- Famous seatmaker Recaro filed for bankruptcy in July.
- Now, a new company, Proma Group is taking Recaro over.
- Production will move to Italy.
Bring your seatbacks to an upright position, as world-famous seat manufacturer Recaro was just saved. Proma Group just made a huge investment in the German-based company and will move operations to Italy. The move affects workers and brands across the globe.
Things looked really bleak for Recaro in July. A private equity firm bought the brand in 2020 and by July of this year, it was filing for bankruptcy. That happened after workers waived pay raises and benefits in the interest of keeping the brand afloat. Despite that, it appeared as though it was doomed. Today, things took a drastic turn for the better.
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Proma Group out of Italy made a huge investment to keep the company going. It’s already begun the process of transferring production to Italy but will continue to employ several workers in Germany. Proma already makes several components for the automotive sector so buying a storied brand like Recaro makes sense.
Among its current product portfolio are vehicle body assemblies, chassis systems, crash management systems, and car seat structures. “Our investment in Recaro Automotive will strengthen our ability to deliver a premium seating product while embracing the most cutting-edge innovations in the automotive sector,” said Proma Group CEO Luca Pino.
“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,” he continued.
Recaro employs workers around the world, including Japan, Germany, and the USA. According to Proma, it’ll be producing parts again as soon as January 2025. That’s hugely good news for brands like Ineos who allegedly fell behind on production when Recaro filed for bankruptcy earlier this year. Notably, Recaro is also a huge player in the airline industry where it builds several different seat types for various commercial aircraft.
