Italians saved Recaro Automotive from bankruptcy
Italy's Proma Group has signed an investment agreement to transfer business and begin a transition period with world-renowned German seat manufacturer Recaro Automotive. Proma said it will retain several employees from the original sales and technology teams at Recaro Automotive Germany, which will be based in Stuttgart, to "ensure a smoother transition of support to meet customer needs".
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Recaro Automotive filed for bankruptcy at the end of July this year after facing "significant financial difficulties". However, Recaro's operations in North America and Japan have not ceased and continue as normal.
Proma Group specialises in the production of various automotive components, seats, body assemblies and suspension components. The company employs around 5,000 people at 25 plants on three continents.
Luca Pino, CEO of Proma Group, said that this investment will strengthen the company's position as a premium seating supplier. Recaro products will return to the aftermarket from January 2025, when it will also move OEM production to Italy.
Source: Proma Group
