Motorcycle manufacturer KTM back in full operation after takeover by Bajaj

KTM is returning to production on all four production lines at its main plants in Mattighofen and Munderfing. Around 1000 employees in production "are now returning to normal operations after a phase of intensive planning and preparation", as KTM announced today. As the supply chains have now been fully restored, supply and delivery are guaranteed worldwide. "The restart of production gives us the necessary stability to concentrate fully on quality, customer proximity and further development," says KTM's Managing Director Gottfried Neumeister and speaks of "strong cohesion within the company".

Employees in all parts of production are working full-time day shifts with a five-day week. The resumption means a change for these employees and workers when the works agreement expires as planned at the end of July, because production will continue from July 28 without the usual summer break until the regular Christmas break.

New start with proven models

Production will begin with new models in the MX and Enduro Competition enduro series as well as a "completely new" LC4 platform for the proven KTM 690 Enduro-R and KTM 690 SMC-R model series and the almost identical Husqvarna 701 Enduro and Husqvarna 701 Supermoto enduro models. The Gasgas brand will also be continued, as KTM writes today. The product portfolio, which currently "covers all major displacement and performance classes from 50 to 1300 cc", will be retained and expanded if necessary. Further development of the electric series can therefore be expected, as well as the continuation of the WP sub-brand, which produces suspension components such as springs and dampers in Munderfing.

In May, the Indian company Bajaj Auto International Holdings B.V. acquired a majority stake in the insolvent Austrian motorcycle manufacturer. This company is KTM's long-standing Indian contract manufacturer. Bajaj had already held a 49.9 percent stake in Pierer Bajaj AG for years, which in turn holds 74.5 percent of Pierer Mobility AG, which owns the motorcycle brands KTM, Husqvarna and Gasgas. In return, Bajaj provided around 600 million euros and thus prevented the liquidation of KTM. In mid-June, the competent district court in Ried im Innkreis confirmed the restructuring plans and thus enabled production to restart.

KTM had gone bankrupt in November 2024 due to a sharp decline in demand, excessive inventories and quality problems. As a result, KTM not only lost its boss Stefan Pierer, which was a condition for the takeover by Bajaj, but also 1800 employees. Some of them now seem to be missing for full production. In its press release, KTM writes that it is "looking for employees in various areas of the company, such as IT, finance or marketing – especially in Mattighofen and Munderfing".

(fpi)