[Mark]

BIMMERPOST NEWS

BBS files for bankruptcy... again.

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BBS, the iconic wheel maker officially filed for Bankruptcy on December 30, 2010. Truly sad news from one of the best wheel makers on the planet. A company that has teamed up with BMW many times to design and create specific wheels.

BBS has created some of the most memorable light alloy wheels, but despite that had filed for Bankruptcy back in 2007, only to be saved by Belgian holding firm Punch international, allowing BBS to continue their daily operations.

According to German language paper FAZ.net, the move was a bit of a surprise to everyone involved, including corporate partner IG Metall whose CEO told FAZ that he planned a multi-million dollar investment in the firm. Competing wheel maker, Ronal, also had plans to purchase a BBS factory in Germany, which BBS states is still on track.

The original reasons cited for Bankruptcy in 2007 where the rising costs of Aluminum, it seems that BBS have been unable to get over the same hurdles and is now intent on shutting down major OE wheels production in order to focus on its "core" bussiness of building speciality wheels only.

BBS reached out to Autoblog and gave the following quote:

"In Germany, BBS has filed for restructuring (Similar to the US Chapter 11) and at the same time they have a LOI with Ronal to buy the BBS plant in Herbolzheim. (Herbolzheim is the production facility for standard OEM high volume production.)

The intent of BBS is to re-focus on our core business in Schiltach; Motorsports, OES business (Ferrari, Porsche, etc... and including our US based programs with Ford, Toyota, etc.), High-end aftermarket and Technology development. (Schiltach is the BBS headquarters responsible for all engineering, development, high-end and specialty production, etc.)

BBS began life as a "Racing wheel" company (in Schiltach) over 40 years ago, several years later they began producing aftermarket wheels and a few years later they were producing "Specialty" OE wheels (OES).

BBS is just returning to its core business."

Source: FAZ.net via Autoblog

[lm1z]

Really interesting...
"The original reasons cited for Bankruptcy in 2007 where the rising costs of Aluminum, it seems that BBS have been unable to get over the same hurdles and is now intent on shutting down major OE wheels production in order to focus on its "core" bussiness of building speciality wheels only."

I'm slightly confused, but there are a lot of variables here that aren't listed.
You would think that the increase of OE wheel production would help decrease their costs of raw materials and increase their volume. Even by taking a much lower margin on the OE wheels, again, this production should have helped to yield higher margins on their specialty lines...

They obviously were losing a ton of money in the OE wheel segment, but it kind of makes you wonder what the tradeoff was. Brand awareness? Correct me if I'm wrong but aren't the forged 19" rims on the M3 made by BBS? If so, I didn't know this until a forum member told me.

[bringsmewomen]

Does this mean we'll be able to get some cheap wheels soon?

[Bart@AUTOcouture]

Crazy

[Prissy]

BBS Clearance

[Nater]

This is why I despise replica/knockoff wheels...

[Twisted Six]

Getting back to their CORE business.......pretty smart actually.

Streamline what works....cut the fat.

[donovan]

Cheap BBS wheels coming this way sooooooooooooon

[lm1z]

Originally Posted by bringsmewomen

Does this mean we'll be able to get some cheap wheels soon?

Why would they be cheaper? Both labor and raw materials costs are going up. BBS is still a prestigious name.
They'll be the same if not more expensive.

[Twisted Six]

Originally Posted by donovan

Cheap BBS wheels coming this way sooooooooooooon

If you read the article......I don't think you'll come to the same conclusion.

[AnooooOH]

fvck fake wheels!

[M3roar]

sad news... but Im happy I own 3 sets of them. BBS CH, BBS RE & BBS LMs.

[335BBS]

This is sad. I've had BBS on my last 5 cars. Black 19" ch now.

[cssnms]

With the exception of a few posters on here, has anyone else even read the article???

BBS isn't going out of business, but rather like many companies in today's economy, they are using this as an opportunity to restructure their business in order to get back to the basics (i.e. still manufacturing/selling high-end after market wheels), while at the same time getting out of the OEM mass produced wheel segment.

[STICKY335]

Originally Posted by Nater

This is why I despise replica/knockoff wheels...

^^
NO DOUBT ABOUT IT that replica wheels are killing the marketing of BBS wheels....

[Crazy Bimmer]

GTM posted about the topic in the M3 section.

http://www.m3post.com/forums/showthr...&highlight=bbs

Originally Posted by GTM_Challenge

BBS is doing some restructuring of their business direction basically.

BBS intends to re-focus on their core business in Schiltach; Motorsports, Specialty OE business (Ferrari, Porsche, BMW etc… and including their US based programs with Ford, Toyota, etc.), High-end aftermarket and Technology development. (Schiltach is the BBS headquarters and is responsible for all engineering, development, high-end and specialty production, etc.) The only segment that they are taking away is the high volume base level OEM business

BBS has filed for restructuring (Similar to the US Chapter 11) in Germany at the same time that they have a LOI with Ronal to buy the BBS plant in Herbolzheim. (Herbolzheim is the production facility for standard OEM high volume production.)

BBS of America operates as a separate company, and has a very positive result for 2010. They have been rebuilding their aftermarket product range for the past 1.5 years and we are entering 2011 with a much stronger program. In the end, BBS will become a leaner, more focused, high-end supplier.

[emthree4me]

Ford and specially GM needs to buy this company since they been coming up with crappy loser wheels for their OEM cars

[XYR03]

I wonder how the rep manufactures stay in business....mmmm

[danilloe90]

BBS is not going out of business this is a Chapter 11 and not Chapter 7 bankruptcy! People need to relax. This is simply a bankruptcy filing which can be due to multiple things. The main outcome of this will be that BBS's assets will be taken over by an bankruptcy court administrator which directly freezes all of their assets and all debt. This prevent creditors from repossessing or charging insane fees for unpaid liabilities.

In plain terms, BBS will go through a reorganization of some of its debts and will cut out some of its nonmoney making entities or lines. Same thing happened to GM remember? and you can still buy a new Corvette but now you can't buy a new Hummer. Get it?

[Tallest]

BBS makes almost all BMW wheels, but smaller size are made by BOrbet as well.

[m3fanatics92]

Originally Posted by bringsmewomen

Does this mean we'll be able to get some cheap wheels soon?

it means you have to pay a little now or alot later due to discontinued production

[lm1z]

Originally Posted by danilloe90

BBS is not going out of business this is a Chapter 11 and not Chapter 7 bankruptcy! People need to relax. This is simply a bankruptcy filing which can be due to multiple things. The main outcome of this will be that BBS's assets will be taken over by an bankruptcy court administrator which directly freezes all of their assets and all debt. This prevent creditors from repossessing or charging insane fees for unpaid liabilities.

In plain terms, BBS will go through a reorganization of some of its debts and will cut out some of its nonmoney making entities or lines. Same thing happened to GM remember? and you can still buy a new Corvette but now you can't buy a new Hummer. Get it?

+1.

For a pretty sizable company, It's crazy to think how much money they must have been losing when producing OEM wheels...

While they still might have been making a small amount on each wheel sold, the expenses must have been ridiculous - think about it. Imagine how many different wheel STYLES they produced.

Going back a core set of special order wheels is definitely the way to go.

Side note - I LOVE my OEM 19"s.