Recaro shock: Renowned car seat maker files for bankruptcy
The automotive industry is navigating a challenging period, impacting even car seat manufacturers. Recaro has unexpectedly filed for bankruptcy.
10:21 AM EDT, July 31, 2024
According to the "Automobilwoche" service, Recaro's decision surprised both employees and the IG Metall labor unions. The court in Esslingen published information about the bankruptcy filing on July 29.
"It is unknown what this means for 215 employees of Recaro Automotive GmbH in Kircheim. We expect that all options aimed at securing jobs and finding a sustainable solution will be exhausted," said IG Metall union representatives, as quoted by "Automobilwoche."
The works council also expressed their disappointment, especially since employees helped maintain the company's economic stability by agreeing to defer their salary payments.
"We feel let down by the management," said Frank Bokowits, chairman of the works council.
Currently, the bankruptcy filing applies solely to Recaro's automotive division. The company still produces car seats, office chairs, and airplane seats.
