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What The Recaro Automotive Bankruptcy Means For Porsche

Find out why this seismic shock resonates well beyond Porsche’s heritage and performance DNA

by Khris Bharath on August 2, 2024, 11:00

Recaro Automotive is one of the most well-known OEM seating companies and the news of its bankruptcy filing has sent shockwaves through the car world. The brand has been around for more than a century and is synonymous with performance and bolstered comfort. Several high-performance models and race cars have been fitted out with Recaro seats and it has been a fixture in enthusiast circles and motorsports for decades. In 2020, Recaro Holdings was split into different entities as part of when it was acquired by Michigan-based Raven Acquisitions, but this bankruptcy specifically targets the automotive division. The company has cited extreme price increases, a loss of major contracts,s and a lack of development of new products as some of the main reasons. While their aircraft, gaming, and child safety businesses remain unaffected, the heart of Recaro – automotive seats – is in turmoil.

Recaro’s Relationship With Porsche Goes Back Decades

My heart sinks when I think about how this would impact Porsche. The histories of Recaro and Porsche are intertwined and stretch back to the 1950s. Recaro, known then as Stuttgarter Karosseriewerk Reutter und Co. (REuterr CAROsserie), wasn’t crafting seats; it was crafting the body of the iconic Porsche 356. In a strategic move, Recaro sold its body plant to Porsche in 1963, allowing each company to focus on its core competency. Recaro honed its expertise in seat design and manufacturing, becoming a global leader in the automotive seating space. This focus translated beautifully to Porsche, with the iconic 911 becoming synonymous with Recaro seats.

Back in the 1970s, Recaro was the first to develop a seat to feature an integrated seat belt, along with the very first racing seat. Other innovations include things like the introduction of the first electro-pneumatic lumbar support in 1977. Subsequent generations of the 911, particularly performance-oriented models like the GT3 and GT2 RS, have further cemented Recaro’s legendary status among enthusiasts. The combination of Porsche’s performance DNA and Recaro’s ergonomic genius has created some of the most coveted seats in the world.

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Today, Recaro manufactures a wide range of seats across four primary categories. Dynamic, Race, Comfort, and Classic. Prices range from about $1,300 to $5,000 or more for the more carbon-fiber race-focused seats. Some of the more recent track-based models to offer Recaro seats are:

  • Porsche 911 GT2 RS Clubsport

  • Porsche 911 GT3 Cup Type 991

  • Porsche 935

  • Porsche Cayman GT4 Clubsport

  • Porsche Cayman GT4 RS Clubsport

  • Manthey GT 2 RS Clubsport 25

The Fate Of Recaro And Impact On The Aftermarket

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At this point, the future of Recaro is uncertain. A potential buyer could emerge to rescue the company, but liquidation remains a real possibility, with potentially far-reaching consequences for the broader industry, including for the likes of Porsche. Finding suitable replacements for Recaro’s seats would take time and investments, potentially delaying new model launches and increasing production costs. Moreover, the loss of such a major player could disrupt supply chains and could lead to a shortage of high-performance seats across the industry.

Also, the availability and pricing of Recaro seats in the aftermarket could also be significantly impacted, making them even more desirable and potentially out of reach for many. It’s a classic case of demand versus supply. The Porsche aftermarket is already one of the most volatile ones and collectors will most likely be looking for models that came equipped with Recaro seats.

The outcome of Recaro Automotive’s bankruptcy will undoubtedly shape the industry for years to come. The potential loss of the Porsche-Recaro partnership would be a significant blow to the Porsche community. The Recaro bankruptcy serves as a stark reminder of the challenges even established suppliers face in today’s automotive world. The absence of Recaro could be a major concern for Porsche as their seats are deeply ingrained in the Porsche driving experience, offering a level of driver connection and feedback that’s become a hallmark of the brand.

Khris Bharath

Khris Bharath

Khris is a Mechanical Engineer and a classic car aficionado, who adores his Jags, Alfas, and old-school American muscle cars. He keeps tabs on everything from super exotics like an old EB 110 to the latest from Lucid and geeks out on three-row family haulers. Formula One remains very close to his heart, and he diligently makes time to tune in for the Grand Prix on Sundays. Khris also loves his road trips and he prefers a stick shift over an auto. Read full bio