Recaro Automotive GmbH has been saved from bankruptcy. The Italian company Proma Group has signed an investment agreement with the German-based seat maker, and the pair have already begun the transition period to assume control of the business. Proma said it would retain several original employees to “ensure a more seamless transition of support to meet customer needs.”
Recaro will have aftermarket seats available again starting next month, which is when it will also transfer OEM production to Italy to begin building the first new seats. The German company filed for bankruptcy at the end of July after facing “significant financial difficulties,” and the company is suspected of having caused the Ineos Grenadier production stoppage a few months ago.
“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,” said Proma Group CEO Luca Pino.
Proma Group specializes in building various automotive components, seat structures, body assemblies, and suspension beams. It employs 5,000 people working in 25 factories across three continents. Recaro’s operations in North America and Japan continue to operate without interruption.
Recaro hasn't been the only industry heavyweight to face disruption in 2024. Wheel-maker BBS and enthusiast shop Hoonigan have also filed for bankruptcy this year. Hopefully both of those firms make it out as easily as our favorite seat-maker.
