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sees creditors receiving just 30 % of what they are owed. In a market with fragile supplier relationships, this decision raised eyebrows— and concerns with many suppliers voicing concerns that contracts could be dishonoured as well as premium parts being dropped for cheaper versions, ultimately ruining the reputation of KTM machines beyond what is already considered now to be something to avoid.
CHAPTER THREE: HALTED LINES, SILENCED FACTORIES
To stem cash outflow, KTM announced a temporary production freeze at its flagship factory in Mattighofen. Over 1,000 employees were affected, many placed on Kurzarbeit( short-time work) arrangements subsidised by the Austrian government.
The mood among workers has shifted from pride to uncertainty.
“ We were building the best off-road bikes in the world,” said a technician who has worked at the facility for over a decade.“ Now we don’ t know if we’ ll be building anything next month.”
Between January 2024 and March 2025, KTM downsized its global workforce by 1,850 employees, with further cuts expected, particularly following its divestment from MV Agusta.
CHAPTER FOUR: A RACING REBOOT AMIDST THE STORM
Ironically, as KTM wrestled with its financial survival, it continued to make bold moves in the racing world—
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