Recaro Automotive has announced it has filed for bankruptcy with the Local Court of Esslingen. According to the German seat supplier, its insolvency was a result of significant financial difficulties due to extreme price increases in recent crisis years and the loss of a major contract. Additionally, the effects of legacy products and business operations impacted the company’s development of new product offerings during a regional reduction in vehicle purchase spend.
UPDATE: Recaro Automotive Japan has issued a release shedding more light on the insolvency matter. This post has been updated with the new information.
In an official release, it was stated that the court approved preliminary self-administration on July 29, 2024 and appointed attorney Holger Blümle from the law firm Schultze & Braun as the preliminary custodian of the company. Meanwhile, international consulting firm Baker Tilly is providing legal advice throughout the process.
The company’s employees were informed of the insolvency on Tuesday and will have their wages and salaries secured through insolvency payments. Full production will be maintained during the insolvency proceeding as the company continues to fulfill all existing orders and new customer inquiries.
Autocar reports the company’s employees were unaware of the impending bankruptcy, with the IG Metall trade union, which represents 215 workers at Recaro’s factory in Kircheim unter Teck, Germany, demanding transparency from the company’s management.
It’s important to note that the insolvency proceedings are limited to Recaro Automotive GmbH (Germany) and do not affect any other group companies. These include legal entities such as Recaro Automotive Japan and Recaro Automotive North America, which will continue to develop, manufacture and sell Recaro car seats. The Recaro Group has several business areas besides automotive, including aircraft seating, gaming, child safety seating, rail and special applications.
Recaro’s history dates back to 1906 when master saddler Wilhelm Reutter began designing and building car bodies and interior fittings. The foundation of today’s brand was laid in 1963 when Reutter rebranded (REutter and CAROsserie), with the new company specialising in the manufacture of seats and seat components. The first Recaro sports seat was launched in 1965, which was followed by company’s first road-legal full shell seat in 1967.
Recaro Automotive hasn’t been a part of Recaro Holding, the parent company of Recaro Group, for over 10 years. In fact, Recaro Automotive has changed hands a number of times over recent years, with the company being sold to United States automotive supplier Johnson Controls in 2011.
In 2016, Recaro Automotive evolved to ownership under automotive supplier Adient following the spin-off from Johnson Controls. Later in 2020, the company was sold to Raven Acquisitions, a privately-owned investment firm based in Detroit, Michigan, which continued to licence the Recaro name from Recaro Holding.
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Of course bankrupt. Their most ardent fan, the B40 are going for fake products.
So to bashers, is it mean USA dah bankrup or Jermany dah bankrup? LOL
Have you ever heard a word called EXPORT?
is sokay, we all buy recoro seats from “Ori Thai”
IMO this is a good time for RECARO Holdings to buy back 100% of RECARO Automotive to protect the value of the RECARO Brand.
Then it can go tackle the widespread fake recaros in the market, especially those made in Thailand.
still got sparco and bride…. still got other alternatives.
Will the Recaro kid, the children car seat also affected?
Can get free seats?
Car seats probably too small a business compared to airline seats.i think they are focus on this new line.
because not exclusive anymore.
Just pivot to gamer seats la. You see all those game streamer using motorsport racing seats like posers. Surely big market.
Those playing car seat with original Recaro now going to cry, buy 15k gonna sold for 1.5k soon as company bankrupt, once company bankrupt, the item no longer worth the money, wahahaha kesian those sochai buy original Recaro. There are so many good local seat brand like Sscus, yet ppl play Recaro, really sochai n not worth money. Same goes to BBS rim, bankrupt, now can sell cheap2 ady.