Recaro, a renowned name in automotive seating, has filed for bankruptcy in Germany. The surprising news caught the 215 workers at its Kirchheim unter Teck factory off guard, as they were not informed beforehand. Although Recaro also manufactures seats for aircraft and gaming, it is only the automotive division that is insolvent. This division was sold to Johnson Controls in 2011, which later became Adient. Four years ago, Adient sold the company to Raven Acquisitions, a private investment firm based in Detroit. The original Recaro company licenses its name to Recaro Automotive.
The collapse of Recaro Automotive seems to have been a long time coming. Employees reportedly sacrificed their pay for years to support the company’s economic stability. Germany’s IG Metall trade union has called for more transparency from the management and plans to meet with staff representatives in the coming days.
Recaro has a rich history dating back to 1906 when it was known as Stuttgarter Carrosserie und Radfabrik. In 1963, after Porsche acquired the body portion of the business, the company switched its focus to seating and adopted the name Recaro. Since then, Recaro has gained a reputation for manufacturing aftermarket seats for enthusiasts and professional racing applications, as well as providing original equipment for automakers. The Recaro seats in the 2014 Ford Fiesta ST, for example, were highly coveted by car owners and enthusiasts alike.
It remains to be seen how Recaro will navigate the automotive industry after this bankruptcy filing. The car seat division has undergone multiple changes in ownership, ultimately ending up with a private investment firm. This stark contrast to the group’s relative stability under the same leadership in Stuttgart raises questions about the future of this beloved brand. Regardless of what happens next, the fate of an institution cherished by enthusiasts hangs in the balance.
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