Glass Industry Biz News 

May 2000

From Business Wire:

Pep Boys and Safelite AutoGlass, America's largest auto glass service company, announced that as a result of the success that was achieved during a six-month, 22-store test in Atlanta, the two companies have established a national relationship.

Under the terms of the cross-licensing agreement, Pep Boys and Safelite will promote co-branded automobile glass replacement and repair services on a national basis. With Safelite's fleet of 3,200 mobile vans and Pep Boys' network of 663 stores, consumers will enjoy the ease of having these services performed at their home, at work, or at one of Pep Boys' conveniently located Supercenters.

In addition, Pep Boys will serve as a preferred provider of fleet maintenance and repair services for Safelite's huge fleet. As one of the nation's largest service providers for commercial fleets, Pep Boys will further leverage its non-franchised network of 6,904 service bays across the country.

Safelite's CEO, John Barlow, made the following comment:

"By utilizing Pep Boys' network of Supercenter locations, Safelite will be able to service our customers in a fashion that's more convenient for them and more efficient for us. Safelite and Pep Boys share the same high standards for customer service, and the same desire to make auto glass repair and replacement as "hassle-free" as possible for the American driving public."

From Business First, Columbus
Doug Buchanan

Safelite Glass Corp. will promote windshield repair at Pep Boys service centers under a new cross-licensing deal.

Columbus-based Safelite and Pep Boys -- Manny, Moe & Jack of Philadelphia have agreed on a nationwide deal following a six-month trial run in Atlanta.

The agreement allows Safelite to promote its auto glass repair and replacement services to Pep Boys' customers, while making Pep Boys more of a full-service operation.

Safelite marketing manager Dee Uttermohlen said the deal effectively adds Pep Boys' 663 service centers in 37 states to Safelite's 500-store network.

"This gives the consumer another place to have the work done since Pep Boys will allow us to do work in their bays," she said. "While a lot of people prefer to have mobile work done, Columbus weather doesn't always make that possible."

Safelite has two Columbus stores, while Pep Boys has service centers on South Hamilton Road, Morse Road and West Broad Street.

Under the affiliation, Safelite will install phones hooked to its call centers at Pep Boys so customers can schedule repairs directly.

Terms of the deal weren't disclosed, but Uttermohlen said referrals from Pep Boys' mechanics should promote more sales to the legions of drivers who ignore windshield chips, even though most insurance companies waive the repair deductible to prevent having to replace entire windshields.

"There's a portion of the population that needs auto glass work who we call `do nothing' customers," she said. "They're not willing to call their insurance company because it's not something they're overly concerned about. This is a way to have that called to their attention and get them to at least pick up the phone. Then we can move forward in helping them get it fixed."

Safelite in March had to renegotiate its debt with its lenders after losing $27.4 million in the quarter ended Jan. 1.