BBS Files for Bankruptcy....again
Jan 4, 2011 | 06:22 PM
#12
Thread Starter
| Teamspeed Member
Joined: Dec 2008
Posts: 114
We know the story well. Three years we made the forged wheels for the Corvette and the Viper. Huge volume, no profit. NO PROFIT! They want your very best work and want to pay nothing for it. And, if you let them, they will put you right out of business...twice! As I am sure BBS can attest.
Let the OEM's just try to replace a vendor like BBS. Nearly impossible. If they call us, we'll hang up on them.
Jan 5, 2011 | 04:25 PM
#14
TEAMSPEED.COM
Joined: Sep 2007
Posts: 1,028
This is BBS' official word, sent to us by the head of their US operations in GA last night:
Hopefully this clears things up. BBS isn't going anywhere anytime soon.
To our valued customers,
BBS has been the recognized leader in the premium wheel category for 40 plus years. As BBS of America, Inc. brings to a close the 2010 year in a much healthier manner; we are very bullish on the 2011 year with a much stronger program in all phases of the North American business.
However, some difficulties have beset our parent company, BBS International GmbH. While not posing any immediate difficulties to our North American operations, we want you to be aware of this information.
BBS International GmbH has filed for Insolvency Protection in what amounts to be a Management Reorganization (similar to our Chapter 11 protection) during a difficult period while in negotiation to sell the one high volume plant in Herbolzheim, Germany. While the sale of this plant (high volume production plant for the OE market) is pending to the Ronal organization, it put undue pressure on credit within BBS International GmbH. This filing will enable BBS International GmbH to continue to do business as usual while the Management is restructured and the sale of the Herbolzheim plant is completed. The sale of the Herbolzheim plant will allow for further investment and streamlining to be made at the Schiltach operation (BBS International GmbH headquarters). The investment in the Schiltach operation will enable BBS to re-focus on its core business of high end Aftermarket, Motorsport and Premium Original Equipment product for the worlds leading automotive manufacturers.
BBS of America, Inc. is in business and is fully operational. The plants in Germany are also fully operational and product is due to be released after this holiday period in the normal manner. The new German product that we have arriving for the spring selling season is still on plan. Our forged wheel business with our partner BBS Japan is also unaffected as we have some new offerings on the forged side of the business also arriving in the spring.
We will do all that is possible to support our customers during this time. We fully expect to continue with our aggressive business plan in 2011.
BBS has been the recognized leader in the premium wheel category for 40 plus years. As BBS of America, Inc. brings to a close the 2010 year in a much healthier manner; we are very bullish on the 2011 year with a much stronger program in all phases of the North American business.
However, some difficulties have beset our parent company, BBS International GmbH. While not posing any immediate difficulties to our North American operations, we want you to be aware of this information.
BBS International GmbH has filed for Insolvency Protection in what amounts to be a Management Reorganization (similar to our Chapter 11 protection) during a difficult period while in negotiation to sell the one high volume plant in Herbolzheim, Germany. While the sale of this plant (high volume production plant for the OE market) is pending to the Ronal organization, it put undue pressure on credit within BBS International GmbH. This filing will enable BBS International GmbH to continue to do business as usual while the Management is restructured and the sale of the Herbolzheim plant is completed. The sale of the Herbolzheim plant will allow for further investment and streamlining to be made at the Schiltach operation (BBS International GmbH headquarters). The investment in the Schiltach operation will enable BBS to re-focus on its core business of high end Aftermarket, Motorsport and Premium Original Equipment product for the worlds leading automotive manufacturers.
BBS of America, Inc. is in business and is fully operational. The plants in Germany are also fully operational and product is due to be released after this holiday period in the normal manner. The new German product that we have arriving for the spring selling season is still on plan. Our forged wheel business with our partner BBS Japan is also unaffected as we have some new offerings on the forged side of the business also arriving in the spring.
We will do all that is possible to support our customers during this time. We fully expect to continue with our aggressive business plan in 2011.
Hopefully this clears things up. BBS isn't going anywhere anytime soon.
Last edited by Damon@tirerack; Jan 5, 2011 at 04:31 PM.
Jan 6, 2011 | 10:27 AM
#17
Teamspeed Rookie
Joined: Apr 2010
Posts: 1
From: GA
Actually, BBS provides about 65% of the OE wheels for the 911's. BBS also make OE Panamera, Cayenne, Boxster and Cayman wheels. Last year Porsche gave their "Top Supplier Award" to BBS...
Fondmetal is a very good company and one of the few remaining Italian wheel producers. Last I heard from them they are not supplying OE wheels to Porsche.
Fondmetal is a very good company and one of the few remaining Italian wheel producers. Last I heard from them they are not supplying OE wheels to Porsche.
Jan 7, 2011 | 09:53 AM
#18
Teamspeed Senior Member
Joined: May 2010
Posts: 362
From: Kansas
I wonder if it's the metal workers union that's bleeding them dry? BBS should have piles of money, but if the union has a contract with onerous pension funding provisions, etc., it could siphon off profits and kill BBS. Sad, but it happens. The statement from BBS is reassuring, though. 
Last edited by slik560; Jan 7, 2011 at 09:55 AM.
