Published on 30/07/2024
Recaro, a trusted seat supplier for decades, has filed for bankruptcy. Yesterday, Esslingen District Court approved their self-administration. The iconic brand now faces an uncertain future.
“What this means for the 215 employees of Recaro Automotive GmbH in Kirchheim is unclear,” said the union, according to Automobilwoche. “We expect all options to be exhausted in order to secure jobs and find a sustainable solution.”
The works council also expressed its disappointment, as the workforce had helped to keep the company economically stable by waiving and deferring wages. “We are disappointed and feel let down by the management,” said works council chairman Frank Bokowits.
At this time, the bankruptcy filing only applies to Recaro Automotive. That means aircraft, office chairs, gaming chairs, and baby seats are unaffected for now.
Recaro Automotive isn’t the only auto-related brand reporting financial issues right now. Long-established wheel manufacturer BBS has also filed for insolvency proceedings at the Rottweil Local Court. The company had reportedly stopped paying wages for May and June.
BBS has been in trouble several times over the last decade or so, specifically in 2007, 2010, 2020, and 2023. ISH Management Services acquired BBS Automotive GmbH prior to this filing, which declared in a statement: “We will never let down the people who have walked this path with us. We will never give up on the BBS brand, which for us is one of the biggest German global brands. We have a plan and we are determined to implement it.”
According to Auto Motor Sport, an agreement to transfer the brand and distribution rights was completed in June 2024. Here too, the IG Metall trade union was completely surprised and is reportedly puzzled by the management’s behavior.
In addition to its aftermarket offerings, BBS has supplied wheels to numerous automakers over the years including Porsche, BMW, Mercedes-Benz, and others. We’ve contacted Recaro Automotive and BBS for comment; we’ll update this post if we learn anything new.
