RECARO’s future is no longer in jeopardy as Italian supplier group, Proma, officially announced its investment into and acquisition of the company, essentially digging the ailing firm out of bankruptcy. Not too long ago in July of this year, RECARO Automotive GmbH filed for insolvency protection in Germany, or what is the equivalent to Chapter 11 here in the United States.
Known for making seats in race cars and high-end and luxury sports cars such as Aston Martins, BMW M models, Porsches, Mercedes-AMG cars, and countless more, RECARO went under due to a loss of a crucial supplier contract and a tough financial year. But now, the company is getting back on its feet thanks to the Proma Group, a prominent supplier and manufacturer of car bodies and chassis and its related componentry, car seats, vehicle collision and crash management systems, and other important electronics that new vehicles rely on today.
Proma Group Plans To Relaunch RECARO In 2025
In its official press release, the Proma Group announced its investment into the company that will allow RECARO to continue operations and be fully back in business by January 2025. The relaunch of the brand will spread across all the company’s branches throughout Europe, while retaining its main headquarters in Stuttgart, Germany. Around the same time, RECARO will be able to resume offering aftermarket seat options for customers, with production relocating to new facilities in Italy.
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.
– Luca Pino, CEO of Proma Group, said in the official statement.
RECARO’s regional operations in North America and Japan will also continue with business as usual and remain unaffected by the transition in ownership.
The RECARO name is renowned throughout the world as a benchmark of German industrial technology, and Proma Group, a symbol of Italian manufacturing excellence, is excited about the future and the quality that will be expressed in the automotive market thanks to the union of two first-class companies.
The seat manufacturer came under the spotlight after filing for bankruptcy protection in Germany, affecting a large handful of automakers globally, since they depend heavily on the supplier’s seats for many of their vehicles. One of them was INEOS, who as a smaller automaker, can’t typically afford to suffer from such supplier issues. A report a few months ago indicated that INEOS had to suspend production and delay sales, reportedly as a result of RECARO’s bankruptcy filing.
Prior to the filing, a Detroit-based private investment firm called Raven Acquisitions purchased RECARO in January 2020. It was under their ownership that the world’s oldest seat manufacturer went under.
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