Recaro has new investor, resumes operations

On 29 July this year, the long-established car seat manufacturer Recaro had to file for insolvency. In October, the final end of the company, founded in 1963, was sealed. 200 jobs at the company headquarters in Kirchheim unter Teck were to be lost. There were many interested parties, it was said a good six weeks ago, but they all just wanted the brand. Now there is a new investor. 

As Recaro announced this week, the Italian Proma Group has signed an investment agreement with Recaro Automotive GmbH in Germany to take over the business and has begun the transition phase. This means that operations throughout Europe can be resumed and continued from January 2025, according to the letter.

It is not clear from the announcement how many of the 215 employees at the site in Kirchheim, Baden-Württemberg, can be kept on. However, it is unlikely to be too many. "Proma Group will continue operations with several employees from the original sales and technology departments of Recaro Automotive Germany based in the Stuttgart region," it simply states. The popular aftermarket seats should be available again in January. 

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However, OEM production, i.e. the classic supplier business, will be relocated to Italy. The first seats are also due to go into production there in January. Meanwhile, Recaro Automotive's business activities in North America and Japan will continue as usual.

"Our investment in RECARO Automotive will strengthen our ability to deliver premium seating products that utilise the latest innovations in the automotive industry," says Luca Pino, CEO of Proma Group. "The RECARO name is recognised around the world as a benchmark for German industrial technology and Proma Group, a symbol of Italian manufacturing excellence, is looking forward to the future and the added value that will be created thanks to the merger of these two world-class companies in the automotive industry."

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Proma Group is an Italian company with a turnover of €1.1 billion, 5,000 employees and 25 plants on three continents, specialising in the production of automotive components such as seat structures, body assemblies and chassis suspensions.

Recaro generated a turnover of €524 million in 2023. According to media reports, the loss of a major order was responsible for the company's insolvency.

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