Recaro Automotive Germany Files For Bankruptcy

Recaro Automotive Germany, well-known for its vehicle seats and a long-time supplier to several automakers, filed for Chapter 11 on July 29. It has been reported that the submission was unknown and came as a surprise to the company's 1,000 odd employees.

Recaro was first established in 1906 as Reuterr Carosserie, a coachbuilder of automobiles that produced car bodywork for Volkswagen and Porsche. In the 1960s, the company began concentrating on seats, and in 1963, it changed its name to Recaro.

Recaro seats became the standard OEM fitment on high-performance models for automakers like Mitsubishi, Nissan, Volkswagen, and more. This stems from their reputation for providing superior bolstering and safety features.

Recaro also produces aftermarket seats for the racing and tuning markets. It includes FIA-approved racing seats right up to classic seats such as the LX wrapped in chequered fabric similar to what came fitted standard in the Proton Satria GTi and Putra.

The bankruptcy news shocked many, especially the 215 IG Metall Trade Union workers at the factory near Stuttgart, Germany. A representative from IG Metall, Alessandro Lieb was quoted saying, "The workforce and the union were not informed about the step and found out about it via the intranet."

Recaro Automotive Germany's operations can go forward with an administrator overseeing the company's finances and management style following the bankruptcy filing in Esslingen District Court. Previously, another historic German automotive brand, BBS Wheels, had also filed for bankruptcy under similar circumstances.

It is important to note, though, that the Recaro Group - which produces and licences gaming chairs, stadium seating, airline seats, and child safety seats - is not included in the bankruptcy petition. After being sold in 2011, Detroit-based private investment firm Raven Acquisitions is the current owner of Recaro Automotive Germany.

Additionally, according to Autovogue, the official Recaro distributor in Malaysia, this bankruptcy filing does not involve Recaro Automotive Japan and USA, which are separate entities from Recaro Automotive Germany.