Italian automotive component manufacturer Proma Group has signed an investment agreement to take over the ownership of the German automotive seat manufacturer Recaro Automotive.
The German company filed for bankruptcy earlier this year due to severe financial struggles, driven by substantial price increases and the loss of a key contract.
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The agreement will allow Recaro Automotive to continue operations and plan a relaunch across Europe scheduled for January 2025.
Proma Group CEO Luca Pino said: “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.
“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.”
As part of the transition, Proma Group will retain key personnel from Recaro Automotive’s Sales and Technology departments, primarily based in the Stuttgart region.
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By GlobalDataThe shift will also include the launch of aftermarket seats in January 2025, with OEM production being moved to Italy.
The first seats from the new production line are set to enter manufacturing soon, the Italian company said.
Recaro Automotive’s operations in North America and Japan remain unaffected by this change.
With a turnover of €1.1bn, Proma Group specialises in automotive components, including seat structures, body assemblies, and suspension beams.
The company operates 25 plants across three continents and employs 5,000 people.
Proma Group holds over 30 international patents and focuses on innovative, technologically advanced solutions to reduce vehicle carbon emissions.
