Coatings World - March 2011

Red Spot

From an interior standpoint, Red Spot sees continued, added emphasis on using coatings to add richness, luxury, feel and design elements to the car. “As the major automotive magazines continue to report, consumers don’t like cheap plastic,” Red Spot said. “Today’s high performance, low and high gloss coatings, along with design elements such as graining and texturing, allow OEMs to turn cheap plastic into rich, luxurious parts, offering a final interior that is greater than the sum of its parts.

named Brazil, Russia, India and China the BRIC, and feel this region will experience the greatest automotive growth in the next 20 years.

Red Spot: Remember that automotive coatings serve a dual purpose—performance and decoration. Anything exposed to the sun’s ultraviolet rays for a lengthy period of time has to be able to withstand the very negative effects—fading, drying out, cracking, yellowing, etc.—caused by UV exposure. Additionally, the OEMs continually change their specifications to meet real world changes in how consumers use their vehicles. For instance, interior coatings that withstand the harsh chemicals found in suntan lotions, bug sprays and air fresheners have been developed.

The OEMs would like to reduce their reliance on coatings from a cost standpoint. From a practical standpoint, this will be very difficult, in terms of performance and decoration. Vehicles molded in color, which would eliminate the need for coatings, does not offer the performance or decoration consumers are accustomed to.

Mid- and long-term, we see the coatings market growing. In the emerging markets, “starter cars,” which are very low cost vehicles that are also low on features are growing in popularity. If no one in your family has ever owned a car, and you finally buy your first one, you don’t care if the instrument panel is painted a rich low gloss black with contrasting bright silver accents.

But, your goal may be to eventually move up to a higher level car with a look you can be proud of. Today, and probably to-morrow, that look will require coatings.

CW: What are the key trends and challenges manufacturers of
automotive OEM coatings face now and in the years ahead?
CW: What can we expect moving through the next few quarters?
Describe your company’s strategy for navigating these turbulent
times and what is your prediction for the outcome of 2011 in
terms of auto paint sales?

Red Spot: Never has innovation been more important in the automotive marketplace. In order to differentiate vehicles, OEM’s are looking to interior styling to set their cars apart

Red Spot: We are optimistic regarding the short-term and long-term future. Like everyone else, we rely on the top global analysts for predictions of future car sales and growth, as this is their full time business. Like all companies that survived the 2008/2009 automotive melt down, with sales/production reduced by 50 percent, we have reduced our breakeven point, watch our cash very closely, and manage our cost growth. It is a double-edged sword. A company must invest in its future to have a future, but at the same time, it has to win today’s battles to be around to fight tomorrow’s battles.