Iconic automotive seat manufacturer Recaro Automotive has filed for insolvency, leaving employees and union representatives bewildered.
The news, which surfaced on 29 July, came as a shock to both employees and the IG Metall trade union, according to Automobilwoche. The Esslingen District Court in Germany received the bankruptcy filing.
"The implications for the 215 employees of Recaro Automotive GmbH in Kirchheim remain unclear," the union stated, as reported by Automobilwoche. "We expect that all options will be exhausted to safeguard jobs and secure a sustainable solution."
The works council also expressed their disappointment, highlighting the workforce's efforts to keep the company financially stable through wage waivers and deferrals. "We are disappointed and feel let down by the management," remarked works council chairman Frank Bokowits.
This bankruptcy filing only impacts Recaro Automotive, meaning their aircraft, office, gaming, and baby seats are unaffected for now.
Recaro isn't the only auto-related brand experiencing financial difficulties. Long-standing wheel manufacturer BBS also filed for insolvency proceedings at the Rottweil Local Court. Reports suggest that the company ceased paying wages for May and June.
BBS has faced financial challenges in recent years, notably in 2007, 2010, 2020, and now 2023. ISH Management Services acquired BBS Automotive GmbH prior to this filing, releasing a statement: "We will never let down the people who have walked this path with us. We will never give up on the BBS brand, which for us is one of the biggest German global brands. We have a plan and we are determined to implement it."
According to Auto Motor Sport, an agreement was finalised in June 2024 to transfer the brand and distribution rights. This development also took IG Metall by surprise, with the union reportedly baffled by the management's actions.
Beyond its aftermarket offerings, BBS has supplied wheels to numerous car manufacturers over the years, including Porsche, BMW, Mercedes-Benz, and others.
Motor1.com has contacted both Recaro Automotive and BBS for comment and will update this story with any new developments.
