Carglass gets rid of Belgian body shop activity
Automotive glass repair specialist Belron, the parent company of Carglass, sells its body shop activity in Belgium. It has been determined that auto body repair isn’t scalable internationally. Carglass Carrosserie will be sold to Dutch investment firm Standard Investment.
Back in December 2016, the then CEO of D’Ieteren, Axel Miller, wanted to expand the success of Berlon’s glass repair activity to other automotive activities, such as body repairs. However, both sectors weren’t yet consolidated, and insurance companies could get on board with the idea.
Since its inception, Carglass Carrosserie spread to 17 centers in Belgium and now employs 461 workers. However, despite the former CEO’s belief, Belron is getting rid of it. According to Carglass’s parent company, a strategic review determined that the auto body business wasn’t scalable to international levels.
Belron further explains that local differences and the high number of car parts limit economies of scale and bring complexity. The glass repair specialist is, therefore, recentring its activity on what it knows best.
It sells Carglass Carrosserie to the Dutch investment company Standard Investment. For its part, Belron, which is owned at 54,8% by Belgian D’Ieteren, will remain the world’s leader in automotive glass repairs, active in 39 countries through more than ten subsidiaries.