KTM AG filed for bankruptcy as announced on November 29, 2024 – now the state of Upper Austria has also shown its interest in helping Europe’s largest motorcycle manufacturer.
Pierer Mobility subsidiary KTM AG filed for bankruptcy proceedings under private administration in Upper Austria last Friday. Known for a few days: an amount between three digits is required. It was also recently announced that 300 more jobs will be cut.
The state of Upper Austria has signaled its intention to support workers at Europe’s largest motorcycle manufacturer. According to state leader Thomas Stelzer (ÖVP), liability is impossible for legal reasons. “We really want to help as politicians and support the region. We are doing everything we can to save the plant and jobs,” said Stelzer in his statement to the Austrian Press Agency (APA). The state governor also made it clear: “However, the law of EU state aid and insolvency law currently excludes liability.”
However: The state “is close when it comes to supporting affected workers – with the employment service and social partners,” explained Stelzer and emphasized: “It is important that things continue. Upper Austria is still a good business location, even if the situation It’s difficult. But we have the strength to get out of there and prevent a downward spiral.”
Considering the state of the economy, he hopes that there will soon be a federal government capable of acting after the National Assembly elections on September 29, 2024, and called for performance incentives and quick procedures to support the economy.
The parties accuse each other of making the region more expensive with the 2040 climate goals. Austrian Economy Minister Martin Kocher also spoke on Thursday. He is demanding answers from KTM about the background of the financial situation and how the restructuring cases might arise. In an interview he explained: “There is a need to have a clear analysis of the company, ‘What happened there?’, and a future perspective in this restructuring process that is now pending.”
On 29 November, the Employment Service (AMS) announced that the existence of every KTM employee was found to be around 3,700 people at KTM AG were affected. There are also indirect distributors in the Innviertel. The rule of thumb is: one worker in the industry means two more jobs in the region. Head of AMS Upper Austria, Iris Schmidt, said: “AMS is preparing. Everyone’s subsistence needs should be paid on time when needed. The region is heavily influenced by industry. Now we have to wait and see if there will be more bankruptcies or changes in size in that area.
