Italian automotive parts manufacturer the Proma Group has agreed to invest an undisclosed amount in car seat maker Recaro Automotive, rescuing it from the brink of collapse.
The German firm was approved for self-administration by the Esslingen District Court in Germany in July, placing its future – and production for car manufacturers – into doubt.
Indeed, Ineos Automotive was recently forced to stop production of its Grenadier 4x4 because of a parts shortage, widely reported to have been seats from Recaro.
Proma has yet to detail the scale of its investment in Recaro, but it's substantial enough to allow the company to resume production of seats in January 2025.
This coincides with the scheduled restart of Ineos Grenadier output.
Proma added that it will move production to a plant in Italy, suggesting that the existing Recaro Automotive factory in Kirchheim unter Teck, Germany, may be shut.
The Italian firm said that it “will retain several employees” from the sales and technology departments of Recaro, however.
Proma CEO Luca Pino said: “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.
“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.”
Recaro Automotive’s North American and Japanese operations will continue business as usual.
The Recaro aircraft seat, gaming seat and child seat businesses were unaffected by Recaro Automotive's administration, being owned by the original Recaro company, Recaro Holding.
This firm licences its branding to Recaro Child Safety, a property of Avova, and Recaro Automotive.
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Could it be that Raven Acquisitions has asset stripped and, are now dumping Recaro Automotive?