Shock for BBS: The renowned car supplier again insolvent

Shock for BBS: The renowned car supplier again insolvent

The economic situation in Germany is increasingly tense, which is also evident in the automotive supply industry. A current example is the bankruptcy of the traditional BBS company, which is now facing an uncertain future.

economic challenges for automotive suppliers

The bankruptcy of the rim manufacturer BBS, which was officially announced on July 26, 2024, is the latest indication of the difficulties in the industry. With this bankruptcy, the company has to worry about its future for the fifth time in its history. In the past few years, BBS, an important provider of vehicle rims, have already seen itself several financial challenges, with previous bankruptcies in 2007, 2010, 2020 and 2023.

effects on the workforce

The bankruptcy has direct episodes for around 270 employees who are employed in the two works in Schiltach and Herbolzheim. According to the union representatives, the bankruptcy occurred against the background that have already been outstanding, which have not been paid in time in the past few months. The management had previously asserted that there was a plan to ensure the company's financial stability, which has now proven to be inadequate.

The role of investors and structural problems

at the end of 2023, the Turkish ISH Group joined BBS as an investor, with the promise to secure jobs and make investments. The company should stabilize this strategic decision, but the persistently high energy prices and a decline in sales proved to be a hindrance. According to experts from Falkensteg, this is part of a larger trend: In the first half of 2024, the number of bankruptcies among larger companies increased by 41 percent compared to the previous year.

BBS as a symbol of the crisis in the industry

BBS, founded in 1970, is not only a manufacturer, but was also responsible for the equipment of Michael Schumacher's first Formula 1 World Champion car with rims. This connection to motorsport history gives the company a special meaning. But the bankruptcy shows how even traditional companies are under pressure to adapt to the changing market conditions and the global economic situation.

conclusion: a trend with worrying perspectives

The latest developments at BBS illustrate the challenges that the entire industry is facing. Expert: Inside, warn that the rescue of insolvent companies is becoming increasingly difficult, which not only has a negative impact on those affected, but also endanger the sector's innovative strength as a whole. The coming months will be crucial to see whether and how companies and BBS can create a turn to remain in international competition.

- Nag