In November last year, KTM briefly seized production amid reports it had racked up billions in debt, with the future of the iconic brand in the air for a long period.
While production did resume, it didn’t do so at full capacity, with factories operating on limited shifts and without full staff.
That has now changed, with CEO Gottfried Neumeister announcing all of KTM’s circa-1000 employees were “returning to normal operations” at its main facilities in Mattighofen and Munderfing.
“At this point, we would like to express our special thanks to our employees, who, with their great commitment, flexibility, and solidarity, have made this restart possible over the past few months,” Neumeister said.
“Their dedication during one of the most challenging phases was and remains a key success factor for the company’s continued development. The restart of production gives us the stability we need to now fully focus on quality, customer proximity, and further development.”
According to KTM, “all production areas will operate full-time, day shifts with a 5-day week. The current collective agreement for both salaried and blue-collar workers will end as scheduled at the end of July.
“Production will run continuously from July 28th until the regular Christmas break - a summer break is no longer planned. The supply chains have also been fully reactivated, guaranteeing reliable supply and delivery worldwide.”
The announcement comes after KTM’s minor stakeholder, Indian firm Bajaj Auto, said it would not only tip in €800 million ($1.406 billion) to clear some of the debt, but also become its majority stakeholder in May.
Of the €800 million debt clearing package announced in May, Bajaj Auto had already spent €200 million ($351.6 million), with the additional €600 million ($1.055 billion) reported at the time to come imminently.
KTM thrown $1.4 billion lifeline
