Kit Palmer | December 17, 2024
KTM Employees To Go Without December Salary
Update December 13, 2024
It’s been reported that European KTM AG employees will go without their December pay packets before Christmas.
On Friday, December 13, The Chamber of Labor of Upper Austria issued a statement slamming the manufacturer for apparently breaking its promise to pay wages to its employees.
KTM has been slammed by the Chamber of Labor of Upper Austria for failing to provide December wages to its European staff.
“Before Christmas, KTM wanted to transfer 90 percent of the December salaries to the employees. This was promised to the employees. But now, that will not happen! The insolvent company in Mattighofen is apparently unable to make the promised transfers,” the statement read.
“The November salaries, as well as the Christmas bonuses, were not paid,” said the President of the Chamber of Labor of Upper Austria, Andreas Stangl.
“And now, even before Christmas, this news! There is simply no quality in the handshake between KTM’s management. We, as the Chamber of Labor, will decisively do everything we can to ensure that the employees receive the amounts claimed from the insolvency fund as soon as possible.”
Presidents of PRO-GE and GPA, Reinhold Binder and Barbara Teiber, issued a joint statement, saying, “The employees are now paying the price for obviously wrong management decisions. It will certainly be necessary to examine how such a dramatic situation could have happened and who is responsible for it. We will now do everything we can to ensure that the employees quickly receive what they claim from the insolvency fund, and we will support them during these difficult days and weeks.” CN
The following news is from November 26, 2024
It’s starting to look like all those rumors about KTM struggling recently are true. However, the writing was on the wall after the company announced its plans to scale down some of its racing programs for 2025. Today, KTM and its parent company, Pierer Mobility Group, which also owns Husqvarna, GasGas and MV Agusta, acknowledged that they are indeed experiencing a bump in the road and entering tough times due to slumping sales.
KTM CEO Stefan Pierer (right) and Co-CEO Gottfried Neumeister(left).
Today, KTM CEO Stefan Pierer and Co-CEO Gottfried Neumeister addressed the company’s more than 5000 employees, unveiling a comprehensive plan “to navigate the current financial challenges and ensure a robust future for KTM.”
KTM issued this public release:
Stefan Pierer, CEO of KTM AG: “Over the past three decades, we have grown to become Europe’s largest motorcycle manufacturer. We inspire millions of motorcycle riders around the world with our products. Now we are taking a pit stop for the future. The KTM brand is my life’s work, and I will fight for it.”
KTM, which has grown from 160 employees and a production volume of 6,000 units in 1992 to a capacity of up to 1,000 motorcycles per day, is now facing significant hurdles. To address these, KTM will initiate a legal restructuring proceeding with self-administration. The application will be submitted on Friday, 29 November, with the goal of concluding the process within 90 days.
Since September 2024, Gottfried Neumeister has joined the Executive Board as Co-CEO. Stefan Pierer: “Gottfried Neumeister has brought impressive experience and a breath of fresh air and has made a significant contribution to addressing the current situation. I am convinced that together we will get the company back on track for success.”
Gottfried Neumeister, Co-CEO of KTM AG: “The enthusiasm of our employees is our most important competitive advantage. Their passion is the reason why KTM is globally synonymous with peak performance. We build our motorcycles reliably and robustly for every race, for every terrain. Now it’s about making the company robust. Robust for the future. So that we can quickly focus again on what we do best: building the coolest motorcycles in the world.”
Pierer and Neumeister emphasized the importance of the employees’ commitment and support during this period. “Together, we have made KTM a success story, and together, we will carry KTM into the future,” they stated.
Details of KTM’s restructuring plans have not yet been made public.
For more, check out this video with Pierer and Neumeister. CN
