KTM Resumes Full Production Following Bajaj Acquisition

After a challenging period, KTM, the prominent European motorcycle manufacturer, has successfully resumed operations across its four production lines in Mattighofen and Munderfing. Approximately 1,000 employees have returned to regular work schedules following a phase of meticulous planning and preparation that enabled this transition back to full production capacity. The company reports that its supply chains have been fully restored, ensuring reliable global delivery and availability of products.

Gottfried Neumeister, the managing director of KTM, emphasized the importance of this restart, stating that it provides the stability necessary for the company to refocus on quality, customer relations, and ongoing development. The workforce will be operating under regular day shifts, adhering to a full-time, five-day workweek. This operational shift signifies an adjustment for employees, particularly as the company will continue production without the customary summer break until the regular holiday pause at Christmas.

The manufacturing process will kick off with new models from the Enduro series, including the MX and Enduro Competition lines, as well as a completely new LC4 platform for the well-established KTM 690 Enduro-R and KTM 690 SMC-R models. Additionally, KTM plans to maintain and potentially expand its product offerings across various engine sizes, covering a range from 50 to 1300 cubic centimeters. The continuation of the Gasgas brand is also assured, alongside advancements in electric vehicle technology and the WP sub-brand, which specializes in producing suspension components.

In May, Bajaj Auto International Holdings B.V., an Indian company, acquired a majority stake in the financially troubled Austrian motorcycle maker, which has been a long-time manufacturing partner for KTM. Bajaj, having previously held a 49.9% stake in Pierer Bajaj AG, which in turn owns 74.5% of Pierer Mobility AG (the parent company of KTM, Husqvarna, and Gasgas), provided approximately 600 million euros to avert KTM's liquidation. This financial backing was critical in allowing the company to execute its restructuring plans, which were formalized by the local court in Ried im Innkreis in June, thus paving the way for the recommencement of production.

KTM faced insolvency in November 2024 due to a sharp decline in demand, excessive inventory levels, and quality control issues, resulting in the departure of CEO Stefan Pierer and the loss of approximately 1,800 jobs. As the company transitions back to full production, there remains a need for workforce replenishment in various sectors, including IT, finance, and marketing, particularly in the Mattighofen and Munderfing locations.