The insolvency affects about 215 employees, whose future is now uncertain. The IG Metall union expressed surprise and called for a transparent dialogue to find possible solutions for securing jobs. “We are disappointed and feel let down by management,” said works council chairman Frank Bokowits to the dpa news agency. “Our colleagues have made great sacrifices to support the company.”
Restructuring Measures for Recaro
Recaro Automotive has been owned by the US investment firm Raven Acquisition since 2016. The company produces under the license of Stuttgart’s Recaro Holding, which manufactures aircraft and gaming seats. Both companies share common roots but operate as legally independent entities. The traditional company has struggled with economic challenges in recent years.
Despite the sacrifices made by the workforce, the financial problems could not be overcome. The future of the company and its employees now depends on the decisions of the insolvency administrator and any potential restructuring measures.
The insolvency of Recaro reflects the difficulties many medium-sized companies in the automotive industry are currently facing. Rising costs, increased competition, and the transformation towards new technologies are putting companies under increasing pressure.
The coming weeks will show whether Recaro can find a way to overcome the crisis and find a sustainable solution for the employees and the company. The union and the workforce hope for a positive development and the securing of jobs.
Recaro Automotive is insolvent. 215 employees are affected. IG Metall demands a transparent dialogue for job security. The company is struggling with economic challenges. The future depends on restructuring measures.