But confusion remains over the long-term plan
After receiving a cash injection of $A90m, KTM has restarted production at its Mattighofen factory in Austria. It has revealed it is running one shift only but won’t say what models it’s assembling. However, the cash has come from Indian giant Bajaj, which holds a 49.9 per cent stake in Pierer Bajaj AG, which in turn owns 75 per cent of KTM’s parent, Pierer Mobility AG.
It’s being reported in India that the KTM 390 Enduro is about to be launched there, followed by the 390 SMC, so it’s not hard to work out what bikes are KTM’s focus.
Bajaj’s board recently agreed to make $A275m available for international investment. KTM creditors have said another $A180m is needed to be raised for production to continue in the short term.
KTM has debts of $A5.5 billion, with creditors not due to make a public statement until late May.
The news blackout has caused many theories to swirl around, as potential white knights circle the stricken brand. There has been talk of the entire company being moved away from Austria if either Bajaj or CFMoto, another major partner, step in to save it. However, this has been hosed down by both parties, with sources in India saying Bajaj isn’t interested in running KTM – but is keen to remain as an investor.
With just a few hundred of KTM’s 1700-plus staff back at work in Mattighofen, prospects look bleak for this industrial district. Pierer Mobility owns or has a financial interest in local foundries, of which at least one has already gone bust, as well as companies reliant on KTM that make pistons, conrods and other components.
KTM also has assembly facilities in India and China under joint-venture agreements. This sorry saga looks like it could have a huge effect on the global motorcycle market.
