Iconic automotive brands Recaro and BBS both recently announced they were experiencing major financial turmoil, but the extent of the damage to each company may not be as bad as first feared.
As reported this week, the German divisions of automotive seat maker Recaro and wheel specialist BBS each filed for insolvency with their local courts, citing financial hardship.
However, both brands will continue to operate, as each has different divisions across multiple countries.
“On July 30, 2024, our affiliate Recaro Automotive GmbH (Germany) filed for business rehabilitation procedures,” said Recaro Automotive Japan president and CEO Mitshuhiro Yamaguchi in a statement.
“This business rehabilitation procedure is limited to Recaro Automotive GmbH and does not affect separate legal entities Recaro Automotive Japan, Recaro Automotive North America, or other Recaro group companies.
“Recaro Automotive Japan and Recaro Automotive North America will continue to develop, manufacture, and sell Recaro car seats.
“Recaro Automotive GmbH will also continue its business while proceeding with the rehabilitation procedure, so it will maintain normal production and continue to respond to all inquiries from existing orders and new customers.
“We sincerely apologise to all Recaro seat users, business partners who have supported and cooperated with us, and all other related parties for the great concern caused by this situation.”
Recaro offers not only aftermarket seats, but also directly supplies car manufacturers such as Ford, Porsche and BMW.
While Recaro does also make aircraft seats and office chairs, these too are completely separate entities to its German automotive seating brand.
The BBS brand meanwhile will also continue to operate, as its German division – BBS Autotechnik, acquired by suspension specialist KW Automotive in 2021 – is a separate business to BBS Japan, which manufactures and sells forged wheels under the BBS Motorsport banner.
As with Recaro, BBS isn’t just a company supplying the aftermarket, as it also supplies rims to car manufacturers.
Cars like the Mazda MX-5 GT RS ride on BBS wheels made in Japan, not Germany.
The German arm of BBS has experienced five financial crises since 2007, most recently in 2023 when it filed for bankruptcy.
