Car seat manufacturer Recaro files for insolvency

Recaro Automotive is well known for the creation and distribution of car seats for a variety of companies and brands including Ford, BMW, Mazda, Honda and the Volkswagen Group. The manufacturer has just filed for bankruptcy in Germany shortly after announcing it was entering administration. 

Despite existing for over 60 years, a District Court in Germany ordered Recaro to enter into self-administration. This decision was announced to its employees, as well as local politicians and union leaders, on July 30th.

Recaro also supplies seating for aircrafts, as well as creating gaming chairs through its subsidiaries Recaro Aircraft Seating and Recaro Gaming, respectively. These are understood to not be impacted by the bankruptcy. 

The company has since released a statement citing the ‘significant financial difficulties due to extreme price increases in recent crisis years and the loss of a major contract’ as the main cause of its bankruptcy.

Recaro plans to work throughout the insolvency proceedings ‘by working together as a team with our employees, suppliers, and customers’, and ‘expect to stand on solid ground again in a timely manner.’ It aims to ‘continue fulfilling all existing orders and new customer enquiries.’