German performance seat supplier Recaro Automotive has filed for bankruptcy. A favorite among enthusiasts and a former GM supplier, the filing does not affect the company’s gaming or airplane seating business, although the future of Recaro in the automotive sphere remains unclear. Seating firm Adient sold Recaro Automotive four years ago to Raven Acquisitions, a private investment firm.
Reports indicate that Recaro Automotive employees were not informed beforehand that the company would be filing for bankruptcy. According to the German automotive news outlet Auto Bild, German trade union IG Metall expressed surprise at the announcement, and is calling for more transparency from company management. Workforce representatives plan to soon meet in order to outline next steps for employees. It’s also reported that some employees waived pay for several years in order to provide the company with greater economic stability.
It’s estimated that roughly 215 workers at the company’s factory in Kircheim unter Teck, Germany will be impacted. In addition to automotive seats, the company also produces aircraft seats, gaming chairs, and child seats, the latter of which are unaffected by the recent bankruptcy filing.
The company previously served as a seat supplier for GM, with the sportier models of the last-generation Alpha-based vehicles (Chevy Camaro, Cadillac ATS, Cadillac CTS) offering Recaro seats as optional equipment. The 2024 Chevy Camaro was the last GM model to offer the company’s seats, and now, it appears as though they may never again be offered as a GM factory option.
Recaro was founded in 1906 as Stuttgarter Carosserie und Radfabrik (Stuttgart Body and Wheel), with a focus on vehicle body production for a variety of Volkswagen and Porsche models. The company later adopted the Recaro name in 1963, refocusing its efforts towards automotive seating after Porsche acquired the body business, launching in 1965 with sport seats for the Porsche 911. The company has since grown to become a well-known seat provider in the aftermarket, racing, and restomod communities.
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Comments
Someone should buy the company.
How does a company with such steady biz go out of biz?
Private Equity! Likely couldn’t afford to fund with higher interest rates, took out what they could, and bankruptcy. Someone will likely pick up the pieces in court settlements. Question will then be: “What does the licensing from Recaro look like for any potential new owner, as the Recaro name is licensed for the Auto Seat manufacturing from the parent company”.
Also, it appears that the president was at Johnson Controls when they owned the Recaro Auto Seating when it was split off. So he has been involved from Johnson to Adient and then to Raven Acquisitions. Maybe some new management would have been an idea somewhere along 3 owners?
Vulture capitalists at work!
Take and destroy, workers are just collateral damage !
Mismanagement.
Vulture capitalism, aka corporate greed. Not a new idea, it’s been in practice at least since the days of Carl Icahn. Buy up a going (profitable) concern, strip as much cash out as possible, overleverage with debt, declare bankruptcy, and sell off any remaining assets. Rinse and repeat. The raiders get richer and the workers get screwed.
Your friendly Dealer’s service parts inventory just tripled in price….
not that I needed my 2023 zl1-1le to be an even bigger target for thieves and yet here it is….wonderful!
Private equity ownership 4 years ago says it all. Yes, equity firms often do well in turning around underperforming businesses, but all too often they simply bleed a company dry and sell off the remnants. There is no bond with the product at all by the owners.
Just like a parts car.
“Strip and Flip”.
You hit the nail on the head HANEY, LOL