Recaro is a legendary name in the automotive world. Not only is it known for its sport and racing seats, it’s also a longtime supplier of manufacturers for OE seats. Which is why it’s a surprise when we heard reports from German media.
The report? Recaro has filed for bankruptcy. To be more specific, it’s Recaro Automotive that filed for it. Other aspects of the business, such as the aeronautics division are said to be unaffected.
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To make it clear, it’s the automative division that filed for self-administration by the Esslingen District Court. At the moment, it is yet unclear what the future holds for the company and its 215 workers in its Kircheim unter Teck facility. The trade union IG Metall that represents the workers is requesting for transparency from Recaro regarding the matter.
But how did it all come to this? Recaro’s automotive division was sold off to Raven Acquisitions LLC. It’s an investment corporation based in Detroit, Michigan. Prior to its sale, Recaro Automotive had actually posted $150-M in revenue, so it’s unclear why the company is suddenly filing for bankruptcy.
Given that Recaro is also an OEM supplier to companies such as BMW, Ford, Mazda, and GR models of Toyota, it is possible that these automakers might face supply issues. At the time of writing, there is no official statement from Recaro Automotive.
