The agreed payment to creditors saved KTM AG, allowing it to maintain its operations into the future and seek a return to financial prosperity after recent difficulties.
Bajaj will become the majority shareholder, but Gottfried Neumeister, CEO of KTM AG, told the website GPOne.com that the brand will not leave Austria:
– We were given the opportunity to continue KTM's story. The existing sites, especially our main factories in Mattighofen and Munderfing, will remain the foundation of our future success. We will continue to be an important employer for the entire region.
Manufacturing in a country like India can be significantly cheaper, but in the face of any potential concerns about KTM's future in Austria, Neumeister reinforced the assurance: ‘Bajaj will stick with Austria. The Indians wouldn't have paid 800 million euros if they were planning to relocate production’.
According to what the German told the Salzburger Nachrichten, labour costs account for around six to eight percent of total production expenses – explaining that the source of materials carries a considerably more significant weight. In fact, since the outbreak of the war in Ukraine in 2022, KTM has already been sourcing from Asia.
