After nearly four decades of turning heads with aggressive styling upgrades and motorsport-inspired performance tweaks, AC Schnitzer is set to shut its doors by the end of 2026. The decision comes from its parent company, the Kohl Group, bringing an end to one of the most recognisable BMW tuning names in the world.
In an official statement, the Kohl Group made it clear that the business simply no longer makes financial sense to continue. Rainer Vogel, Managing Director of the group, pointed to rising development and production costs as a major pressure point. On top of that, the lengthy and often complex German approval processes for aftermarket components have left the company at a disadvantage compared to rivals operating outside of Germany.
AC Schnitzer built its reputation on more than just road cars. Over the years, the brand had a strong presence in touring car racing and rally competition, while also developing a wide range of upgrade packages for BMW models. Its reach extended to MINI products and even the latest Toyota Supra, thanks to its close ties with the BMW Z4 platform. Its motorsport arm, Schnitzer Motorsport, officially stepped away from racing activities back in 2021.
Vogel also touched on a more subtle but equally important issue. The brand has struggled to connect with a younger audience in the same way it once did. Enthusiasts who grew up idolising modified BMWs are no longer being replaced at the same rate by a new generation of customers drawn to the same idea of performance tuning.
Market changes have only made things tougher. The steady move toward electric vehicles has reduced the pool of combustion-powered cars that tuning companies traditionally rely on. Shifts in buyer behaviour, along with added pressure from tariffs in key markets like the United States, have further tightened the screws.
Despite the closure plans, this is not necessarily the end of the AC Schnitzer name. The Kohl Group has confirmed it is actively engaging with interested parties who may want to acquire the brand. For existing customers, there is some reassurance, as warranties and after-sales support will continue to be honoured beyond 2026.