Jim's recent thread got me thinking, scary I know!!

What if Belron is simply buying ONLY the retail side of SGC. SGC knows we all squak about their conflict of interest(not that they care what we think) and laws are being drafted to not allow them to manufacture glass, process glass claims AND install glass, so they need a way out potentially. The single biggest liability risk to them is the retail side correct?

What if they simply became like PPG, only a manufacturer and network?

They make a deal to sell their retail glass division to Belron(one reason I think the banks seperated SGC was to be able to easily sell off pieces of the company if needed). Belron agrees to help SGC meet its current insurance contracts for the next 'X' amount of years, agrees to buy 'X' amount of SGC glass for those 'X' amount of years, and SGC agrees to "refer" as much work to the new Belron retail outlets as possible for next 'X' amount of years.

Why would this NOT work?

That would be nice just sell the retail, and open SGC up to all :)

Lest we all forget, Wes Topping is now the big cheese at Belron and he built Windshields America that merged with USA Glass to become VISTAR (and gain direct access to the Allstate work). Belron invested in VISTAR which led to their involvement with Safelite when they merged. We all know how that played out when Belron bolted the game.

It makes sense that Mr. Topping is a key component to whether Belron remarries SL and what the offspring looks like. There has to be a quick return like access to Farmers, Nationwide, USAA, Geico, etc. and buying the retail arm alone won't get this. They need the network.

Exactly the point. Belron wants the volume, and safelite needs to move glass and meet contracts they have with ins. co. but...

....If glass associations are getting smart and laws are being passed not allowing a single company to be involved in retail and claims processing, then belron would need SGC network, and SGC network would still need Belron.

If they both know they can't have a retail side and a network side, then they would work together while remaining seperate.

Just thinking out loud today, which probably isn't that smart to do

Well, CCC, to your first post, so long as we're 'thinking out loud'.....

If SGC sells only the fullfillment side, then it still works IF Belron learns to say "NO", does it not?

Second, if Belron and the insurers and Safelite all party to contracts when the insurers aren't even contracting repairs with them in the first place, and consumers are 'steered' because of these supposed contracts....isn't there a legal word for that?

I think there's been a legal word for that all along....but that's just my opinion.

Personally I don't believe Safelite has the manufacturing capability to supply a national chain. They make no tempered and they have already started outsourcing w/s from China. I think if Belron wants anything it is the network.

The retail side of Safelite is losing big monies. I believe the only reason they have hung on this long is their TPA is making money, but not enough. They're cutting their discounts to the bone in hope of keeping as much work in house as they can. A hope this purchase will be good for the industry. Who's next? Diamond?

NOBODY SELLS A GOOD PROFITABLE BUSINESS....IT SEEMS THAT THE FINANCIAL GURUS THAT HOLD THE PAPER WILL SELL OFF AT A BARGAIN PRICE TO ANYBODY WITH SUBSTANCE....GET IN LINE.... BELRON/PPG/,ETC

I read as far as "eye's wide open" and stopped in my tracks.

(Well, my peepers did. I managed to take a sip of beer while mulling his salient comment so the rest of me was still ambulatory.)

His eyes were sure wide open in this regard.

Let me pose a question. Who out there would give a second thought to buying "Self-light" by itself without the associated network or some direct or indirect connection between the network itself and the purchaser?

As far as laws restricting the vertical acquisition of manufacturing, retailing and networks insofar as our business is concerned, fuggit it! If it ever happens on a fifty state basis it is so far in the future that even the youngest among us will either find ourselves picking gray hairs off our shoulders or dropping our choppers in a glass of water along with some clorinated fizz tablet when we hit the sack.

Dream on in that regard.

What if they are after the Service AutoGlass dist network to supply and service themselves. That would change the AG landscape. It would lend to a complete package.

I think Belron started paving the exit ramp right to the edge of the cliff for Safelite when they took over Safelite manufacturings biggest customer(USAG). You know how long it takes to finish highway improvements. I'm sure they could care less about anybody else involved in the installation of auto glass. I just hope they make better decisions for the industry as a whole.