The German division of the car seat manufacturer Recaro has been saved from collapse following the bankruptcy filing in July, with an Italian company now taking over the brand.
Recaro filed for bankruptcy in Germany earlier this year, citing financial problems in its European operations. It not only makes aftermarket seats, but also supplies directly to car manufacturers such as Ford, Porsche and BMW.
While the Japanese and North American automotive divisions – as well as the non-automotive ventures – continued unaffected, the German arm halted operations, creating flow-on effects that halted production of the Ineos Grenadier, which uses Recaro seats.
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However, Italian car manufacturer Proma Group – which makes its own car seats and structural parts – has now taken ownership of the embattled seat manufacturer, which the company says could lead to production resuming as early as January.
The new ownership also allowed Recaro to retain some of its sales and technology staff in Stuttgart, although it is not yet known how many people were affected by the July bankruptcy filing.
“Our investment in Recaro Automotive will strengthen our ability to deliver a premium seating product, while at the same time embracing the most cutting-edge innovations in the automotive sector,” Luca Pino, CEO of Proma Group, said in a media statement.
“The Recaro name is known around the world as a benchmark for German industrial technology, and Proma Group, a symbol of Italian manufacturing excellence, is excited about the future and the quality that will be reflected in the automotive market thanks to the union of two first-class companies”.
As previously mentioned, the bankruptcy filing did not affect Recaro’s non-German car businesses, nor did it affect its aircraft seat and office chair business, which operate under a different flag.
Although Recaro has been brought back from the brink of bankruptcy, the fate of German car supplier wheel giant BBS is still to be determined.
Both organizations filed for bankruptcy in the same week, and like Recaro, only BBS’s German division was affected.
BBS Autotechnik, acquired by suspension specialist KW Automotive in 2021, is a separate company of BBS Japan, which produces and sells forged wheels under the BBS Motorsport banner.
The German arm of BBS has experienced five financial crises since 2007, the most recent in 2023, when it filed for bankruptcy.
MORE: Recaro and BBS safe despite financial problems in Germany
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