Automobile industry - Autozulieferer Recaro files for insolvency
The traditional car seat manufacturer Recaro in Kirchheim under Teck has filed for insolvency. The Amtsgericht Esslingen ordered provisional self-administration on Monday and appointed Stuttgart lawyer Holger Blümle as provisional administrator. He is supposed to examine the economic situation of Recaro Automotive GmbH and oversee the management.
The IG Metall was taken by surprise by the insolvency application. "What this means for the 215 employees of Recaro Automotive GmbH in Kirchheim is unclear", the union stated.
For several years, the workforce has contributed to the economic stability of the company through wage sacrifices and postponements. "We are disappointed and feel abandoned by management", said works council chief Frank Bokowits. "Our colleagues have made great sacrifices to support the company."
The IG Metall demands a transparent dialogue with the management and the administrator. "We expect that all possibilities are exhausted to secure jobs and find a sustainable solution", said the Esslingen IG-Metall-chief Alessandro Lieb. A meeting with the works council representatives is planned in the coming days to discuss further proceedings.
- Recaro's insolvency filing has raised concerns in the metal industry of Baden-Württemberg, Germany, as many businesses rely on its components.
- The District Court in Esslingen will oversee the proceedings, given the company's significant impact on the local automobile industry.
- The church tower of Teck, a Baden-Württemberg landmark, stands as an iconic symbol of the region's rich tradition in manufacturing, including Recaro's struggles.
- The automobile industry has faced numerous challenges globally, and Recaro's insolvency serves as a reminder of these difficulties for companies in Germany and beyond.
- The provisional administrator, Holger Blümle, will engage with key stakeholders, including unions like IG Metall, to ensure a fair and balanced restructuring process.
- IG Metall, a leading labor union in the metal and automobile industries, has vowed to work closely with Blümle to explore all options for saving jobs and ensuring a sustainable future for the company.
- The Kirchheim community, home to Recaro, is hopeful that its historical district and the nearby Esslingen will rally to support the local industry and help the company navigate its insolvency proceedings.
