Italian Company Steps In to Save Recaro

If you’ve ridden in a sporty car in the last several decades, there’s a good chance your rear end has been cradled by a Recaro seat at some point. The German seat maker has fallen on hard times in recent years, however, filing bankruptcy and raising speculation that its end could be near. Thankfully, an Italian parts supply company recently stepped in to save the day.

Proma Group is taking control of Recaro as early as January and will retain the company’s German employees. Proma Group 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.”

These sorts of takeovers don’t always come with happy endings, especially if it’s private equity doing the buying. Recaro likely has a much better shot with Proma, as it knows the industry and will hopefully maintain quality instead of focusing on carving out as many cost drivers as possible. At the same time, the move should help Recaro meet its obligations to OEMs, including Ineos, which had delayed production due to the company’s inability to deliver enough seats for its off-roaders.

[Images: Recaro]

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