AC Schnitzer: 'Domestic market has collapsed'

Parent company is parting ways with brand, blaming everything from tariffs to an uninspired younger generation

While this is patently a challenging time for OEMs (to put it mildly), the predicament is equally unfavourable for the aftermarket. Folk have less money than ever to spend on cars, so modifications fall further down the list of priorities. And when you consider that new cars are more capable and more complicated than ever, that tends to make upgrades both harder to create and then harder to justify for the customer. Furthermore, even those who do want to take the plunge on modifying, now have an unprecedented amount of choice from the manufacturer, either when ordering or post-registration. We now live in a world where M2 customers can order their car with a wild M Performance Track Kit.

So perhaps it should come as little surprise that AC Schnitzer, previously a giant of the German aftermarket scene, is being offered up for sale by its parent company Kohl Group. This will happen at the end of 2026, as the latter ‘will focus more than ever on the retail and service of vehicles and motorcycles.’ While it is guaranteeing warranty support for the Schnitzer wheels, engine tunes, aero parts and suspension upgrades after the end of this year, don’t expect much new to be announced during 2026. If a buyer cannot be found, this is it for AC Schnitzer after decades in the game, just a few years after Schnitzer Motorsport - serial touring car winners - were wound up in 2021, and with the UK distributor Rossiters having ceased trading in 2024. Losing Alpina (as it’s been known for so long, at least) one year and the Schnitzer the year after really would be a big blow to BMW fans.

The press release is pretty forlorn, even in the circumstances. As well as the things we’ve come to expect from car companies experiencing a downturn of late - cost of materials, tariffs, a general post-Covid slump - Schnitzer suggests that simply being in BMW’s homeland is holding it back. It points to an ‘extremely long approval process for parts in the German system’ that has caused it to fall behind its competition based elsewhere. Once upon a time, that wouldn’t have been such an issue, with cars and upgrades featured in print magazines that by their nature take a little while to create; in a world of globalised social media, however, being first to the punch on more power, more speed, and more clout is absolutely critical. And Schnitzer has been losing out. “If we can only bring aftermarket parts to market eight or nine months after the competition, that speaks for itself,” said Rainer Vogel, Managing Director of AC Schnitzer.

There are cultural shifts to consider as well, some of which will have affected Alpina also. Even with a wider resurgence of late, the combustion engine is in decline, with fewer new cars to fettle in the familiar way. Those that do exist are sullied by filters, with any changes harder to execute than ever. And everything is more expensive, of course. When BMW launched the now-legendary 3.0-litre B58 engine in 2015, a 340i with that engine cost £38,125; these days, an M340i is £62,425. You’re surely much more likely to contemplate an ECU boost and naughty exhaust on something that’s less than £40k (or depreciated from there after a couple of years) than one that starts at almost £25,000 more.

Interestingly, Schnitzer points to a change in attitude towards car modifying as a reason for the recent decline. ‘It is also true that buyers of vehicle enhancements through aftermarket parts are often portrayed in the media as eccentrics or posers’ is not a line we ever expected to see in a press release. While it’s true to say that a BMW modified in Aachen is a very different proposition to one with an Alpina badge, it’s easy to see where they’re coming from. The way we buy and use cars has changed, and so has our approach to upgrades; typically anything modified, if modified at all, tends to be a bit subtler than it once would have been, even if shows remain well attended. Stickers and 21-inch wheels on a Supra maybe feel a bit old hat now. Perhaps it could be argued that Schnitzer hasn’t evolved with the times as it’s needed to; on the other hand, it’s been pretty hard to predict demand, supply and eligibility of anything automotive recently.

In another fairly frank admission, Vogel added: “It is certainly also true that we - like other tuning companies - have not succeeded in inspiring young customers to enjoy sporty driving with our brand to the same extent as their fathers’ generation did.” Which, actually, feels a bit unfair on Schnitzer and similar outfits; from our experience, the enthusiasm and interest are much as they ever were, but everyone now seems to live busier lives with less disposable income and free time. With cars of any type more expensive to buy and harder to get hold of than ever, so the passion has evolved. Imagine, say, finding a Schnitzer E36 and attempting to restore it now against 20 years ago - the cost of everything would be incomparable.

It’s a crying shame, of course, given the history associated with the Schnitzer brand and the success it has achieved; this is not a situation that makes anyone happy, or could have been envisioned until fairly recently. Summed up neatly by Rainer, who sounds like a pretty sound bloke: “Making a rational decision regarding a business segment that is so emotionally charged is not easy. But as a family-owned business, we always think in terms of the entire Kohl Group and its stable future.” Sadly, BMW tuning isn’t the business opportunity it once was. Nine months to go for a buyer to be found.

OP Posts Only

Prev 2 3 Next

OP Posts Only

Author

Discussion

fantheman80

Original Poster

2,408 posts

72 months