahrrad GmbH is not affected by the insolvency of the motorcycle division. (aum)