Doppelte Insolvenz-Schockwelle: Recaro Automotive und BBS in finanzieller Schieflage

Recaro faces financial collapse, while BBS falls into bankruptcy again

Unexpectedly, the car seat manufacturer and wheel maker file for bankruptcy proceedings…

Whether in a car, airplane, train, or at a desk, it's likely that everyone has at some point sat in a Recaro seat – even professional footballers lounge on this brand of seating by the pitch. Recaro Automotive has now applied for bankruptcy proceedings to be initiated.

Three months have passed since the licensing Recaro Group revealed a 25% increase in their 2022 sales, projecting this trend to extend into 2023. The entire firm anticipates a comparable surge in growth and a "promising future" for 2024. However, this optimistic forecast seemingly excludes the automotive division of the car parts supplier.

Even IG Metall was taken by surprise by the bankruptcy filing, as reported by Automobilwoche: "The implications for Recaro Automotive GmbH's 215 employees in Kirchheim are uncertain," stated the union. "We anticipate all options will be explored to preserve jobs and seek a long-term resolution."

The works council has expressed disappointment, noting that the workforce's sacrifices, including wage deferrals, played a significant role in maintaining the company's economic stability. "We are disheartened and feel abandoned by the management," stated Frank Bokowits, the head of the works council, for the record.

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Recaro Automotive isn't alone in its financial struggles, as BBS, a long-established wheel manufacturer, has also filed for bankruptcy. This isn't the first time for BBS; they've previously filed in 2007, 2010, 2020, and 2023. The company, which is based in Rottweil, had already halted wage payments for the months of May and June.

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Previously, a new owner for the BBS locations and brand rights had been identified in IHS Management Services from Ratingen, who stated in a release: "We will never abandon those who have joined us on this journey. We will never relinquish the BBS brand, which we view as one of the major global German brands. We have a strategy and are fully committed to executing it."

The union IG-Metall appears to be taken aback once again. He claims to be unaware of the reasons. However, the actions of the company's management leave him puzzled. The future of these two pillars of the German automotive supply industry remains uncertain at the moment.

Source: Automotive Week

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