Bankruptcy and production stopped. This is the end of the German automotive company – Super Biznes (se.pl)

More bad news from the market regarding mass layoffs. It turns out that after the July bankruptcy, the manufacturer of car seats, children’s car seats and office chairs completely suspends production. Everything indicates that, contrary to previous assurances, Recaro is being liquidated. 200 people employed in Kirchheim, Germany, may lose their jobs.

Company liquidation and layoffs

Recently, there has been more and more information about liquidation or large cuts in the automotive and production industries. This time, the manufacturer of armchairs and car seats announced bankruptcy. Although the company has been taking care of the related formalities since the holidays, there was still hope to maintain production and many jobs. Now it turns out that the worst-case scenario is being realized. As he says "Republic" the bankruptcy of the world-famous Recaro brand will affect approximately 215 employees. Attempts to save the company failed to prevent the closure of production and mass production layoffs. As reported by “Frankfurter Allgemeine Zeitung” (FAZ), Recaro will end production in Kirchheim unter Teck at the end of the year. An agreement was signed with just over 200 employees. “According to the spokesman of the bankruptcy administration, all employees will lose their jobs,” reports a German newspaper. The report shows that talks are ongoing with a possible investor, but the latter shows no interest in maintaining production.

Problems of the automotive industry

It is worth mentioning that on October 1, 2024, liquidation proceedings were initiated for BBS Automotive GmbH based in Schiltach (Baden-Württemberg). The manufacturer of aluminum rims in the luxury segment also filed for bankruptcy in July this year. In addition, in Germany itself, in the second half of the year, the following companies also announced bankruptcy: FLABEG, Morat Swobota Motion, Erwin Lutz, WKW and Marquardt.

What problems have companies in Europe been struggling with lately? Which causes well-known large enterprises to disappear from the market or significantly reduce their operations and have to lay off employees. This is mainly due to rising costs, new technologies, and changing competition. More bad news from the market regarding mass layoffs. It turns out that after the July bankruptcy, the manufacturer of car seats, children’s car seats and office chairs completely suspends production. Everything indicates that, contrary to previous assurances, Recaro is being liquidated. 200 people employed in Kirchheim, Germany, may lose their jobs.