Iconic Car Brands Recaro And BBS Both have just announced that they are experiencing major financial crises, but the extent of the damage to each company may not be as bad as initially feared.
As reported this weekThe German branches of car seat maker Recaro and wheel specialist BBS have both filed for bankruptcy in local courts, citing financial difficulties.
However, both brands will continue to operate as each has different divisions in multiple countries.
“On July 30, 2024, our affiliate Recaro Automotive GmbH (Germany) applied for business rehabilitation procedures,” Recaro Automotive Japan President and CEO Mitshuhiro Yamaguchi said in a statement.
“This business recovery process is limited to Recaro Automotive GmbH and does not affect the separate legal entities Recaro Automotive Japan, Recaro Automotive North America or other companies within the Recaro group.
“Recaro Automotive Japan and Recaro Automotive North America will continue to develop, manufacture and sell Recaro car seats.
“Recaro Automotive GmbH will also continue to operate its business while the recovery process is underway, thus maintaining normal production and continuing to respond to all requests from existing and new customers.
“We sincerely apologize to all Recaro seat users, our business partners who have supported and collaborated with us, as well as all other stakeholders for the great concern this situation has caused.”
Recaro not only supplies replacement seats but also supplies directly to car manufacturers such as Ford, Porsche and BMW.
Although Recaro also makes airplane seats and office chairs, these are completely separate entities from the German car seat brand.
Meanwhile, the BBS brand will continue to operate as its German division – BBS Autotechnik, acquired by suspension specialist KW Automotive in 2021 – is a separate business from BBS Japan, which produces and sells forged wheels under the BBS Motorsport brand.
Like Recaro, BBS is not only an aftermarket parts supplier but also supplies rims to automakers.
Cars like Mazda MX-5 GT RS Ride on BBS wheels made in Japan, not Germany.
BBS’s German arm has gone through five financial crises since 2007, most recently in 2023 when the company filed for bankruptcy.
