Guardian to Cease Operations of Auto &
Truck Glass Inc.
April 8, 2011
Guardian Automotive announced today that it is ceasing operations
of Auto &Truck Glass Inc. (ATG), which provides auto glass replacement
and repair services primarily to rental fleets and auctions. Guardian's
principal automotive operations (original equipment automotive glass,
aftermarket, and retail replacement businesses) are not affected,
according to a company
"Guardian is all about maximizing business opportunities for
the benefit of our customers as well as achieving profitable growth
for our company. As is well known, customers continue to consolidate
-- and excess capacity in this segment is the rule of the day,"
says Mike Morrison, president of Guardian Automotive. "Furthermore,
competitive pressures in certain parts of the auto glass business
have driven prices below a breakeven point, an untenable and unsustainable
way to do business at Guardian. So we made the prudent and proactive
business decision to improve our competitiveness in this segment.
We will continue to serve the auto glass replacement industry through
our Guardian Auto Glass facilities throughout the country."
With regard to ATG's fleet contracts, Guardian spokesperson Earnest
Thompson advised "no contracts are being transferred from one
entity to another."
"We'll be exploring the business case for each relationship
based on its own merits," he adds.
When asked if there are further changes planned, and if new Guardian
locations will be added as a result of the ATG closure, Thompson
advised, "We continue to assess new regions for Guardian Auto
Glass locations but such decisions will be based on, again, the
business opportunity for a particular region rather than factors
such as the ATG divestiture."
Thompson declined to comment on how ATG's management would be impacted.
"Employees are being evaluated for their interest in and potential
fit elsewhere within the Guardian Automotive family," says
Thompson. "We are not ready to discuss specific individuals
at this time."
ATG has 26 locations and 48 full-time employees in the United States.
The corporate office is located in Mission Viejo, Calif. The company
was founded in 1990.
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