Austrian motorcycle giant KTM, Europe’s top motorbike producer, announced plans to file for restructuring under the Austrian Insolvency Act.
Facing plummeting demand and soaring costs, the company revealed on November 26 that it will submit documents to the Linz commercial court by November 29.
Struggling to secure the hundreds of millions of euros needed to stay afloat, KTM has 90 days to negotiate a restructuring plan with creditors. Production will pause in January 2025, resuming in March at reduced capacity to manage inventory. “We’ve become Europe’s largest motorcycle manufacturer. Now we’re taking a pit stop for the future,” said CEO Stefan Pierer.
The crisis has put KTM’s 6,000 employees, including 5,000 in Austria, at risk. While December salaries will be paid, the Christmas bonus will not. More than 700 staff could lose their jobs, even if bankruptcy is avoided.
Founded in 1934 as a car repair shop, KTM grew under Pierer’s leadership after he acquired the motorbike division in 1991. The company sold 280,000 motorcycles worldwide in 2023, but Austria’s worsening economic landscape has hit its manufacturing sector hard.
Other companies are also feeling the pinch. German car parts maker Schaeffler is closing its Berndorf plant, cutting 450 jobs, while Liebherr Group has reduced hours at its Salzburg facility. Austria now ranks last among EU nations in economic growth, with GDP per capita shrinking 1.7% from 2019 to 2024, in stark contrast to the gains seen in countries like Ireland and Greece.
