At the end of February the brand seemed to have been saved from the abyss, but the situation has deteriorated enormously in a short time. The latest news: barely a month after production was restarted, the factory doors will close again. KTM CEO Gottfried Neummeister has announced that production has been stopped again until 27 July.
You wonder how long it can go well, how long it will take before the plug is finally pulled out of KTM. Earlier this week we wrote that the Pierer Mobility AG, in Facto KTM, is unable to repay the 30% debt burden, an amount of 600 million euros, before 23 May, the deadline that had agreed with the Pier Mobility AG with the creditors.
As if that news was not bad enough for KTM, it went from bad to worse in a few days. After getting the production to be gently started again last month, it was stopped again until the end of July. The reason: serious problems with suppliers have made it impossible to continue production.
The stocks that were still present at the factory at the time of resuming production were only for 4,200 engines. However, KTM is currently unable to supplement the stocks, so that production has been stopped again, this time at least until 27 July.
When KTM stopped the production last year, no new parts were ordered. And when production was resumed, those suppliers with which KTM did business were not eager to deliver parts, there was no confidence that KTM could pay the bills.
– Thanks for information from Motorfreaks.