News recently broke that Recaro Automotive, a distinguished manufacturer known for its top-of-the-line car seats, has officially filed for bankruptcy.
This surprises many, as the German company has a long-standing legacy, tracing back to its origins as Reuterr Carosserie in 1906. The company later shifted its focus to automotive seating in the 1960s, operating under the well-regarded Recaro brand.
Recognised for their advanced bolstering and safety features, Recaro seats have consistently graced high-performance vehicles from renowned manufacturers such as Ford, Volkswagen, and Aston Martin. Furthermore, the company has also made a name for itself in the aftermarket industry, catering to sectors like racing and classic car restoration.
Local car enthusiasts would remember seeing Recaros in their favourite JDM cars, such as the Mitsubishi Evolution 6.5 Tommi Makinen Edition, the Honda Accord Euro R, and even the Suzuki Ignis Sport.
The announcement has understandably caused concern among the 215 union workers at Recaro’s factory in Kircheim unter Teck. The news, disseminated via the company’s internal communication platform, caught many employees off-guard. The bankruptcy proceedings, which commenced in Esslingen District Court, aim to facilitate the continuation of Recaro’s operations under administrative oversight. This period will also thoroughly examine the company’s financial and management practices.
It’s important to emphasise that the bankruptcy filing specifically pertains to Recaro Automotive and does not impact other divisions within the Recaro Group. The unaffected divisions include child safety seats, aircraft seats, gaming chairs, and stadium seats.
This development within Recaro Automotive adds to the recent rise in bankruptcies within the automotive industry. The surge in business-related bankruptcies over the past year reflects the broader economic challenges that may have influenced Recaro’s current position.