Recaro Automotive saved by Proma Group investment

Saved from summer bankruptcy

Shockwaves were sent through the motoring world on July 30th when Recaro Automotive announced it would be entering administration, potentially leading to bankruptcy. The company is best known for manufacturing sports seats that have been used by some of the biggest car brands, including Aston Martin, VW, Audi and Ford.

Recaro released a statement in October, assuring fans and customers it was still in business and “progressing swiftly with several interested parties.”

One of the interest parties was the Italian company Proma Group, and an investment agreement with Recaro Automotive has now been signed in Germany allowing operations to continue and relaunch across Europe in January 2025.

Who is Proma Group?

Founded in 1980, Proma Group has become a big deal in the automotive space, specialising in the production of components, seat structures, body assemblies and suspension beams. The Italian company’s huge operation had a turnover of 1.1 billion euros and owns 25 plants across three continents. With 5,000 employees and over 30 international patents, the company says it is “committed to innovation in cost effective and reliable manner”.

What happens next?

As part of the transition period, Proma Group will retain several employees from the original Sales and Technology departments at Recaro in Stuttgart, Germany.
 
In January, aftermarket seats will be available on the market and OEM production will be transferred to Italy with the first seats entering production. This is good news for INEOS, which has used Recaro seats on its Grenadier in recent years and had to pause production following the administration announcement in the summer.

Recaro’s operations in North American and Japan, however, will continue to function as normal.

“A symbol of Italian manufacturing excellence”

“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,” says Luca Pino, CEO Proma Group. “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”.

words: Mike Booth
pictures: Mazda & Recaro Automotive