Is Recaro Going Out Of Business? Here's What We Know

Late last month it was announced that RECARO, the company responsible for producing iconic racing seats was filing for insolvency; at least that's what everyone thought. The reality is that only a small part of the vast company that comprises the Recaro empire is having a rough time financially. According to a press release from Recaro, the company filing for bankruptcy goes by the name of "RECARO Automotive GmbH," but that doesn't really clear anything up because what everyone really wants to know is whether or not the company as enthusiasts know it is going under.

The good news is that your racing seats are safe, at least if you live in North America. Cars like the Nissan Z NISMO will still come with Recaro seats. We reached out to RECARO Automotive North America, Inc. and a spokesperson clarified that its division is not at all affected by the filing of RECARO Automotive GmbH. Like many large multinational companies, Recaro doesn't consist of just a single company that makes seats. It's comprised of a large network of manufacturers, brands, and licensees that hold the name RECARO.

RECARO is a holding company that licenses out the name to different companies that cover a number of regions and businesses. Those companies are RECARO Automotive North America, Inc. (the company you have likely heard about and are concerned about), RECARO Automotive Japan Co. LTD, RECARO Automotive Composites Engineering, LLC, RECARO Automotive Components (Shenzhen) CO., LTD, RECARO Automotive (Shenzhen) Co. Ltd., and RECARO Automotive's commercial vehicle units (the license holder that works with automotive manufacturers). RECARO Holding also has licensees that cover child seating/strollers and aircraft seating.

The company that filed for insolvency last month was the German license holder of the Recaro name. As for German automotive enthusiasts who are concerned, the company's press release reads: "The company plans to maintain full production during the insolvency proceedings to continue fulfilling all existing orders and new customer inquiries."

Corporate structures can be a mess and it's an unfortunate reality of very large companies like Recaro. But rest assured, you can still buy racing seats for your car.