Hat Trick: BBS Experiences Bankruptcy for Third Time
German wheel manufacturer BBS is, once again, confronting bankruptcy. However, it’s likely to come out on the other side intact if its own history is anything to go by. During its quest for global dominance, BBS found itself out of money in 2007. Decades of expansion crippled the company’s finances, but not before it became one of the most recognizable wheel brands on the tarmac. In fact, few vehicles from the the tail end of the 20th century suffer from having a set wrapped in rubber.
What would Subaru even be without its World Rally Blue paint and gold BBS wheels? How many racing video games bother to launch without the brand having its best styles represented in the customization menu? Who dares claim the BBS RS isn’t the most iconic mesh wheel in the history of tuning culture?
The brand’s second bankruptcy came in 2011, making it seem as though the company has trouble coping with an incoming or outgoing recession — which brings us to today.
According to Autoevolution, BBS Kraftfahrzeugtechnik AG is facing insolvency with tough times on the horizon. Manufacturers around the world were hit hard by the pandemic, and BBS specifically faults COVID-19 for its current situation. “Due to the unexpected disappearance of promised payments, insolvency threatens in the coming months,” the company wrote in an internal memo.
From Autoevolution:
Under insolvency administrator and lawyer Thomas Oberle, the company aims to continue its “extensive restructuring course” in order to bounce back to profitability. “We have a time of change ahead of us,” reads another statement, and obviously, securing the financial future of BBS is top priority.
Considering that Oberle has also administrated the previous insolvency from 2011, it’s high time for the administrator to prove the naysayers wrong. However, it won’t be an easy job if you take a look at the ridiculously low share price of BBS.
While this likely means another change in ownership, the manufacturer said it won’t cease production during the restructuring phase. We imagine it has enough brand recognition to be scooped up by a company looking to turn things around.
[Image: Davis Ghosh/Shutterstock]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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BBS Gmbh manufactures cast wheels BBS Japan manufactures forged wheels and does the motor sport supply. there are no capital connection between the two.
They just failed to adapt. They were hot when typical sports/sporty cars came with 15" wheels, even 14" steelies on base MR2/CRX/Mustang/Eclipse/etc. Custom wheels, like custom/aftermarket seats are tiny specialized markets and or mostly brodozer, off road, side by sides, but also Chinese made and highly competitive. Markets shift and you ride the gravytrain while it lasts. Look at Alpine, Blaupunked, Kodak, Diamondback and others. Nah, don't shed a tear.