The German seat and cabin manufacturer Recaro Automotive now avoids the bankruptcy that was otherwise planned for July. Rescue is an investment from Italy.
The German manufacturer of car seats, Recaro, has been saved from bankruptcy by an investment from the Italian company Proma Group.
Recaro, which employs 215 people in its German branch in Kirchheim unter Teck, has been in financial difficulties, and in July the management threw in the towel with a bankruptcy petition.
With Proma Group's entry as an investor, production is expected to be able to resume at the beginning of next year.
Proma Group has signed an investment agreement giving them control of Recaro Automotive. The agreement includes a transition period during which several employees from Recaro's existing sales and technology departments will remain open.
That's what Motor1 writes.
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The German headquarters, which also includes a manufacturing facility, will continue to play a role in the company's future.
Proma Group is a significant player in the production of car seats. The group operates 26 factories on three continents.
As part of the agreement with the Germans, they plan. that parts of Recaro's production are being moved to Proma's factories in Italy. This move is part of a wider strategy to ensure more efficient operations and reduce costs in the company.
A spokesperson from Proma Group states that they see great potential in Recaro Automotive and aim to get the company back on track.
– We have strong faith in Recaro's future and in our ability to utilize synergy effects between the two companies," says the spokesperson.
Recaro has for many years been an important supplier of car seats, particularly in performance-oriented applications.
However, the economic challenges have meant that the company has had to reorganize its operations and is now dependent on Proma Group's support in order to survive. How much the Italians have put into the German part of Recaro is yet to be seen.
While Recaro seems to have saved itself through the crisis, things immediately look worse for BBS. The rim manufacturer faces the company's fifth bankruptcy since its founding in 1970. Read more about it here .
