Marketing Manager
Recaro Automotive GmbH, based in Kirchheim unter Teck, has filed for insolvency. This decision was driven by several financial challenges, including steep price increases over recent years and the loss of a significant contract. These issues, combined with legacy products and a dip in vehicle purchases in the region, have put a strain on the company.
What Led to This?
Recaro faced extreme price increases and lost a major contract, which severely impacted their finances. Additionally, older product lines and declining vehicle sales in the region hampered their ability to develop new products.
Current Status
On July 29, 2024, the Local Court of Esslingen approved preliminary self-administration for Recaro. Attorney Holger Blümle from Schultze & Braun has been appointed as the preliminary custodian, while Baker Tilly, an international consulting firm, is offering legal guidance.
Impact on Employees
Insolvency payments will ensure that employees continue to receive their wages and salaries. On Tuesday morning, a town hall meeting was held with employees, the trade union, the works council, and local politicians to discuss the situation. The company plans to keep full production going during the insolvency process to meet all current orders and respond to new customer inquiries.
Support and Future Plans
Shareholders have emphasised Recaro’s importance to the region and pledged their support for restructuring efforts. The insolvency proceedings are confined to Recaro Automotive GmbH and do not affect any other companies in the group.
Recaro aims to strengthen its local and global position through this process, under judicial supervision and with Baker Tilly’s support. By collaborating with employees, suppliers, and customers, and leveraging an insolvency plan under German law, Recaro expects to stabilise and regain solid ground in the near future.
Recaro’s Legacy
Recaro is known for its commitment to quality, innovation, safety, and comfort. With over sixty years of experience in high-quality German engineering, the company employs more than 200 people.
About Recaro’s Advisors
Baker Tilly, with 41,000 employees in 145 countries, offers a wide range of consulting services. Their auditors, lawyers, tax advisors, and management consultants work together to provide tailored solutions for their clients.
Schultze & Braun is an interdisciplinary firm of lawyers and tax advisors in Germany, with over 500 specialised staff across more than 30 locations in Europe.
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