KTM Stops Production Due to Lack of Parts
KTM has reportedly hit pause on the production of new motorcycles due to a lack of parts
Just when you thought things were on the up following its approved restructuring plan, KTM has reportedly been hit with another blow as its motorcycle production has been paused just weeks after restarting.
Production restarted just last month after creditors approved its restructuring plan at the end of February. However, the latest roadblock is a lack of parts, which means KTM won’t pick things back up until 27 July.
The halt in production follows the Austrian brand's confirmation that it will no longer handle the distribution of CFMoto bikes in Europe, as it wants to “focus on the realignment of its own brands.”
According to a report from German news outlet 1000PS, KTM has not been able to source critical parts for its bikes. This is as a result of production stopping last year, and no new parts were ordered for around three months as it went through its financial crisis.
KTM was forced to stop production the first time around when the company went into self-administration. Hundreds of employees were also let go, and some racing activity was halted.
The news of KTM pausing its production for a second time reportedly came during a video call on Thursday morning, where the brand’s CEO Gottfried Neumeister told employees: “Due to serious supply chain problems, it is impossible to continue production as planned. Stocks were only sufficient for around 4,200 motorcycles, and now there is a shortage of essential components. Production in Mattighofen will therefore be suspended until 27 July.
KTM’s attempts to restart production last month were met with caution from some suppliers, with some reported to have halted further production for KTM altogether. The report from 1000.PS also states that KTM is confident of finding a solution and that production in Mattighofen could restart at full capacity.
First, KTM’s parent company, Pierer Mobility, faces a financing gap of around €600 million (roughly £5.1m), which needs to be raised by 23 May as part of the agreement with creditors.
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After graduating with a sports journalism degree, Robert joined Crash.net to lead the WorldSBK coverage in 2021, while also providing MotoGP coverage. Fulfilling that role for over three years, Robert was able to put his knowledge about all things racing to the test.
