Renowned car seat manufacturer Recaro Automotive has unexpectedly filed for bankruptcy, sending shockwaves throughout the industry.
The German company, celebrated for its decades-long supply of sports seats to major car manufacturers like Ford, BMW and Volkswagen, received approval for self-administration from a German court this week.
The news of the bankruptcy filing reportedly came as a surprise to Recaro's employees, according to Autocar. IG Metall, the trade union representing 215 workers at the company's Kircheim unter Teck factory, has voiced concerns and demanded transparency from Recaro's upper management regarding the impact on its members.
Recaro's roots trace back to 1906 when 'master saddler' Wilhelm Reutter began crafting car bodies and interiors. The company gained prominence in 1965 with the launch of its first sports seat, followed by the introduction of the first road-legal full-shell seat in 1967.
While the company has continued to innovate with features like headrest speakers and lightweight composite shells, its recent financial struggles have overshadowed its legacy.
In 2020, Recaro Automotive was acquired by Raven Acquisitions LLC, a US-based private investment firm. At the time, Recaro reported an annual revenue of approximately US$150 million (around NZ$253.8 million) for 2019, and the new ownership aimed to streamline decision-making to better adapt to market demands.
However, the specific financial events that led to the current insolvency remain unclear. The separate Recaro Group that handles child safety seats and aircraft seats are reportedly unaffected by the bankruptcy filing. For now, the future of Recaro Automotive hangs in the balance.
