Proma Group, an Italian supplier of automotive parts, has stepped in at the 11th hour to rescue Recaro Automotive from financial ruin, and plans to relaunch the company as early as January 2025.
The legendary seat manufacturer filed for bankruptcy in July, causing distress among car buyers and automakers. In fact, the bankruptcy was linked to several production delays, including Ineos Automotive’s Grenadier SUV and Grenadier Quartermaster truck.
But Proma Group’s financial infusion will resuscitate the brand. “The agreement ensures that production will resume next year, with OEM seat manufacturing moving from Germany to Italy. Aftermarket seat availability is also expected to restart in January, a promising sign for customers and automakers reliant on Recaro’s reputation for quality,” Autoblog reports.
No word yet on the 215-person workforce that Recaro was set to lay off. However, Autoblog reports that Proma will retain “several key Recaro employees, particularly in the sales and technology departments, who will remain based in Stuttgart, Germany.”
In a statement, Proma Group CEO Luca Pino said he’s excited to be joining forces with Recaro.
“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,” Pino said. “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.”
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