KTM to interrupt production due to COVID-19
The Pierer Mobility Group, including KTM, Husqvarna and GasGas, Europe’s largest motorcycle manufacturer, will be interrupting operation and production late this month through until April 10. Due to the impact of the coronavirus on northern Italy, and the possibility of supply chain interruptions due to effected outside suppliers, staff will be sent on a two week company vacation from March 30 to April 10
The northern Italy region includes many suppliers to the group, and is heavily effected by coronavirus, with the move aiming to ensure no uncontrolled business interruption, with worldwide distribution and supply of spare parts not to be effected.
The group has also indicated that the financial guidances in place for 2020 have been cancelled, due to the unforeseen impact of the coronavirus, but has stated the availability of all models for the upcoming start of the season in the worldwide dealer network is assured.
The move marks a proactive step to managing the impact of coronavirus, as its reach and spread continue to effect nations around the world.
Official Statement:
PIERER Mobility Group reacts to the current exceptional situation. From March 30, Europe’s largest motorcycle manufacturer in Mattighofen will respond to the current situation with an interruption in operation and production until April 10.
This measure is triggered by a possible impending interruption in the supply chain from northern Italy. Many suppliers are located in this region, which is badly affected by the Corona virus. With this measure, KTM avoids a possible uncontrolled business interruption and anticipates parts of the company vacation in the summer to stabilize the supply chain in the long term. Not affected by these measurements is the worldwide distribution and the supply of spareparts.
The availability of all models is guaranteed for the upcoming start of the season in the worldwide dealer network.
The current development of the Corona crisis requires a daily reassessment of the situation. The published guidance for the financial year 2020 is thus canceled.
Wels, Mattighofen (pta/12.03.2020/17:35)
- Two-week company vacation from March 30 to April 10
- Availability of the model range ensured in the worldwide dealer network
- Outlook (Guidance) for 2020 cancelled
Public disclosure of inside information according to article 17 MAR
Source: MCNews.com.au