On Monday, the first working day in KTM's production in Mattighofen after the insolvency announcement went according to plan. After a three-month break, work resumed from morning until afternoon. The restart in single-shift operation began as planned, and production will be gradually increased, according to the company.

First Motorcycles from KTM Factory on Thursday

Initially, everyday activities of motorcycle production - delivery and inspection of goods, various pre-assemblies, start of model and prototype construction - are on the agenda. The entire global supply chain also needs to be reactivated. The first motorcycles are expected to roll off the assembly line starting Thursday. Full capacity is aimed to be reached within three months. Further details, such as how many workers have already returned to the factory, will not be provided by the company, according to a spokesperson.

KTM Investor Search Continues

The insolvency is not yet completely overcome: The restructuring plan was accepted by the creditors, and an initial cash injection of 50 million euros from the Indian co-owner Bajaj enabled the ramp-up of the factory. However, by the end of March, an additional 100 million euros are needed to secure operations in April and May. The 30% creditor quota - a total of 600 million euros - must be paid by May 23. For the latter, an investor is needed. An orderly search process is underway, with several interested parties reportedly involved.

Recently, names have repeatedly surfaced, such as Stephan Zöchling, co-owner of the exhaust manufacturer Remus and new chairman of the supervisory board of KTM's parent company Pierer Mobility, or BMW - the car manufacturer has apparently already withdrawn from the race. However, there is no really reliable information on this. Only this much: There is "great interest," and all interested parties still remaining in the process led by Citibank are interested in maintaining the location, KTM CEO Gottfried Neumeister assured after the creditors accepted the restructuring plan. Whoever comes on board will still have to await antitrust approvals. Until approval, external capital might be needed. After the acceptance of the restructuring plan, Stefan Pierer has definitively resigned from the board of KTM AG. The co-CEO resigned his board mandate, leaving CEO Gottfried Neumeister in sole leadership.

Economics Minister Hattmannsdorfer: "Day of Hope"

"Today is certainly a day of hope," said ÖVP Economics Minister Wolfgang Hattmannsdorfer regarding the resumption of production at KTM on Monday in the ORF's Ö1 "Morgenjournal." However, the situation remains challenging: It is now about establishing a stable investor situation. Concerns that the motorcycle manufacturer might shift its production more towards India in the future, according to Hattmannsdorfer, show the "upheavals facing the economy" with regard to competitiveness in Europe and Austria.

(APA/Red)

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