Automotive seat manufacturer Recaro Automotive has had ownership taken over by Italian automotive manufacturing firm Proma Group, reported Car Expert. Recaro Automotive had filed for bankruptcy earlier this year, which resulted from severe financial difficulties faced due to extreme price increases and the loss of a major contract.
Proma Group, which itself manufactures car seats and structural parts, says seat production from Recaro Automotive could resume as early as January, according to the report. Proma’s ownership of Recaro Automotive allowed the latter to retain some of its sales and technology personnel in Stuttgart, Germany, it added.
“Our investment in Recaro Automotive will strengthen our ability to deliver a premium seating product, while embracing the most cutting-edge innovations in the automotive sector,” Proma Group CEO Luca Pino was quoted as saying in a statement.
“The Recaro name is renowned throughout the world as a benchmark of German industrial technology, and Proma Group, a symbol of Italian manufacturing excellence, is excited about the future and the quality that will be expressed in the automotive market thanks to the union of two first-class companies,” the statement continued.
The insolvency proceeding involving Recaro Automotive earlier this year did not affect other companies within the Recaro Group, which include business areas such as aircraft seating, gaming, child safety seating, rail and special applications.
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