Recaro Automotive Seating Files for Bankruptcy in Germany UPDATED

by Chris Teague

Published: July 31st, 2024

recaro automotive seating files for bankruptcy in germany

Recaro, known for making seats for automakers, racing teams, and others, is entering bankruptcy in Germany. On July 29, the company was placed into administration to oversee its operations and finances.

While we don’t know what led to the decision, it’s important to note that the bankruptcy only impacts the Recaro Automotive Seating Company, not Recaro Holdings, which makes gaming chairs, airline seats, and more.

The company hasn’t stated how the action would impact its German employees, nor is there any hint of what could be next for Recaro seats. Germany’s Auto Bild publication stated that Recaro’s employees had “contributed to the economic stabilization of the company by waiving and postponing wages” for some time, hinting that the bankruptcy wasn’t a recent development. It has had several owners over the last decade-plus, so it’s conceivable it could change hands again, but a bankrupt company isn’t the most attractive to outside investors.

If Recaro folds, which we can all agree would be the worst-case scenario, it could change the way OEMs build new vehicles. The company’s seats are in everything from Ford Mustangs to Cadillacs to classic German sports cars, so it would be a significant bummer to lose its products.

UPDATE: Recaro PR sent this statement after publication: "Please note the insolvency does not affect RECARO Automotive North America, Inc. RECARO Automotive Japan Co. Ltd, RECARO Automotive Composites Engineering, LLC, RECARO Automotive Components (Shenzhen) CO., LTD, RECARO Automotive (Shenzhen) Co. Ltd., or RECARO Automotive’s commercial vehicle units."

[Images: Recaro Automotive Seating]

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#recaroseats #Bankruptcy #Recaro #Suppliers #Aftermarket

Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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4 of 9 comments

TT on Jul 31, 2024
The company that makes such seats may have driven to failure, but the expertise of the people who did the work to design and build those seats are still functional, and in likely need of jobs and positions where they can offer their services. Companies that has been built on desire and passion to be good, great, and the best at something rightfully became nationally and world known.Then, equity/money firms decided that they could figure out a way to suck and squeeze profits out of those hard made and hard won brands, with no care, no passion, no desire other than to maximize profits, and sell off what they can't manipulate for greater profits. Unbridled greed eats itself, and leaves nothing for those who actually do the work that creates wealth.

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- El scotto on Jul 31, 2024
  I take it you don't shop at Wal-Mart?
  
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- Jeff S on Aug 01, 2024
  That has been that way starting 50 years ago. I remember Gant shirts which was famous for their oxford cloth shirts that would wear like iron being bought out by Consolidated Foods then Van Heusen with their quality steadily declining and eventually losing market share until they got bought out by a Swedish company. Also Sunbeam which make excellent small appliances going through a series of take overs and each one a decline in quality. Hoover vacuums which at one time was an industry leader went through a series of takeovers and is now Chinese.
  
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IBx1 on Jul 31, 2024
I smell venture capital How about making it employee-owned

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