Wheel maker BBS in brand rights dispute with former owner

A set-to is brewing in Germany’s Black Forest. As our German sister site Reifenpresse.de reports, the new owner of wheel manufacturer BBS, Turkey’s ISH Holding, can’t sell and distribute wheels for aftermarket customers. Brand rights appear to lie at the heart of the matter, and although neither former owner Klaus Wohlfarth (KW Automotive) nor the Turkish investor have officially commented, Reifenpresse.de notes that the rumour mill has been churning for weeks. The company’s works council has now spoken out, making an appeal to the previous owner.

BBS Autotechnik GmbH, which operates two plants in Germany, filed for insolvency in September 2023. ISH Holding subsidiary ISH ManagementServices GmbH took over the company in December. But since then, differences in opinion over the brand’s future have hindered it from distributing BBS aftermarket rims.

Realignment plans

ISH announced the realignment of the acquired company in January 2024, and the assumption was the retention of all jobs at the two plants in Schiltach and Herbolzheim, in Germany’s Black Forest. After all, demand for BBS products remains strong, and prior to its insolvency the company entered into a cooperative technology agreement that would reduce wheel weight and thus raw materials. But a letter from the works council at BBS Autotechnik GmbH indicates that not everyone is on board with these plans.

“Unfortunately, the original promise not to stand in the way of a complete solution for the then insolvent BBS and thus to protect jobs in Schiltach was not honoured by the KW management. We recently discovered that KW managing director Klaus Wohlfarth transferred the brand rights to himself just a few months after the takeover. It seems that he wanted to separate the BBS brand from its roots in Schiltach right from the start,” writes works council chairman, Martin Brohammer. “Klaus Wohlfarth still sees himself as part of BBS, even though his concept almost caused the loss of all jobs and led to insolvency.”

Outsourced BBS rims?

According to market sources, KW Automotive still stores existing stocks of aftermarket BBS wheels and is distributing these to aftermarket customers. The rumour also exists that KW wants to procure wheels cheaply from low-wage countries and sell them under the BBS brand.

“This is unthinkable for us employees and the new owner,” comments Martin Brohammer. “Many of the employees have been working for the company for over 30 years and carry the brand in their hearts. BBS wheels will continue to be produced only in Schiltach.”

The works council is therefore appealing to the former shareholder KW Automotive to transfer the brand rights as quickly as possible so that BBS Autotechnik GmbH can act independently again. Company managing director Jürgen Klingelmeyer is confident about reaching an agreement: “None of the parties involved want to destroy the BBS brand. It has never made much money. It’s more about the emotions associated with the brand.” The managing director adds that he sees no market for BBS rim manufactured elsewhere, away from the specialised machinery and experienced workforce in the Black Forest.