KTM Stops Production (Again)
KTM has stopped production again – just when you thought things are looking better since their restructuring plan was approved by creditors in Febuary.
This latest round of hiatus occurred merely weeks after restarting production. KTM says it is due to lack of parts. More worryingly, full production may not resume until the end of July 2025.
According to German news outlet 1000PS, KTM has not been able to source critical parts for its bikes. It is as a result of production stopping last year, during which no new parts were ordered for around three months as it went through its financial crisis.
KTM was forced to stop production the first time around when the company went into self-administration. Hundreds of employees were also retrenched, and several racing activities were placed on the back burner.
The news of KTM pausing its production for a second time reportedly came during a video call on Thursday morning, where the brand’s CEO Gottfried Neumeister told employees: “Due to serious supply chain problems, it is impossible to continue production as planned. Stocks were only sufficient for around 4,200 motorcycles, and now there is a shortage of essential components. Production in Mattighofen will therefore be suspended until 27 July.
Not surprisingly, KTM’s attempts to restart production last month were met with caution from some suppliers. As such, some have halted further production or supplies to KTM altogether, despite KTM’s confidence in finding a solution and that production in Mattighofen could restart at full capacity.
KTM’s parent company, Pierer Mobility, faces a financing gap of around €600 million (roughly £5.1m), which needs to be raised by 23 May as part of the agreement with creditors.
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