KTM resumes bike production after financial freeze

KTM has restarted production at its main factory in Mattighofen, Austria, following a months-long shutdown triggered by serious financial headwinds. From July 28th, the company is returning to a full five-day work week, kicking things off with its Offroad range and LC4-platform models.

Now, after several months of belt-tightening and logistical reshuffling, the assembly lines are moving again. KTM says it will prioritise production of its Off-road lineup first, which encompasses motocross and enduro models. Those will be followed by KTM’s LC4 range, meaning the KTM 690 Enduro R and 690 SMC R are also back on the menu.

CEO Gottfried Neumeister thanked employees for their "dedication, flexibility, and team spirit" during what he described as one of the toughest periods in the company’s recent history.

“Restarting production gives us the stability we need to fully refocus on quality, customer proximity, and further development,” he said.

KTM’s production line coming back to life isn’t just a routine restart, as it marks the end of a particularly rough chapter for KTM AG - the parent company behind KTM, Husqvarna and GASGAS. Production ground to a halt amid what was described internally as a "massive overstock situation" and a "recalibration" of sales expectations. In short, the company built more bikes than the market could absorb, particularly in North America, and the warehouses started filling up faster than dealers could shift stock.

The fallout was swift, and production was paused along with the decision to temporarily close its Mattighofen plant. That rattled the global motorcycle industry and made for a troubling time for parts suppliers and partners. It also left many riders wondering when new models would roll off the line again.

While KTM hasn’t gone into full detail about its financial restructuring, it's understood that the company (and its owner, Pierer Mobility AG) faced a steep decline in demand after a pandemic-fuelled boom in bike sales cooled rapidly. The global cost-of-living crisis, combined with high interest rates and cautious consumer spending, didn’t help either. With dealers stuck holding unsold stock and cash flow tightening, the decision to hit pause on production was seen as a necessary evil to rebalance the books.

There’s still a way to go, but KTM’s return to full-time manufacturing will come as welcome news to riders, dealers and suppliers worldwide who’ve been left in limbo since the spring. Whether the ramp-up continues smoothly and whether demand returns to pre-crisis levels remains to be seen.

For now, if you’ve been waiting for that fresh-from-the-factory 690 SMC R or planning to hit the trails on a 2025 EXC, KTM says the wait is almost over.

Find the latest motorcycle news on Visordown.com