Iconic automotive supplier thrown a lifeline after bankruptcy

The German division of automotive seat manufacturer Recaro has been saved from collapse after filing for bankruptcy in July, with an Italian firm now taking over the brand.

Recaro filed for insolvency in Germany earlier this year, citing financial hardship in its European operations. It not only makes aftermarket seats but also supplies directly to carmakers such as Ford, Porsche and BMW.

While its Japanese and North American automotive divisions – as well as its non-automotive ventures – carried on unaffected, the German arm paused operations, creating flow-on effects which halted the production of the Ineos Grenadier which uses Recaro seats.

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However, Italian automotive manufacturing firm Proma Group – which itself makes vehicle seats and structural parts – has now taken ownership of the embattled seat maker, which the company says could result in production restarting as early as January.

The new ownership has also allowed Recaro to retain some of its sales and technology staff in Stuttgart, though it’s not yet known how many people have been affected by its July insolvency filing.

“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 said in a media 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”.

As previously mentioned, the insolvency filing didn’t impact Recaro’s non-German automotive businesses, or its aircraft seat and office chair operations which operate under a different banner.

While Recaro has been saved from the brink of bankruptcy, the fate of fellow German automotive supplier, wheel giant BBS, is still yet to be determined.

Both organisations filed for insolvency 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 business to BBS Japan, which manufactures and sells forged wheels under the BBS Motorsport banner.

The German arm of BBS has experienced five financial crises since 2007, most recently in 2023 when it filed for bankruptcy.

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