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After Filing for Insolvency: Recaro Automotive Restructures Under Self-Administration

The seat manufacturer Recaro Automotive filed for insolvency at the Esslingen District Court, which has approved reorganization under self-administration.

Recaro is one of the few suppliers whose own name stands for exceptional quality, which is why Recaro seats are often installed by OEMs with the logo. | Photo: Recaro
Recaro is one of the few suppliers whose own name stands for exceptional quality, which is why Recaro seats are often installed by OEMs with the logo. | Photo: Recaro
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Gregor Soller

The company from Kirchheim unter Teck cites extreme price increases, a negative overall market trend during the Corona years, and the loss of a major contract as the main reasons for its economic difficulties.

Production will be maintained in full

The wages and salaries of the over 200 employees are secured by insolvency money. Production will continue in full to fulfill all existing orders as well as new customer inquiries.

Recaro Automotive is one of the world's leading and best-known manufacturers of car seats. The company produces ergonomic and mostly sporty seats for well-known car brands such as Aston Martin, BMW, Ford, Lamborghini, Mercedes-AMG, and VW. The company also manufactures seats for substitute benches in football stadiums, such as for VfB Stuttgart. Since 2020, the company has been owned by the U.S. investment firm Raven Acquisition LLC. The Recaro brand still belongs to the Stuttgart-based Recaro Group, which is now only a licensor and no longer holds any stake in the now insolvent company.

The insolvency only affects the car seat division

The Recaro Group includes the aircraft seat manufacturer Recaro Aircraft Seating based in Schwäbisch Hall, the gaming chair producer Recaro Gaming based in Stuttgart, and the train seat manufacturer Recaro Rail based in Grodzisk Wielkopolski, Poland. These companies are not affected by the insolvency.

What does this mean?

With Recaro, another supplier is up against the wall. It can only be hoped that it is really due to the concentration of unfavorable circumstances, as the image of the seat manufacturer is among the best in the industry. 

 

Translated automatically from German.
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