The recent announcement of the insolvency proceedings of Vöcklabrucker Metallgießerei GmbH, a key supplier of parts for KTM, marks a dark turning point for the Austrian group and its employees. This closure, which puts 134 jobs at risk, raises many questions about the fragility of supply chains in the industrial sector and the social consequences of such a decision.
The crisis that shakes the brand KTM AG continues to make waves in its supplier network. The latest victim: Vöcklabrucker Metallgießerei GmbH, an Austrian foundry that filed for insolvency on Friday, jeopardizing 134 Jobs.
According to KSV1870, a representative of the creditors, the foundry was still hoping for a cash injection from KTM AG, especially after having been acquired by KTM Components GmbH last September. However, these expectations were not met, precipitating the insolvency application.
The figures are overwhelming: 3,5 million euros of debt and the inability to pay salaries before the legal deadline of December 15 sealed the fate of the company. Among the jobs at risk are 103 workers, 23 office workers, and 8 interns.
Over-reliance on KTM AGrepresenting 50% turnover, left the foundry vulnerable. With orders down and no prospects for growth from external customers, the forecast for 2025 is pessimistic.
KTM Crisis: " due to lack of financial viability, closure seems inevitable »
Alexander Meinschad, an expert from KSV1870, is unequivocal on motorcysclesports : " due to lack of financial viability, closure seems inevitable"
While KTM AG, KTM F&H, and KTM Components are trying to restructure their businesses, the future of Vöcklabrucker Metallgießerei GmbH seems to be in jeopardy. The crisis highlights the risks of dependence on a single customer and the serious consequences of poor cash management.
As the motorcycle industry faces turbulent times, the likely demise of this foundry is a reminder that the problems of one large company can cause a domino effect with far-reaching economic repercussions.
