Is Recaro Going Out Of Business? Here’s What We Know

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After over a century in business, car seat manufacturer Recaro has filed for bankruptcy. In 2020, the company was purchased by Raven Acquisitions, a move explained at the time as something that would allow for more flexibility to meet market demands. At the time, it was reported the company generated $150 million in revenue. Fast forward just a few years later to 2024, and there are now concerns about whether the company is going to outright cease to exist in the coming days. This news comes just a month after Fisker, another automotive company, filed for bankruptcy — although Fisker’s bankruptcy was less of a surprise.

Recaro’s history dates back to 1906 — when it was known as Reutter Carosserie as a car body supplier — but the reputation it has built for itself today started in 1960 when its attention changed to car seats. It officially rebranded as Recaro in 1963. Today, the company is known for producing seats for many of the big automakers including Ford, Subaru, Volkswagen, and many others. The company went on to become a trailblazer in many aspects, whether it was including speakers in headrests, or including a side airbag in its seats.

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For the time being, it’s difficult to tell what the future holds for the company. IG Metall, the union representing 215 of Recaro’s employees, says it’s not clear what the filing means for them or the company. Aside from the union, Recaro employs close to 1,000 people. Reports indicate the employees were caught off-guard by the bankruptcy filing, but this might not mean the immediate end of Recaro. 

Operations within the company can continue to go on as long as it’s under the eye of an administrator. The company was approved for self-administration as a result of the filing, and an administrator will oversee Recaro’s financials and management as of right now. The Recaro brand covers other areas such as gaming chairs and aircraft seating, but only the automotive section has been impacted as a result of this bankruptcy filing. 

If the company ultimately ceases operations, it would be a big blow to the luxury seating sector. For example, the Ford Mustang Dark Horse gives buyers the option of going for Recaro seating, and they come standard on higher-end options like the Ford Mustang GTD. On top of that, Ford gives you the ability to buy Recaro seats a la carte, an option that would disappear with no immediate successor if the company goes under. If it does end up being the end, those Recaro seats you have might end up being worth a pretty penny in the future.