Famous for its premium automotive and aviation seats, Recaro faced an uncertain future after filing for bankruptcy in July 2024.
However, Italian automotive components manufacturer Proma Group has stepped in, reviving the German brand with plans to move production to Italy.
Recaro, renowned for its ergonomic seat designs, entered financial difficulty after a private equity acquisition in 2020.
Despite efforts by employees, including waiving pay raises, the company faced collapse earlier this year. Proma Group, a significant player in automotive manufacturing, has now acquired the brand, ensuring its survival and relocating operations to Italy.
Proma’s portfolio includes vehicle body assemblies, chassis systems and seat structures, making Recaro a strategic addition to its business.
Luca Pino, CEO of Proma Group, expressed optimism, saying, “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.”
While production will shift to Italy, Proma plans to retain several Recaro employees in Germany, preserving some of the brand’s historical roots.
Recaro’s global workforce spans countries like Japan, the United States, and Germany, underlining its significance in the automotive and aviation sectors.
Recaro is expected to resume operations by January 2025.
The revival is welcome news for clients such as Ineos, reportedly impacted by the bankruptcy.
Beyond automotive seats, Recaro’s influence extends to the airline industry, where it manufactures commercial aircraft seating.