BMW owners who are looking to modify their cars will probably be familiar with AC Schnitzer. Based in Aachen, Germany and founded in 1987 by Willi Kohl and Herbert Schnitzer, the German tuning company offers upgrades for BMW as well as MINI vehicles, even offering fully built cars such as the ACS3 Sport (based on the E30 M3) and V8 Roadster (based on the E36 Z3).
Being a household name for nearly 40 years is no mean feat, but it looks like the challenges have caught up to AC Schnitzer, as the company has announced that it will be shutting down operations at the end of 2026.
In a press release, it was announced that parent company Kohl Group will be parting ways with its AC Schnitzer division and cease its operations as a manufacturer of tuning parts for BMW and MINI. “Rising development and production costs, as well as lengthy approval procedures within the German system, have increasingly put AC Schnitzer at a disadvantage compared to international competitors,” Rainer Vogel, managing director of Kohl Group, wrote in the release.
“If we bring aftermarket parts to market eight or nine months after the competition, that speaks for itself,” he continued, adding that changing consumer behaviour, difficult international market conditions as well as the gradual decline of the internal combustion engine are weighing on the business.
Other factors mentioned include tariffs in the key United States market, rising raw material prices, volatile exchange rates, supplier issues and persistent consumer reluctance amid a weakening global economy. The company also noted that the tuning industry has been “increasingly unable to inspire young customers to embrace sporty driving.”
While AC Schnitzer will cease operations, the name won’t be erased entirely because the Kohl Group says it is in talks with interested parties about taking over the brand. This is as the brand custodian looks to focus fully on its core business, which involves vehicle and motorcycle sales and service. For now, existing AC Schnitzer inventory will be sold off by the end of year, so customers can still get their hands on tuning parts that will come with warranties and aftersales support beyond 2026.
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