UPDATE: BBS Insolvency Isn’t Quite as Bad as We First Thought

Earlier this week, we reported that the aftermarket wheel supplier BBS was headed into insolvency. When that story was published, we noted that we had reached out to BBS for comment or clarification on what lies ahead for the brand.

Craig Donnelly, president of BBS of America, Inc., kindly took the time to explain to Hagerty the nuances of the BBS name and brand, and thanks to his explanation, we now know that the news of the move to insolvency isn’t quite as bad as it originally seemed.

“The BBS brand has been co-owned for over 10 years,” Donnelly explained. “The German factory that just went into insolvency is the factory that produces all of the cast products.” Here’s where the important distinction lies: “BBS Japan owns the Motorsport department and produces all of the forged wheels for OE and the aftermarket,” he continued. “They also provide the Motorsport department with all of the aluminum forging and magnesium forgings that they need for everything that they make.”

According to Donnelly, there are no financial connections between BBS Japan (including BBS Motorsport GmbH) and BBS Autotechnik GmbH.

Even Donnelly admits that the corporate structure here is a bit confusing. BBS America, of which Donnelly is the president, is owned by the KW Automotive Group. His company is responsible for managing the NASCAR program, as the current Cup Cars run BBS single-lug wheels. Those wheels are produced by BBS Japan. BBS Motorsport GmbH—which is part of BBS Japan—also manufactures the race wheels for Formula One.

So, it’s actually just the German factory—BBS Autotechnik GmbH, which is owned by a Turkish investment firm called ISH Management Services—that’s in trouble.

“We do not know why the owners of this Turkish company decided to put the BBS cast wheel factory into insolvency,” Donnelly noted. “So far, there has not been a statement made by the owner. It seems that even the German management team of BBS was not aware of the plan to put the company back into insolvency again,” he continued.

Even in his clarification of the situation, Donnelly was sympathetic to the challenges facing BBS Autotechnik GmbH’s cast wheel operations. “Being an OE supplier of cast wheels made in Germany has been a challenge for all wheel producers in Germany, not just BBS,” he said.

Luckily, Donnelly also noted that BBS Japan (which, one more time, owns BBS Motorsport GmbH and has a working relationship with BBS America for the NASCAR program) is on much better footing. “BBS Japan and BBS Motorsport GmbH are in good standing and our business operations with them will continue uninterrupted,” said Donnelly.

And even as the cast wheel plant in Germany once again goes through restructuring efforts, Donnelly remains optimistic about the road ahead. “We are a strong brand with 54 years of experience in motorsport and high-end products. This legacy will help us navigate through the challenges faced by the cast side of the company in Germany.”