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The Automotive Coatings Market: Going Global

As auto manufacturers expand their businesses globally, so too are coatings manufacturers. No matter the size of the coatings firm, every R&D department is developing new technologies to answer the needs of car manufacturers that demand better systems at

Christine Esposito08.09.05

Leaders in the market are merging, creating manufacturing empires. Companies are opening new plants or expanding their facilities in regions that hold potential. Question: Do the previous statements describe car manufacturers or paint suppliers? Answer: Both. The big keep getting bigger-and more global-in the automotive business. Daimler-Benz joined forces with Chrysler, creating a worldwide automobile manufacturing empire. More recently, Ford announced plans to acquire Volvo for $6.45 million. Many automotive manufacturers are opening plants or expanding their facilities in growing markets such as South America. Judging by recent announcements, it appears that automotive coatings manufacturers are playing follow the leader. A New Giant The big news in the automotive coatings market in 1998 was undoubtedly DuPont's decision to acquire Herberts, the automotive coatings division of Hoechst AG. The accord was first announced in October, 1998, and was finalized just last month. The combined business-known as DuPont Performance Coatings-is now the largest automotive coatings supplier in the world with sales of more than $3.8 billion.

DuPont targeted Herberts becaus