Recaro Automotive enters administration

5 August 2024  

Premium seat manufacturer Recaro Automotive has entered administration, citing significant financial difficulties arising from “extreme price increases in recent crisis years” and the loss of an undisclosed major contract.

The Stuttgart-headquartered company said it had filed for insolvency and a court in Germany approved preliminary self-administration on July 29.

However, the firm said it planned to maintain full production during the insolvency proceedings to continue fulfilling all existing orders and new customer inquiries.

Shareholders have emphasised the importance of the organisation in the region for the group and have pledged their support for restructuring efforts, the company said.

Recaro Automotive’s OEM partnerships include Mercedes-Benz and Aston Martin.

The company said: “By working together as a team with our employees, suppliers, and customers through the possibility of an insolvency plan under German law, expect to stand on solid ground again in a timely manner.”

The insolvency proceedings are limited to Recaro Automotive GmbH and do not affect any other group companies. 

Holger Blümle from law firm Schultze & Braun has been appointed as the preliminary custodian, while consulting firm Baker Tilly is providing legal advice.