How Recaro was rescued from financial collapse
The iconic German seatmaker found a lifeline with Italian investment as production moves forward.
Recaro Automotive, the legendary seat manufacturer known for its premium products in performance and luxury vehicles, has been rescued from financial ruin.
After filing for bankruptcy in July, the German company has found a lifeline in Proma Group, an Italian parts supplier specializing in automotive components. The deal secures Recaro’s operations and paves the way for a relaunch in January 2025.
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A turnaround effort begins
Proma Group’s investment marks a turning point for Recaro. The agreement ensures that production will resume next year, with OEM seat manufacturing moving from Germany to Italy. Aftermarket seat availability is also expected to restart in January, a promising sign for customers and automakers reliant on Recaro’s reputation for quality.
To maintain continuity, Proma will retain several key Recaro employees, particularly in the sales and technology departments, who will remain based in Stuttgart, Germany. This approach aims to preserve Recaro’s expertise and customer relationships during the transition.
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Global operations remain steady
While major production shifts are planned for Europe, Recaro’s operations in North America and Japan will continue uninterrupted, part of Proma Group’s effort to create a smooth transition for Recaro as the company undergoes the switch in ownership.
“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,” said Proma Group CEO Luca Pino. “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.”
Proma, which employs over 5,000 people across 25 factories worldwide, manufactures various automotive components, including seat structures and body assemblies.
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Recovering from a rocky year
Recaro’s financial struggles made headlines earlier this year when the company was linked to production delays for Ineos Automotive’s Grenadier SUV and Quartermaster pickup. Supply issues with Recaro seats temporarily halted manufacturing, underscoring the challenges the seatmaker faced in fulfilling orders. Production at Ineos is expected to resume alongside Recaro’s relaunch.
This tumultuous period isn’t unique to Recaro. Other automotive icons like BBS Wheels and Hoonigan have also faced financial difficulties in 2024, reflecting broader instability within the industry.
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Final thoughts
Proma’s investment secures the future of Recaro, one of the world’s oldest seat makers. As the brand prepares for its European relaunch, enthusiasts and automakers alike can anticipate the return of Recaro’s seats, which have become an iconic part of any performance-oriented car.
