Recaro Germany saved from bankruptcy
Proma Group saves Recaro Germany from bankruptcy
After what has happened, it’s been one exhilarating roller coaster ride for Recaro Automotive Germany. The ride started when a private equity firm bought the brand in 2020 and by July of this year, it was already filing for bankruptcy. Despite making drastic moves to keep the brand afloat, it appeared as if all was lost. But like an answered prayer from the heavens, things took a turn for the better.
Italian automotive component manufacturing company Proma Group has signed an investment agreement with Recaro Automotive GmbH in Germany to take over the business and has begun the transition period. This investment will allow for operations to continue and relaunch across Europe in January 2025.
To make the transition as seamless as possible and to meet the needs of the customers, Proma Group will retain several employees from the original Sales and Technology departments at Recaro Automotive Germany which will be based in the Stuttgart region. In January, aftermarket seats will be available on the market and OEM production will be transferred to Italy with the first seats entering production.
“Our investment in Recaro Automotive Germany will strengthen our ability to deliver a premium seating product, while embracing the most cutting-edge innovations in the automotive sector,” said Luca Pino, CEO Proma Group. “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 Group is an Italian company with a turnover of EUR 1.1 billion, specializing in the production of automotive components, seat structures, body assemblies, and suspension beams. With 25 plants located on three continents, 5,000 employees, and over 30 international patents, Proma Group combines its extensive experience and commitment to innovation with highly technological solutions and materials, which contribute to reducing the carbon emissions of vehicles. Its “proximity logistics” approach places the plants and distribution centers close to customers, ensuring reliability, cost efficiency, and fast delivery.
As before, Recaro Germany is separate from Recaro Japan and North America which are continuing to function as usual. Providing the same high standard of products and services that their clients have continued to rely on.
