The renowned manufacturer of automotive seating is now facing financial difficulties.
Germany’s Esslingen District Court revealed on Monday, as per a post by Automobilwoche, that Recaro Automotive has filed for bankruptcy.
The factory in Kirchheim under Teck, Germany, owned by Recaro Automotive GmbH, reportedly employs 215 workers.
Autocar mentioned that employees were taken by surprise and were not informed of the bankruptcy in advance.
According to Automobilwoche, major labor union IG Metall stated, “We anticipate that all possibilities will be explored to safeguard employment and reach a viable resolution.”
Only the automotive sector of Recaro filed for bankruptcy. The corporation, which is intricate and diversified, also fabricates chairs for aircraft, offices, gaming, and baby seats under different divisions, unaffected by the insolvency filing.
In 2011, Johnson Controls purchased the Recaro Automotive segment. In 2016, Johnson Controls evolved into Adient before eventually selling Recaro Automotive to Raven Acquisitions, LLC, a Detroit-based private investment company in 2020.
The future implications of the insolvency on Recaro Automotive remain unclear. The firm is known for manufacturing top-notch seats for various vehicles, such as the Ford Mustang Dark Horse’s optional high-back seating.
