It is the dependence on one particular customer in particular that has pushed German Recaro Automotive towards bankruptcy. The company we start over.
Recaro Automotive cannot pay its bills, the employees have not been paid, and now bankruptcy is lurking.
In front of a German judge, the company with headquarters in Stuttgart has declared insolvent because the money has run out.
But according to Automobilwoche , Recaro intends to use the insolvency to start over. Now, according to the management, more investment must be made both regionally and globally. However, what that announcement means exactly is unclear.
The German media writes that Recaro's parent company has promised to support the restructuring of the company, and that Recaro expects to "soon be financially back on its feet".
READ ALSO: Several car brands offer employees money to quit
It is said to be a dependence on the British car brand Ineos Automotive that has given Recaro the final push against bankruptcy. Ineos is fighting for survival itself and has just postponed the launch of a new model.
If there is no rescue, the 215 employees at the factory will suddenly be out of a job. In that case, they can register with the local employment service. This is probably where their colleagues from BBS are also on their way.
The German part of the rim manufacturer has now declared bankruptcy for the fifth time in the company's history. And that just months after the chassis manufacturer KW sold the rim company to some Turks.
After the takeover of BBS, however, no salary has been paid. And according to sources quoted by the German media T-Online, the Turkish owners are nowhere to be found at the factory. The wages for the employees have not been paid in both May and June. It is not known whether any wages have fallen in July.
However, life on the brink of bankruptcy has already turned into actual bankruptcy for several companies in and around the automotive industry this year.
Recently, a huge retailer of electric cars, for example, went bankrupt with a debt of one million. However, entire car brands have also turned around. Some even for the second time. Read more about it here .
Read more exciting news from and about the world of cars right here!
