PPG Sells Off OEM Auto Glass Business Unit

[chml17l]

PPG is selling off their OEM automotive glass business due to it being in the red for the last several years. They attribute this to relatively soft US car sales and lack of market growth.

"PPG announced that it has reached an agreement with Platinum Equity of Beverly Hills, Calif., under which the company would divest its automotive original equipment manufacture (OEM) glass and automotive replacement glass (ARG) and services businesses for approximately $500 million. Under the terms of the agreement, an affiliate of Platinum Equity will acquire the businesses’ assets."

[TortoiseAWD]

Hmm. I wonder what that means for the future of Aquapel . . .

Tort

[Setec Astronomy]

Another stupid MBA CEO decision. "Gee, our sales are down, time to cash out!" I guarantee this will mean that our Ford, Chrysler, GM, and domestic Jap cars will start to say "Made In China" on the windshields before too long.

EDIT: I bet the PPG executives get a big bonus for selling off one of their company's core competencies. Maybe if they sell off everything they are good at, they will get a bigger bonus for destroying the company! Not that I'm bitter or anything

[chml17l]

Originally Posted by TortoiseAWD

Hmm. I wonder what that means for the future of Aquapel . . .

Tort

Tort-- I believe Aquapel is safe since it is manufactured by PPG's consumer specialty chemicals division and not the auto glass business unit per se.

[chml17l]

Setec-- The "declining sales" was a poor word choice on my part. I should have actually said that PPG's auto glass business unit has been in the red for several years. I will edit my original post.

Supposedly, PPG's strategy is to now focus on coatings and speciality chemicals and to "reduce PPG’s exposure to the U.S. automotive market." That last quote is a direct comment from their CEO. They have been buying up any and every paint maker the last few years and also many foreign companies lately.

I too would prefer that they not screw up the company since I am currently employed there...

[TortoiseAWD]

Originally Posted by chml17l

Tort-- I believe Aquapel is safe since it is manufactured by PPG's consumer specialty chemicals division and not the auto glass business unit per se.

Cool. Aquapel is good stuff; I'd hate to see it disappear because some bean counters decided to reorganize the biz.

Tort

[the other pc]

Good thing they're keeping their other glazing businesses. Otherwise, they'd have to change their name to PP industries.


PC.

[chml17l]

Yes, it is very ironic that their original name was based upon the plate glass industry. PPG Industries was originally founded in 1883 as the Pittsburgh Plate Glass Co. It was much later that they changed their name to reflect their other diversified business entities. Even with the corporate name change many people still continue to associate them with their old plate glass name.

[erics00ls]

There's always Pilkington.. Maserati uses them. My bonneville has a pilkington windshield.. GM Soft-ray safety flo lite on all other 9 windows, though