Insolvency in Kirchheim: Recaro meets the car supplier industry hard

Insolvency in Kirchheim: Recaro meets the car supplier industry hard

Stand: 30.07.2024, 11:44 a.m.

by: Lars-EREVELSTEIN

Effects of bankruptcy on society

The insolvency of the renowned car supplier Recaro in Kirchheim under Teck not only raises questions about the jobs of the 215 employees, but also has far-reaching social implications. At a time when many German companies are fighting with economic challenges, this incident illustrates uncertainty on the labor market and the pressure on employees.

Tradition and Innovation at Recaro

With a story that goes back to 1906, Recaro has an important place in the automotive industry. Originally founded as a "Stuttgart Carossenserie and Radfabrik", the company developed various interior fittings and car seats and in 1965 launched the "world's first" retrofit seat for automobiles. These innovations testify to Recaro's commitment to progress and quality.

Reactions of the union and the employee

The IG Metall union is disappointed with development and demands more transparency from management. Works council chief Frank Bokowits spoke of a feeling of betrayal after the employees had contributed to the stabilization of the company by giving up salary increases. The Esslingen IG Metall boss Alessandro Lieb calls for the management and the provisional actor Holger Blümle to exploit all the options for securing jobs. A meeting with the company representatives is planned for the next few days.

Number of bankruptcies increases

The bankruptcy events in Germany worries many industry experts. Companies have to adapt to the changing market conditions in order to remain competitive. An analysis by the Falkensteg management consultancy shows that the number of bankruptcies in the automotive supplier industry in the first half of 2024 rose by 41 percent compared to the same period last year. This not only illustrates the difficulties of individual companies, but also the general uncertainties that deter potential investors.

Preliminary self-administration and management tasks

on Monday, July 29th, the Esslingen district court ordered the provisional self-administration for Recaro. This enables the provisional property manager to review the company's financial situation and, if necessary, take measures to renovate. So far, however, no further details about the planned steps are known. The uncertainty remains both for the employees and the entire region.

In summary, the insolvency of Recaro not only shows the fragile structures in the automotive supply industry, but also has far-reaching consequences for the employees. At a time when economic stability is threatened, the question remains how companies will be able to reinvent themselves and to secure the jobs of their employees in the long term.

- nag