PPG Customers began receiving email notification that PPG is joining the ranks of those companies in the industry that will not be making the change to the prices under the NAGS Rebalancing, scheduled to take effect on February 28, 2005. A copy of the e-mail correspondence as issued to an AGRR/GlassBYTES reader follows. To comment on PPG's stance regarding the Rebalancing, click HERE

February 4, 2005

To: Our Valued Customers

Subject: PPG Auto Glass February 28, 2005 Pricing

In November 2004, National Auto Glass Specifications (NAGS®) announced that it was moving forward with a rebalancing of the winter U.S. benchmark price list. The effective date that change is now scheduled to occur is February 28, 2005. On that date, the NAGS benchmark list prices will be significantly reduced. PPG Auto Glass is concerned that this event will cause uncertainty and some element of business disruption throughout the industry. To that extent, PPG Industries sent a letter to NAGS to encourage them to re-consider implementation of this new methodology. To-date PPG Industries has not received a response and therefore we must assume that NAGS is moving forward with the initiative.

PPG Auto Glass is committed to doing everything possible to assist glass service providers in managing the change. PPG Auto Glass recognizes that its customers are busy responding to the NAGS rebalancing and communicating their NAGS based pricing to their respective customers. During this transition period PPG Auto Glass will strive to provide customer glass price continuity. Therefore, PPG Auto Glass will not implement the February 28, 2005, NAGS rebalanced list pricing as the basis for its customer pricing. The basis for customer prices will remain unchanged. The PPG Auto Glass current list prices and current addendum prices (Net Priced Parts), subject to additions, deletions, and price changes necessitated by new parts and cost revisions, will remain in place.

This action enables our customers to continue using the existing PPG Auto Glass pricing system to purchase their glass from PPG Auto Glass. Please continue to price PPG Auto Glass parts at the buy site (www.buyppgautoglass.com). For customers that prefer a list of parts and their respective prices for the parts, please note that customers can obtain a file of their respective pricing by contacting their PPG Auto Glass sales representative for details. When needed for reference, a copy of the PPG Auto Glass List Price & Net Price Part List can be obtained prior to February 28, 2005 at www.ppgautoglass.com or by contacting your PPG Auto Glass sales representative. Lists can be found using the following direct link:

www.ppgautoglass.com/Updates/updates.htm#Net%20Pricing%20Addendums

Please move down the page until you reach the PPG Auto Glass List Price & Net Price Part List title. Click on any one of three file types (PDF, HTML, or CSV) that are useful to you.

While we plan to minimize changes to the PPG Auto Glass prices, please note that due to changing market conditions, part additions, changes, and deletions will occur. These changes will be emailed to customers and will be available at www.ppgautoglass.com.

We look forward to your continued support and remain committed to meeting your service and quality requirements.

Best regards,

Robert Howard, VP Marketing
PPG Auto Glass