KTM Faces Insolvency as Financial Crisis Deepens

The Austrian motorcycle manufacturer seeks court-supervised restructuring as it struggles with a liquidity shortfall and declining demand.

KTM AG will file for a court-supervised restructuring process on Friday due to a liquidity shortfall requiring a high three-digit million euro injection.
The company has already cut 700 jobs this year and plans to eliminate 300 more by early 2025, reducing its workforce in Austria from 5,000 employees.
Production will halt from December to February, with operations resuming under a single-shift model to address overstock and stabilize the company.
KTM's financial struggles stem from declining sales in key markets like Europe and the U.S., despite reporting record revenue in 2023.
Parent company Pierer Mobility has assured that KTM is not over-indebted and aims to protect creditors through the restructuring process.