2024-11-13 16:30:00
The leading two-wheeler manufacturer KTM is fighting against a slump in orders, high inventories and the cost burden. In the short term, production in Mattighofen, Upper Austria, is to be massively reduced. The group also needs fresh money in the three-digit million range. Pierer Mobility shares are in free fall.
It was a black Wednesday for the two-wheeler manufacturer KTM. The share price of Pierer Mobility, led by the industrialist Stefan Pierer, fell by a third to 8.54 euros within a few hours. In a year-on-year comparison, there is an even more dramatic fall: …
1731516069
#KTM #led #Stefan #Pierer #lay #employees #Mattighofen #months
**Interview with Industry Expert on KTM’s Current Challenges**
**Editor:** Today, we have with us automotive industry expert Maria Klein to discuss the recent issues faced by KTM, particularly the sharp decline in Pierer Mobility’s stock prices and their production cuts. Maria, can you provide us with some insight into what led to this situation?
**Maria Klein:** Certainly. KTM is experiencing a convergence of factors that are impacting its performance, including dwindling orders, high inventory levels, and increased production costs. This combination is forcing the company to scale back operations significantly in Mattighofen.
**Editor:** The stock price drop has been drastic, falling by a third in just a matter of hours. What does this signify for investors and the future of KTM?
**Maria Klein:** It indicates deep concerns among investors about the company’s profitability and operational viability moving forward. A steep decline like this often reflects a loss of confidence in management’s ability to navigate these challenges effectively.
**Editor:** There are reports that KTM needs to secure fresh funding in the three-digit millions range. How critical is this for their survival?
**Maria Klein:** Securing fresh funding is vital for KTM. Without it, the company may struggle to manage its inventory and production expenses, which could worsen their financial instability and potentially lead to larger operational cuts, including layoffs.
**Editor:** Given these challenges, how do you see this impacting employment in the Mattighofen area, where KTM is a major employer?
**Maria Klein:** Production cuts often lead to significant employee layoffs, and in a small community like Mattighofen, that could have ripple effects on the local economy. It’s a tough situation where the company must balance financial survival with its responsibility to its workforce.
**Editor:** Maria, thank you for your insights. As we reflect on KTM’s current predicament, it raises an interesting question: should manufacturers like KTM prioritize innovation and sustainability even in tough times, or focus solely on immediate survival? We invite our readers to share their thoughts on this debate.
