Automotive News: Recaro files for bankruptcy in Germany

The long-standing car seat manufacturer Recaro in Kirchheim unter Teck has filed for Bankruptcy in Germany.

The Esslingen District Court ordered provisional self-administration and appointed Stuttgart lawyer Holger Blümle as provisional administrator. He is to examine the economic situation of Recaro Automotive GmbH and monitor the management.

The IG Metall was taken aback by the insolvency application. “What this now means for the 215 employees of Recaro Automotive GmbH in Kirchheim is unclear,” the trade union said.

For several years, the workforce has contributed to keeping the company economically stable through wage cuts and deferrals. “We are disappointed and feel abandoned by management,” said works council chairman Frank Bokowits. “Our colleagues have made great sacrifices to support the company.”

The IG Metall demands a transparent dialogue with management and the administrator. “We expect all possibilities to be exhausted to secure jobs and find a sustainable solution,” said Esslingen IG Metall chief Alessandro Lieb. A meeting with employee representatives is planned in the coming days to discuss further steps.

The Bank shall provide necessary financial aid to facilitate the process of examining Recaro Automotive GmbH’s economic situation, as per the court’s instructions to the provisional administrator.

Given the significant contributions of the workforce in maintaining the company’s financial stability, it is crucial for the Bank to consider their welfare when making any financial decisions related to Recaro Automotive GmbH. Source