A few months back we reported on Recaro Automotive’s financial woes.
Now it would seem that Italian automotive parts manufacturer, the Proma Group, is a white knight, saving the firm from going under.
It has agreed to invest an undisclosed sum in car seat maker Recaro Automotive, rescuing it from bankruptcy.
Recaro went into self-administration in July, placing its future in doubt. And no doubt causing problems for certain car makers as well.
It was widely reported that Ineos Automotive had to stop production of its Grenadier 4×4 because of a parts shortage. And apparently its seat supplier was Recaro (as below).
Now though, things look to have firmed up for the seat maker, the investment sufficient that it can restart seat production early in the new year.
That happens to coincide with when Ineos is resuming Grenadier output. Coincidence? Unlikely.
One apparent proviso is that Recaro moves its seat production facility from Germany to a site in Italy. That means the viability of the Recaro Automotive factory in Kirchheim unter Teck is in serious doubt.
The Italian firm said that some staff from the sales and technology departments of Recaro Automotive will be retained.
Proma CEO Luca Pino commented: “Our investment in Recaro Automotive will strengthen our ability to deliver a premium seating product…
“The Recaro name is renowned throughout the world as a benchmark of German industrial technology. 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.”
Recaro Automotive’s other operations in the US and Japan are unaffected by the administration proceedings.
Moreover, Recaro aircraft seat, gaming seat and child seat businesses were immune from Recaro Automotive’s problems. Those divisions are owned by the original Recaro company, Recaro Holding.
