The world’s most famous car seat manufacturer is out of money.
On Monday, Car week reported Recaro Automotive files for bankruptcy through the District Court of Esslingen, Germany.
Recaro Automotive GmbH reportedly has 215 employees at its factory in Kirchheim under Teck, Germany.
Bus employees reported they were caught off guard and were not informed about the bankruptcy filing in advance.
“We hope that all options are exhausted to secure jobs and find a sustainable solution“, said the main trade union IG Metall, according to Automobilwoche.
Recaro Automotive is the only division that has filed for bankruptcy. The company is fragmented and complicated. Recaro also makes office chairs for airplanes and gaming chairs, as well as booster seats for infants. All of these products come from different divisions, which are not affected by the bankruptcy filing.
In 2011 Johnson Controls acquired Recaro Automotive division. John Controls transformed into Adient in 2016, and then sold Recaro Automotive to Detroit-based private investment firm Raven Acquisitions, LLC in 2020.
It’s unclear what the bankruptcy filing means in the immediate future for Recaro Automotive. The company is responsible for producing high-performance seats for a variety of vehicles, including the optional high-back seats in the Ford Mustang Dark Horse.