UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

         [X]      Quarterly  Report  Pursuant  to  Section  13 or  15(d)  of the
                  Securities Exchange Act of 1934 For the quarterly period ended
                  June 30, 1999

         [ ]      Transition  Report  Pursuant  to  Section 13  or 15(d) of  the
                  Securities Exchange Act of 1934 For the transition period from
                  ____________ to ___________


                         Commission file number 0-22580


                           JPE, Inc. (d/b/a ASCET INC)
             (Exact name of registrant as specified in its charter)


                                    Michigan
         (State or other jurisdiction of incorporation or organization)


                                   38-2958730
                      (I.R.S. Employer Identification No.)


         30400 Telegraph Road, Suite 401, Bingham Farms, Michigan, 48025
               (Address of principal executive offices) (Zip Code)


                                 (248) 723-5531
              (Registrant's telephone number, including area code)


                                 Not Applicable
              (Former name, former address and former fiscal year,
                         if changed, since last report)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes X  No

As of July 31, 1999,  there were 14,043,600  shares of the  registrant's  common
stock  outstanding.  This Quarterly  Report  on  Form 10-Q contains 42 pages, of
which this is page 1.



<PAGE>


                           JPE, INC. (d/b/a ASCET INC)

                                      INDEX


                                                                            Page
                                                                            ----
Part I.    Financial Information

           Item 1.    Financial Statements
                      Consolidated Condensed Balance Sheets (Unaudited)        4
                      -    At June 30, 1999 and 1998
                      -    At December 31, 1998

                      Consolidated Condensed Statements of Operations
                        and Comprehensive Operations (Unaudited)
                      -      For the  Predecessor  Company  for the
                             Period  From  April 1, 1999  Through
                             May 27, 1999 and for ASCET INC for the
                             Period From May 28, 1999  Through
                             June 30, 1999 and for the Predecessor
                             Company for the Three Months Ended
                             June 30, 1998                                     5
                      -      For the Predecessor Company for the
                             Period  From  January 1, 1999 Through
                             May 27, 1999 and for ASCET INC for the
                             Period From May 28, 1999 Through
                             June 30, 1999 and for the Predecessor
                             Company for the Six Months Ended
                             June 30, 1998                                     6

                      Consolidated Condensed Statements of
                        Shareholders' Equity (Unaudited)                       7
                      -      For the Six Months Ended
                             June 30, 1999

                      Consolidated Condensed Statements of
                        Cash Flows (Unaudited)                                 8
                      -      For the Predecessor Company for the
                             Period January 1, 1999 Through May 27,
                             1999 and for ASCET INC for the Period
                             May 28, 1999  Through June 30, 1999
                             and for the Predecessor Company for
                             the Six Months Ended June 30, 1998

                      Notes to Unaudited Consolidated
                        Financial Statements
                           9-16




           Item 2.    Management's Discussion and Analysis
                        of Financial Condition and Results
                        of Operations                                      17-24


Part II.   Other Information

           Item 2.    Changes in Securities and Use of Proceeds               25

           Item 5.    Other Information                                       25

           Item 6.   Exhibits and Reports on Form 8-K                      26-27

           Signature                                                          28



<PAGE>



                          PART I. FINANCIAL INFORMATION

Item 1.   Financial Statements

                           JPE, INC. (d/b/a ASCET INC)
<TABLE>
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                    (Amounts in Thousands, Except Share Data)
<CAPTION>
                                                                             At June 30,             At Dec. 31,
                                                                         1999            1998            1998
                                                                         ----            ----            ----
                                                                             (Unaudited)               (Note A)
<S>                                                                   <C>             <C>              <C>
ASSETS
Current assets:
     Cash and cash equivalents                                       $  2,034        $    493          $    394
     Accounts receivables trade, net                                   21,885          36,219            12,151
     Inventory, net                                                    20,085          36,338            18,572
     Other current assets                                               5,515           7,923             1,413
                                                                     --------        --------          --------

                  Total current assets                                 49,519          80,973            32,530

Investment in affiliated companies                                         --              --            14,661
Property, plant and equipment, net                                     30,177          69,888            20,963
Goodwill, net                                                           2,325          30,770             7,458
Other assets                                                              638             790             1,362
                                                                     --------        --------          --------

                  Total assets                                       $ 82,659        $182,421          $ 76,974
                                                                     ========        ========          ========

         LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
     Short-term debt and current
       portion of long-term debt                                     $ 48,596        $124,437          $ 84,492
     Accounts payable trade                                             7,527          22,694             8,273
     Accrued liabilities and other
         current liabilities                                            4,968           7,012             2,580
                                                                     --------        --------          --------

                  Total current liabilities                            61,091         154,143            95,345

Deferred income taxes and other liabilities                             1,519           5,080             1,720
Long-term debt, non-current                                               320             517                50
                                                                     --------        --------          --------

                  Total liabilities                                    62,930         159,740            97,115
                                                                     --------        --------          --------

Shareholders' equity:
     Warrants                                                             293              --                --
     First Series Preferred Shares, no par value,
         3,000,000  authorized,  1,973,002 shares
         issued and outstanding at June 30, 1999
         and no shares issued and outstanding
         at June 30, 1998                                              16,590              --                --
     Common stock, no par value, 15,000,000
         authorized, 14,043,600 shares issued and
         outstanding at June 30, 1999 and 4,602,180
         issued and outstanding at June 30, 1998                        2,333          28,051            28,051
             Accumulated other comprehensive loss                          --            (380)             (336)
             Retained earnings (accumulated deficit)                      513          (4,990)          (47,856)
                                                                     --------        --------          --------

                         Total shareholders' equity (deficit)          19,729          22,681          ( 20,141)
                                                                     --------        --------          --------

                  Total liabilities and shareholders' equity         $ 82,659        $182,421          $ 76,974
                                                                     ========        ========          ========
</TABLE>

                   The accompanying notes are an integral part
               of the consolidated condensed financial statements.


<PAGE>


                           JPE, INC. (d/b/a ASCET INC)
<TABLE>
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                          AND COMPREHENSIVE OPERATIONS
                For the Three Months Ended June 30, 1999 and 1998
                  (Amounts in Thousands, Except Per Share Data)
                                   (Unaudited)
<CAPTION>
                                                                  Predecessor                                    Predecessor
                                                                    Company                 ASCET INC              Company
                                                                  Period From              Period From           Three Months
                                                                 April 1, 1999             May 28, 1999             Ended
                                                                Through May 27,          Through June 30,          June 30,
                                                                       1999                   1999                   1998
                                                                       ----                   ----                   ----
<S>                                                                   <C>                    <C>                   <C>

Net sales                                                             $ 9,738                $ 14,013              $ 56,659
Cost of goods sold                                                      7,524                  11,021                49,512
                                                                      -------                --------              --------

Gross profit                                                            2,214                   2,992                 7,147
Selling, general and administrative expenses                            1,992                   1,786                 6,753
Other expense                                                             492                      --                 3,083
Affiliate companies' (income) loss                                     (3,893)                     --                    --
Interest expense, net                                                   1,055                     384                 3,083
                                                                      -------                --------              --------

Income (loss) from continuing operations before
     income taxes and extraordinary item                                2,568                     822                (5,772)
Income tax expense                                                         33                     309                 1,693
                                                                      -------               ---------              --------

Income (loss) from continuing operations
     before extraordinary item                                          2,535                     513                (7,465)
Discontinued Operation:
     Income from operations of IAF                                         --                      --                    29
Extraordinary Item:
     Forgiveness of debt                                               16,257                      --                    --
                                                                      -------               ---------              --------

Net income (loss)                                                      18,792                     513                (7,436)
Other comprehensive expense:
     Foreign currency translation adjustment                               --                      --                   (90)
                                                                      -------               ---------              --------

Comprehensive income (loss)                                           $18,792               $     513              $ (7,526)
                                                                      =======               =========              ========

Basic earnings (loss)
  per share from continuing
  operations before
  extraordinary item:
         Common Shares                                                  $0.55                   $0.00               $ (1.62)
                                                                        =====                   =====               =======
         First Series Preferred Shares                                  $  --                   $0.23            $       --
                                                                        =====                   =====            ==========
Earnings (loss) per share
  from continuing  operations before
  extraordinary item
  assuming dilution:
         Common Shares                                                  $0.55                   $0.00               $ (1.62)
                                                                        =====                   =====               =======
         First Series Preferred Shares                                  $  --                   $0.20               $    --
                                                                        =====                   =====               =======
Basic earnings (loss) per share:
         Common Shares                                                  $4.08                   $0.00               $ (1.62)
                                                                        =====                   =====               =======
         First Series Preferred Shares                                  $  --                   $0.23               $    --
                                                                        =====                   =====               =======
Earnings (loss) per share assuming dilution:
         Common Shares                                                  $4.05                   $0.00               $ (1.62)
                                                                        =====                   =====               =======
         First Series Preferred Shares                                  $  --                   $0.20               $    --
                                                                        =====                   =====               =======
</TABLE>
                   The accompanying notes are an integral part
               of the consolidated condensed financial statements.


<PAGE>
                           JPE, INC. (d/b/a ASCET INC)
<TABLE>
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                          AND COMPREHENSIVE OPERATIONS
                 For the Six Months Ended June 30, 1999 and 1998
                  (Amounts in Thousands, Except Per Share Data)
                                   (Unaudited)

                                                                   Predecessor                                   Predecessor
                                                                     Company              ASCET INC                Company
                                                                   Period From           Period From              Six Months
                                                                 January 1, 1999         May 28, 1999                Ended
                                                                 Through May 27,       Through June 30,            June 30,
                                                                       1999                 1999                     1998
                                                                       ----                 ----                     ----
<S>                                                                  <C>                     <C>                   <C>
Net sales                                                            $ 23,897                $ 14,013              $116,013
Cost of goods sold                                                     17,839                  11,021               103,953
                                                                     --------                --------              --------

Gross profit                                                            6,058                   2,992                12,060
Selling, general and administrative expenses                            5,244                   1,786                13,844
Other expense                                                             750                      --                 2,948
Affiliate companies' (income) loss                                     (7,611)                     --                    --
Interest expense, net                                                   2,703                     384                 6,080
                                                                     --------                --------               -------

Income (loss) from continuing operations before
     income taxes and extraordinary items                               4,972                     822               (10,812)
Income tax expense                                                        104                     309                   126
                                                                     --------                --------              --------

Income (loss) from continuing operations
     before extraordinary items                                         4,868                     513               (10,938)
Discontinued Operation:
     Income from operations of IAF                                         58                      --                   234
     Loss on sale of IAF, net of
       operating income of $1,670                                      (2,321)                     --                    --
Extraordinary Items:-
     Forgiveness of debt and liabilities                               18,272                      --                    --
                                                                     --------                --------              --------

Net income (loss)                                                      20,877                     513               (10,704)
Other comprehensive expense:
     Foreign currency translation adjustment                               --                      --                  (109)
                                                                     --------                --------              --------

Comprehensive income (loss)                                          $ 20,877                $    513              $(10,813)
                                                                     ========                ========              ========

Basic earnings (loss) per share
  from continuing operations before
  extraordinary items:
         Common Shares                                                  $1.06                   $0.00                $(2.33)
                                                                        =====                   =====                ======
         First Series Preferred Shares                                  $  --                   $0.23                $   --
                                                                        =====                   =====                ======
Earnings (loss) per share from
  continuing  operations before
  extraordinary items
  assuming dilution:
         Common Shares                                                  $1.04                   $0.00                $(2.33)
                                                                        =====                   =====                ======
         First Series Preferred Shares                                  $  --                   $0.20                $   --
                                                                        =====                   =====                ======
Basic earnings (loss) per share:
         Common Shares                                                  $4.54                   $0.00                $(2.33)
                                                                        =====                   =====                ======
         First Series Preferred Shares                                  $  --                   $0.23                $   --
                                                                        =====                   =====                ======
Earnings (loss) per share assuming dilution:
         Common Shares                                                  $4.29                   $0.00                $(2.33)
                                                                        =====                   =====                ======
         First Series Preferred Shares                                  $  --                   $0.20                $   --
                                                                        =====                   =====                ======
</TABLE>

                   The accompanying notes are an integral part
               of the consolidated condensed financial statements.

<PAGE>


                           JPE, INC. (d/b/a ASCET INC)
<TABLE>
            CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY
                     For the Six Months Ended June 30, 1999
                  (Amounts in Thousands, Except Per Share Data)
                                   (Unaudited)
<CAPTION>
                                                                                   PREDECESSOR COMPANY
                                                                                                     Net income
                                                    Balances at       Foreign          Issuance    for the period     Balances at
                                                    December 31,      Currency          to the      January 1 to         May 27,
                                                       1998          Translation      Bank Group    May 27, 1999          1999
                                                       ----          -----------      ----------    ------------          ----
<S>                                                  <C>               <C>              <C>           <C>              <C>
Common Stock:
Shares Outstanding                                      4,602                                                             4,602
Amount                                               $ 28,051                                                          $ 28,051

First Series Preferred Shares:
Shares Outstanding                                         --                               21                               21
Amount                                                     --                           $  177                         $    177

Warrants:
Warrants Outstanding                                       --                               77                               77
Amount                                                     --                           $   54                         $     54

Accumulated Other
Comprehensive Loss                                   $   (336)         $ 336                                                 --

Retained Earnings (Deficit)                          $(47,856)                                        $ 20,877         $(26,979)
                                                     --------------------------------------------------------------------------

Total Shareholder Equity                             $(20,141)         $ 336            $  231        $ 20,877         $  1,303
                                                     ==========================================================================



                                                                                              ASCET INC

                                                                                      Predecessor       Net income
                                                    Balances at        Investment    Shareholders     for the period     Balances at
                                                       May 27,            New            Basis          May 28 to         June 30,
                                                        1999          Shareholders       Change       June 30, 1999         1999
                                                        ----          ------------       ------          ---------          ----
Common Stock:
Shares Outstanding                                      4,602              9,442                                         14,044
Amount                                               $ 28,051          $   2,287        $(28,005)                      $  2,333

First Series Preferred Shares:
Shares Outstanding                                         21              1,952                                          1,973
Amount                                               $    177          $  16,413                                       $ 16,590

Warrants:
Warrants Outstanding                                       77                                346                            423
Amount                                               $     54                           $    239                       $    293

Accumulated Other
Comprehensive Loss                                         --                                                                --

Retained Earnings (Deficit)                          $(26,979)                          $  26,979     $      513       $    513
                                                     --------------------------------------------------------------------------

Total Shareholder Equity                             $  1,303          $  18,700        $    (787)    $      513       $ 19,729
                                                     ==========================================================================
</TABLE>
                   The accompanying notes are an integral part
               of the consolidated condensed financial statements.


<PAGE>


                           JPE, INC. (d/b/a ASCET INC)
<TABLE>
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                        (Amounts in Thousands, unaudited)
<CAPTION>
                                                                Predecessor                         Predecessor
                                                                  Company          ASCET INC          Company
                                                                Period From       Period From       Six Months
                                                              January 1, 1999     May 28,1999          Ended
                                                              Through May 27,  Through June 30,      June 30,
                                                                   1999              1999              1998
                                                                   ----              ----              ----
<S>                                                              <C>             <C>                <C>

Cash flows from operating activities:
     Net income (loss)                                           $ 20,877        $      513         $ (10,704)
     Adjustments to reconcile net income (loss) to net
     cash provided by (used for) operating activities:
           Extraordinary items, forgiveness of debt
             and liabilities                                      (18,272)               --                --
           Depreciation and amortization                            1,233               309             5,516
           Loss on sale of assets                                   2,549                --                --
           Write-down of assets                                        --                --             4,468
           Affiliate companies' income                             (7,611)               --                --
           Other                                                       98                --                --
           Changes in operating assets and liabilities:
                  Accounts receivable                              (2,306)             (851)            1,778
                  Inventory                                           279               314             3,074
                  Other current assets                                924              (205)              644
                  Accounts payable                                  2,028            (2,165)           (2,525)
                  Accrued liabilities and income taxes               (457)             (172)           (1,743)
                  Deferred income taxes                                 2                (1)             (882)
                                                                 --------        ----------         ---------
                  Net cash (used for) operating activities           (656)           (2,258)             (374)

Cash flows from investing activities:
     Purchase of property and equipment                              (275)              (78)           (2,062)
     Cash proceeds from sale of Industrial &
         Automotive Fasteners, Inc.                                20,000                --                --
     Cash received from (loaned to) equity investees              (13,980)               --                --
                                                                 --------        ----------         ---------
                  Net cash provided by (used for)
                      investing activities                          5,745               (78)           (2,062)

Cash flows from financing activities:
     Net borrowings under demand notes                                 --            48,493                --
     Net borrowings (payments) under revolving loan                (1,742)          (66,257)            1,781
     Net borrowings under Canadian credit facility                     --                --             1,596
     Repayments of other debt                                          (6)               (2)             (429)
     Issuance of First Series Preferred Shares                          1            16,413                --
     Issuance of common stock                                          --            1, 987                --
                                                                 --------        ----------         ---------

                  Net cash provided by (used for)
                      financing activities                         (1,747)              634             2,948

     Effect of currency translation on cash                            --                --               (48)

Cash and cash equivalents:
     Net increase (decrease) in cash                                3,342            (1,702)              464
     Cash, beginning of period                                        394             3,736                29
                                                                 --------        ----------         ---------

     Cash, end of period                                         $  3,736        $    2,034         $     493
                                                                =========        ==========         =========
</TABLE>

                   The accompanying notes are an integral part
               of the consolidated condensed financial statements


<PAGE>



                           JPE, INC. (d/b/a ASCET INC)
         NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS


A.       BASIS OF PRESENTATION:

         The accompanying  unaudited condensed consolidated financial statements
         have been prepared in accordance  with  generally  accepted  accounting
         principles for interim financial  information and with the instructions
         to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not
         include all of the  information  and  footnotes  required by  generally
         accepted accounting  principles for complete financial  statements.  In
         the  opinion  of  management,  all  adjustments  consisting  of  normal
         recurring nature considered necessary for a fair presentation have been
         included except as disclosed below.  Operating  results for the periods
         presented  are not  necessarily  indicative  of the results that may be
         expected for the year ended December 31, 1999.

         The  balance  sheet at  December  31,  1998 has been  derived  from the
         audited  financial  statements at that date but does not include all of
         the information and footnotes required by generally accepted accounting
         principles for complete financial statements.

         For further information, refer to the consolidated financial statements
         and  footnotes   thereto   included  in  the  Registrant   Company  and
         Subsidiaries'  annual  report on Form 10-K for the year ended  December
         31, 1998.

         In   accordance  with  the  terms  of  an  Investment   Agreement  (the
         "Investment  Agreement")   dated  April 28, 1999 among JPE,  Inc.  (the
         "Company"),  ASC  Holdings   LLC  ("ASC"),  and  Kojaian  Holdings  LLC
         ("Kojaian"),   the Company issued  1,952,352.19  shares of First Series
         Preferred   Shares  on May 27,  1999  (the  "Closing  Date"),  in equal
         proportions  to ASC (50%) and Kojaian (50%), for an aggregate  purchase
         price  of  $16,413,274  payable in cash.  In addition,  pursuant to the
         Investment   Agreement,  on May 27,  1999  ASC and  Kojaian  (in  equal
         proportions)   subscribed and paid for 9,441,420 newly issued shares of
         common  stock for an aggregate  purchase price of $1,986,726 payable in
         cash.   The  immediate  effect  of  these   transactions   ("Investment
         Transaction")   transferred  (a)  approximately  47.5%  of  the  voting
         securities of the Company to  Kojaian,  and (b) approximately  47.5% of
         the voting  securities of the Company  to ASC. Pursuant to the terms of
         a  Shareholders  Agreement  dated  as of May 27,  1999  between ASC and
         Kojaian,  the  parties,  among  other  things,  are to cooperate in the
         voting  of  their  shares  of  the  Company,  including  regarding  the
         nomination  and election of members to the Board  of  Directors  and at
         shareholder  meetings.  The Shareholders  Agreement  also provides that
         neither  ASC  nor  Kojaian  may sell their  securities  in the  Company
         without  the  prior  written  consent of the other.  In  addition,  the
         Shareholders   Agreement  provides  that upon a deadlock  or an impasse
         between  the   parties  or their  nominees  to the  Board of  Directors
         regarding  a  material  issue  lasting  longer  than 90 days,  that the
         parties  shall sell to a  third party  purchaser  the Company or all or
         substantially  all  of   its  assets,  subject  to  certain  terms  and
         conditions  (all  as  more  particularly  defined  in the  Shareholders
         Agreement).  Thus, each  of ASC and Kojaian currently  beneficially own
         approximately 95% of the voting securities of the Company.

         In accounting for these transactions,  the Company has applied purchase
         accounting as prescribed by Accounting  Principles Board Opinion 16 and
         Securities Exchange Commission Staff Accounting Bulletin 54. Under this
         accounting method the difference between the purchase price and the sum
         of the fair value of tangible and identifiable  intangible  assets less
         liabilities assumed was recorded as goodwill.  The goodwill recorded at
         the acquisition date was $2.3 million.

         Accordingly, the consolidated financial statements for periods prior to
         May  27,  1999  are  not  necessarily  comparable  to the  consolidated
         financial  statement  presented  after  that date.  The  Company is now
         operating  under the assumed name of ASCET INC,  which  represents  ASC
         Exterior Technologies.

B.       WARRANTS:

         The Investment  Agreement  provides that  the shareholders of record of
         JPE,  Inc.  (other than Kojaian and ASC)  common stock on June 11, 1999
         (the "Record  Date") are  entitled to  receive as a corporate  dividend
         warrants (the  "Warrants")  entitling  the holder the right to purchase
         .075 shares of  First Series  Preferred  Shares of the Company for each
         share of common stock held  on the Record Date.  The Warrants  carry an
         initial  exercise  price  of $9.99 per First  Series  Preferred  Share,
         subject to price  adjustments based on the Final  Actual EBITDA and the
         cost of certain environmental remediation for the 24  month period from
         the acquisition date. The Warrants are exercisable for  a 90 day period
         following  the  providing  of notice  by the  Company  to  the  holders
         thereof  of the Final  Actual  EBITDA after the JPE  Determination  (as
         defined in the Investment Agreement).

         Based on the initial  exercise  price of the Warrants,  the Company has
         assigned a fair value  based on the  difference  between  the  exercise
         price  and the  present  value of the  exercise  price for the 24 month
         period at a cost of capital  discount rate. The fair value assigned was
         $238.9  thousand.  If the exercise  price of the Warrants is reduced by
         achieving an EBITDA amount in excess of target EBITDA of $34.3 million,
         then  the  difference  in the  exercise  price  will  be  treated  as a
         contingency  based on  earnings  in  future  periods  and  recorded  as
         additional consideration. The additional consideration, if any, will be
         an increase to goodwill.

         If all Warrants are  exercised,  including  the Warrants  issued to the
         lenders  described in Note C, then ASC and Kojaian  would  beneficially
         own approximately 80% of the voting securities of the Company.

C.       FORGIVENESS OF BANK DEBT:

         As a precondition  to  consummation  of the Investment  Agreement,  the
         Company's  existing bank lenders (the "Bank  Group")  agreed on May 27,
         1999 to a $16.5  million  forgiveness  of the  Company's  existing bank
         debt,  under the terms of the  Company's  Forbearance  Agreement  dated
         August 10, 1998, as amended.  In consideration for the debt forgiveness
         and pursuant to the Investment Agreement, the Company issued 20,650.115
         shares of First  Series  Preferred  Shares to the Bank Group on May 27,
         1999 for $1,000 of consideration.  In addition, the Company granted the
         existing bank lenders 77,437.937 Warrants (which contain the same terms
         and  conditions  as granted to the  shareholder  of common stock of the
         Company on the Record Date).


         The Company has determined the fair value of the First Series Preferred
         Shares issued to the Bank Group to be $177.5 thousand based on the same
         price per share paid by ASC and  Kojaian.  The  Warrants  issued to the
         Bank  Group have a fair value of $53.6  thousand  computed  in the same
         method  used for  shareholders  of  record.  These  amounts  reduce the
         forgiveness  of the bank debt,  resulting in an  extraordinary  item of
         $16.3  million or $3.53 per share.  The  Company has  utilized  its net
         operating  loss carry forward  to offset the  taxable  income  from the
         forgiveness of debt and liabilities.

D.       INVESTMENT IN U.S. AFFILIATE COMPANIES:

         JPE's   subsidiaries,   Plastic  Trim,   Inc.   ("PTI")  and  Starboard
         Industries,   Inc.  ("Starboard"),   were  debtors-in-possession  under
         Chapter 11 of the Federal  Bankruptcy  Code.  Under  these  conditions,
         generally accepted  accounting  principles did not allow the Company to
         consolidate  these  subsidiaries  from  September 15, 1998, the date of
         filing their voluntary petitions with the Bankruptcy Court. On February
         25,  1999,  both  subsidiaries  filed  a  Plan  of  Reorganization  and
         Disclosure  Statement with the Court. In connection with the Investment
         Transaction,  the reorganization  plans of the Company's  subsidiaries,
         PTI and  Starboard,  which were  confirmed by the  Bankruptcy  Court on
         April 16, 1999,  became  effective on May 27, 1999.  Certain vendors of
         these subsidiaries agreed to accept 30% of their pre-bankruptcy account
         balances  as a part of the  reorganization  plans.  The  net  gain as a
         result of the forgiveness of certain  liabilities was $3.8 million,  is
         included in the caption  "Affiliates  companies  (income) loss" for the
         period January 1, 1999 to May 27, 1999. These subsidiaries are included
         in the  consolidated  financial  statements  effective May 28, 1999 for
         ASCET INC. The results of operations before  extraordinary item of debt
         forgiveness  for period  January 1 through  May 27, 1999 was as follows
         (amounts in thousands):

<TABLE>
<CAPTION>
                                           PTI                Starboard              Total
                                           ---                ---------              -----
         <S>                             <C>                   <C>                  <C>

         Sales                           $33,162               $10,771              $43,933
         Cost of sales                    29,746                 8,466               38,212
                                         -------               -------              -------
         Gross profit                      3,416                 2,305                5,721
         Selling, general and
          administrative expense          2,284                   646                2,930
         Other reorganization expenses       736                   202                  938
                                         -------               -------              -------
         Income (loss) before interest,
           taxes and extraordinary item      396                 1,457                1,853
         Interest expense                    548                   107                  655
         Income tax expense                    1                    --                    1
                                         -------               -------              -------
         Income (loss) before
           extraordinary item            $ (153)               $ 1,350              $ 1,197
                                         ======                =======              =======
</TABLE>

E.       DISCONTINUED OPERATIONS:

         On March  26,  1999,  JPE sold the  stock of  Industrial  &  Automotive
         Fasteners,  Inc. ("IAF"),  its fastener segment, to MacLean Acquisition
         Company for approximately  $20.0 million.  The sales agreement required
         certain vendors to compromise their accounts receivable from IAF to 30%
         of the outstanding  balance which resulted in an extraordinary  gain of
         $2.0 million or $.44 per share.  The net proceeds of $19.2 million from
         this sale were used to pay down U.S. Bank debt.

         The measurement  date for  discontinued  operation was February 5, 1999
         the date that the  Board of  Directors  and the  lenders  approved  the
         letter of intent.  IAF income from operations  prior to the measurement
         date was $58  thousand,  or $.01 per  share.  The loss on sale was $4.0
         million, offset by income from operations after the measurement date of
         $1.7  million,  resulting  in a net loss of $2.3  million,  or $.50 per
         share.  The Company has  allocated  interest to the  operations  of IAF
         based on the net proceeds  received  from the sale in  accordance  with
         Emerging Issue Task Force Issue No. 87-24.

         Revenue  for IAF for  the three month  period  ended March 31, 1999 was
         $10.0  million  and for  the year  ended  December  31,  1998 was $38.3
         million.

F.       SALE OF JPE CANADA INC.:

         On December 8, 1998, the Bank of Nova Scotia,  the Interim Receiver for
         JPE Canada Inc. ("JPEC"), General Motors Corporation and General Motors
         of Canada Limited entered into an agreement to sell  substantially  all
         the assets of JPEC to the Ventra  Group,  Inc. The  agreement  required
         that  JPEC  make an  assignment  in  bankruptcy  prior to  closing.  On
         February  8, 1999,  JPEC filed an  assignment  in  bankruptcy  with the
         Ontario Court (General Division)  Commercial List and substantially all
         the  assets of JPEC  were sold for  approximately  $13.7  million.  The
         secured bank loans of JPEC were approximately $14.8 million at closing.
         The unpaid  liabilities of JPEC at closing have been eliminated through
         the bankruptcy  proceeding,  resulting in a gain of approximately  $2.9
         million.  For the period of January 1, 1999 to February  8, 1999,  JPEC
         had a net loss from operations of $259 thousand. The gain and loss from
         operations are included in the consolidated statement of operations for
         the period January 1, 1999 to May 27, 1999 under the caption "Affiliate
         companies' (income) losses."

G.       PRO FORMA OPERATING RESULTS:

         The  following  Unaudited  Pro Forma for the Six Months  Ended June 30,
         1999 and 1998 assumes  that the  transactions  and events  described in
         Notes A through F had  occurred  prior to  January  1. The  significant
         adjustments   relate  to  the  difference  in  depreciation,   goodwill
         amortization  and lower interest  expense based on the lower borrowings
         (amounts in thousands):

<TABLE>
<CAPTION>
                                                          Six Months Ended
                                                               June 30,
                                                     -------------------------
                                                        1999              1998
                                                        ----              ----
         <S>                                         <C>               <C>
         Net sales                                   $ 81,843          $ 84,081
         Cost of sales                                 66,712            71,246
         Selling expense                                9,925            10,550
         Interest expense                               2,735             2,920
         Income taxes (benefit)                           926               (56)
                                                     --------          --------
         Income (loss) from
           continuing operations                     $  1,545          $   (579)
                                                     ========          ========
         Basic earnings (loss) per share from
           continuing operations:
                  Common Shares                      $    .01          $   (.01)
                                                     ========          ========
                  First Series Preferred Shares      $    .69          $   (.26)
                                                     ========          ========
               Earnings (loss) per share
                 assuming dilution:
                  Common Shares                      $    .01          $   (.01)
                                                     ========          ========
                  First Series Preferred Shares      $    .64          $   (.26)
                                                     ========          ========
</TABLE>

H.       INVENTORY:

         Inventories by component are as follows (amounts in thousands):
<TABLE>
<CAPTION>

                                            June 30, 1999             June 30, 1998            Dec. 31, 1998
                                            -------------             -------------            -------------
         <S>                                  <C>                        <C>                       <C>
         Finished goods                       $13,460                    $17,903                   $13,291
         Work in process                        2,268                      2,429                     1,411
         Raw material                           4,357                     13,301                     1,606
         Tooling                                   --                      2,705                     2,264
                                              -------                    -------                   -------
                                              $20,085                    $36,338                   $18,572
                                              =======                    =======                   =======
</TABLE>

I.       FINANCING:

         The  Company's  debt  financing is provided by a $56.3  million  demand
         loan from  Comerica  Bank (the  "Comerica  Facility").  The Company has
         executed  three  promissory  notes in the amounts of $6.3 million,  $20
         million,  and  $30 million,  each  providing for  borrowing  options at
         either a Prime  based rate plus 1/2% to 1% or LIBOR  plus 3% to 3 1/2%.
         LIBOR  borrowings for 1 to 6 months are permitted  at the option of the
         Company.  Advances  under the $30 million demand  note are subject to a
         borrowing base restriction  equal to 80% of  eligible trade receivables
         and the greater of 50% of eligible inventory  or $9 million.  There are
         no  restrictions  on  advances  under  either  the $6.3  million or $20
         million  demand notes.  Borrowings under the three promissory notes are
         secured  by the Company's asets, including the Company's cash deposits,
         trade  receivables, inventory, and real and personal property.

         Effective July 1, 1999,  the $6.3 million demand note requires  monthly
         principal  payments of $131,250.  Beginning  November 15, 1999, the $20
         million demand note requires quarterly  principal payments equal to 75%
         of the preceding  quarter's excess cash flow,  defined as after-tax net
         income,   less   principal  note  payments,   plus   depreciation   and
         amortization  expense.  Required  covenants  under the facility are the
         submissions   of  quarterly  and  annual   financial   statements   and
         projections  within a  prescribed  time period and a monthly  borrowing
         base.  There are no  financial  covenants  required by the terms of the
         facility.  Current  borrowings  at June 30,  1999  under  the  Comerica
         Facility are $48.6 million. At June 30, 1999, unused borrowing capacity
         under the Company's $30 million demand note was $1.4 million.

J.       OTHER EXPENSES:

         JPE, Inc., the Predecessor  Company,  has included in other expense for
         period  January  1,  1999 to May 27,  1999  the  costs  related  to the
         negotiation of the Investment  Agreement and other  professional  costs
         associated  with the  bankruptcy  proceedings.  In the six months ended
         June 30, 1998,  other  expense  included the  write-down  of JPE Canada
         patents  and  the  recording  of a loan  guarantee  of the  JPEC  debt.
         Subsequent  to June 30,  1998,  the sale of JPE Canada has  reduced the
         amount  payable  under the loan  guarantee  to $56  thousand,  which is
         reflected in current liabilities on the June 30, 1999 balance sheet.

K.       EARNINGS PER SHARE:

         The issuance of the First Series Preferred Shares resulted in ASCET INC
         having a  participating  security.  In  accordance  with  Statement  of
         Financial  Accounting  Standards No. 128 - Earnings per Share, the "two
         class"  method is used for  computing  earnings  per share.  Under this
         method, an earnings  allocation formula is used to determine the amount
         of earnings  allocated to each class stock.  Based on the participating
         rights of the First Series Preferred Shares  approximately 87.5% of the
         earnings will be allocated to these shares and 12.5% of earnings to the
         Common Stock.  Shares outstanding for the computation of basic earnings
         per  share  was  14,043,600  common  shares  and for the  First  Series
         Preferred Shares of 1,973,002.305. Earnings per share assuming dilution
         requires the Company to use the treasury  method for stock  options and
         warrants.  The Common Stock stock options  outstanding  for the periods
         presented  had exercise  prices that were in excess of the market price
         and therefore had no effect on the computation  assuming dilution.  The
         Warrants  for the  First  Series  Preferred  Shares  has the  effect of
         increasing the denominator in earnings per share calculation by 308,837
         shares.

         Earnings  per share,  prior to the Investment  Transaction was computed
         based  4,602,180 shares  outstanding and stock options had an effect of
         increasing  the shares  by 43,296 and 81,291 for periods  April 1, 1999
         to May  27, 1999 and January 1, 1999 to May 27, 1999,  respectively for
         earnings per share assuming dilution.

L.       INCOME TAXES:

         The  Predecessor  Company has  sustained  $22.9  million of taxable net
         operating  loss  carryovers  for the periods  prior to May 27, 1999. Of
         this amount, $22.1 million was used to offset taxable income associated
         with the bank debt forgiveness  and  vendor liability settlements.  The
         $.8 million of remaining  taxable loss  carryover is subject to certain
         limitations  as a  result  of  the  purchase  and  its  utilization  is
         dependent on the Company's future profitability.  This may prevent full
         utilization of these losses during the carryover  period,  and as such,
         the Company has recorded a $ .3 million  valuation  reserve  related to
         the tax benefits  associated  with such  losses.  The  Company's  37.6%
         effective tax rate for June 1999, representing  all periods  subsequent
         to the Investment Transaction by ASC Holdings LLC and Kojaian  Holdings
         LLC, has been computed at regular tax rates.

         Deferred tax assets and  liabilities  of the  Predecessor  Company have
         been   recognized   on  the  balance  sheet  as  required  by  purchase
         accounting.  The  deferred  tax assets of  approximately  $6.3  million
         reduced  by  a  $3.2  million  valuation  reserve,   and  deferred  tax
         liabilities  of $2.2 million has been recorded at the purchase date. If
         in subsequent  periods,  the valuation  reserve related to deferred tax
         assets can be reduced, the effect will be to reduce goodwill before any
         benefit is realized in the Consolidated Statement of Operations.

M.       SEGMENT INFORMATION:

         In 1998, JPE, Inc. adopted FAS 131,  "Disclosures  about Segments of an
         Enterprise  and  Related  Information."  The  Predecessor  Company  had
         managed and reported its  operating  activities  under three  segments:
         Trim Products,  Fasteners,  and Truck and Automotive Replacement Parts.
         The  Trim  Products  segment  consists  of  decorative  and  functional
         exterior  trim  sold to  Original  Equipment  Manufacturers  ("OEM's").
         Fasteners are decorative, specialty and standard wheel nuts sold to the
         OEM's  and  to  the  replacement   market.  The  Truck  and  Automotive
         Replacement Parts segment consists of heavy-duty vehicle  undercarriage
         parts and brake systems for the automotive industry. JPE, Inc. sold its
         brake  systems  segment  during 1998.  In 1999,  JPE,  Inc. also sold a
         portion of its Trim  Products  segment  (see Note F) and its  Fasteners
         segment (see Note E).  Information  for the  Fastener  segment has been
         excluded as it is accounted for as discontinued operations.

         The accounting policies for the segments are the same as those used for
         the consolidated financial statements. There are no inter-segment sales
         and management does not allocate interest or corporate  expenses to the
         segments.  The Company  evaluates the  performance  of its segments and
         allocates  resources to them based on segment  profit.  Segment  profit
         (loss)  is  defined  as sales  minus  cost of goods  sold and  selling,
         general and administrative  expenses.  Other charges (income) relate to
         non-recurring transactions,  such as bankruptcy-related transactions or
         sales of portions of segments.

         Information  by operating  segment is provided  below for JPE,  Inc. as
         Predecessor Company and the one-month period for ASCET INC as Successor
         Company (amounts in thousands):

<TABLE>
<CAPTION>
                          For The Three Months Ended June 30, 1999

                                                     Trim        Replacement
                                                   Products          Parts           Total
                                                   --------      -----------         -----
         <S>                                   <C>                 <C>             <C>

         Sales to unaffiliated customers
           April 1 to May 27, 1999             $     --            $  9,738        $  9,738
           May 28 to June 30, 1999             $  8,828            $  5,185        $ 14,013
           1998                                $ 31,003            $ 25,656        $ 56,659

         Segment profit (loss)
           April 1 to May 27, 1999             $     --            $    443        $    443
           May 28 to June 30, 1999             $  1,026            $    414        $  1,440
           1998                                $   (882)           $  3,420        $   (111)

         Segment assets
           1999                                $ 46,467            $ 32,837        $ 79,304
           1998                                $ 95,069            $ 60,122        $155,191

</TABLE>

<TABLE>
<CAPTION>
                           For The Six Months Ended June 30, 1999

                                                 Trim             Replacement
                                               Products               Parts         Total
                                               --------           -----------       -----
         <S>                                   <C>                 <C>             <C>

         Sales to unaffiliated customers
           January 1 to May 27, 1999           $     --            $ 23,897        $ 23,897
           May 28 to June 30, 1999             $  8,828            $  5,185        $ 14,013
           1998                                $ 66,869            $ 49,144        $116,013

         Segment profit (loss)
           January 1 to May 27, 1999           $     --            $  1,266        $  1,266
           May 28 to June 30, 1999             $  1,026            $    414        $  1,440
           1998                                $ (3,531)           $  2,052        $  1,170
</TABLE>

         A  reconciliation  of segment profit (loss) for reportable  segments to
         income (loss) from continuing operations before taxes and extraordinary
         items is as follows:

<TABLE>
<CAPTION>

                                                                                                               Predecessor
                                                                      Predecessor           ASCET INC       Three        Six
                                                                April 1,     January 1,       May 28,       Months      Months
                                                                1999 to       1999 to         1999 to       Ended       Ended
                                                                May 27,       May 27,         June 30,     June 30,   June 30,
                                                                 1999           1999            1999         1998       1998
                                                                 ----           ----            ----         ----       ----
         <S>                                                   <C>           <C>             <C>           <C>         <C>
          Segment profit (loss)                                $   443       $1,266          $1,440        $ 1,170     $   (111)

         Other income (expense)                                   (492)        (750)             --         (3,083)      (2,948)

         Affiliate companies' income                             3,893        7,611              --             --          --

         Corporate expense                                        (221)        (452)           (234)          (776)      (1,673)

         Interest expense                                       (1,055)      (2,703)           (384)        (3,083)      (6,080)
                                                               -------       ------          ------        -------     --------

         Income (loss) from continuing
           operations before taxes
           and extraordinary items                              $2,568       $4,972          $  822        $(5,772)    $(10,812)
                                                                ======       ======          ======        =======     ========
</TABLE>
<PAGE>

ITEM 2.       MANAGEMENT'S DISCUSSION AND ANALYSIS
              OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following  discussion  should be read in conjunction  with the  consolidated
financial statements and notes thereto filed with the Company's Annual Report on
Form 10-K to assist in understanding  the Company's  results of operations,  its
financial position,  cash flows,  capital structure and other relevant financial
information.

RECENT INFORMATION

In  accordance  with  the  terms of an  Investment  Agreement  (the  "Investment
Agreement")  dated April 28, 1999 among JPE, Inc. (the "Company"),  ASC Holdings
LLC  ("ASC"),   and  Kojaian  Holdings  LLC  ("Kojaian"),   the  Company  issued
1,952,352.19  shares of First Series  Preferred Shares on May 27, 1999, in equal
proportions to ASC (50%) and Kojaian (50%),  for an aggregate  purchase price of
$16,413,274 payable in cash. In addition,  pursuant to the Investment Agreement,
on May 27, 1999 ASC and Kojaian (in equal  proportions)  subscribed and paid for
9,441,420 newly issued shares of common stock for an aggregate purchase price of
$1,986,726   payable  in  cash.  The  immediate  effect  of  these  transactions
("Investment  Transaction")  transferred (a)  approximately  47.5% of the voting
securities of the Company to  Kojaian, and (b) approximately 47.5% of the voting
securities  of  the  Company  to  ASC.  Pursuant to the terms of a  Shareholders
Agreement dated as of May 27, 1999 between ASC and Kojaian,  the parties,  among
other  things,  are to  cooperate  in the voting of their shares of the Company,
including  regarding  the  nomination  and  election  of members to the Board of
Directors and at shareholder meetings.  The Shareholders Agreement also provides
that neither ASC nor Kojaian may sell their  securities  in the Company  without
the prior written consent of the other. In addition,  the Shareholders Agreement
provides  that upon a  deadlock  or an  impasse  between  the  parties  or their
nominees to the Board of Directors  regarding a material  issue  lasting  longer
than 90 days, that the parties shall sell to a third party purchaser the Company
or all or  substantially  all  of its  assets,  subject  to  certain  terms  and
conditions (all as more  particularly  defined in the  Shareholders  Agreement).
Thus, each of ASC and Kojaian  currently  beneficially own  approximately 95% of
the voting securities of the Company.

In accounting for the Investment  Transaction,  the Company has applied purchase
accounting  as  prescribed  by  Accounting   Principles  Board  Opinion  16  and
Securities   Exchange  Commission  Staff  Accounting  Bulletin  54.  Under  this
accounting  method the difference  between the purchase price and the sum of the
fair value of tangible  and  identifiable  intangible  assets  less  liabilities
assumed shall be recorded as goodwill.  The goodwill recorded at the acquisition
date was $2.3 million.

Accordingly,  the consolidated financial statements for periods prior to May 27,
1999 are not  necessarily  comparable to the  consolidated  financial  statement
presented  after to that date.  The Company is now  operating  under the assumed
name of ASCET INC, which represents ASC Exterior Technologies.

FORWARD LOOKING INFORMATION

This Quarterly  Report on Form 10-Q contains,  and from time to time the Company
expects to make,  certain  forward-looking  statements  regarding  its business,
financial  condition and results of  operations.  In  connection  with the "Safe
Harbor"  provisions  of the Private  Securities  Reform Act of 1995 (the "Reform
Act"),  the Company intends to caution readers that there are several  important
factors that could cause the Company's actual results to differ  materially from
those projected in its forward-looking statements, whether written or oral, made
herein or that may be made  from  time to time by or on  behalf of the  Company.
Investors  are  cautioned   that  such   forward-looking   statements  are  only
predictions and that actual events or results may differ materially. The Company
undertakes no obligation to publicly release the results of any revisions to the
forward-looking  statements to reflect events or circumstances or to reflect the
occurrence of unanticipated events.

The Company wishes to ensure that any forward-looking statements are accompanied
by  meaningful  cautionary  statements  in order to comply with the terms of the
safe harbor provided by the Reform Act. Accordingly, the Company has set forth a
list of  important  factors  that could cause the  Company's  actual  results to
differ  materially  from  those  expressed  in  forward-looking   statements  or
predictions made herein and from time to time by the Company.  Specifically, the
Company's  business,  financial  condition  and results of  operations  could be
materially different from such  forward-looking  statements and predictions as a
result,  among other things,  of (i) customer  pressures that could impact sales
levels  and  product  mix,  including  customer  sourcing  decisions,   customer
evaluation  of market  pricing on products  produced by the Company and customer
cost-cutting  programs;  (ii) operational  difficulties  encountered  during the
launch of major new OEM programs;  (iii) the impact on operations and cash flows
of labor  strikes at the  Company OEM  customers; and (iv) the  availability  of
funds   to   the   Company   to  continue  operations  and provide  for  capital
expenditures.

RESULTS OF OPERATIONS

The management  discussion of the results of operations  has been  structured to
compare the same  operating  units of the  Predecessor  Company,  JPE, Inc. with
those entities that remain parts of the Successor Company,  ASCET INC to provide
meaningful  comparisons.  The  segment  discussion  through  operations  will be
adjusted to reflect  Plastic Trim,  Inc.  "PTI" and Starboard  Industries,  Inc.
"SBI" in the Trim Segment on a consolidated basis, instead of the equity method.

THREE MONTHS ENDED JUNE 30, 1999
COMPARED TO THREE MONTHS ENDED JUNE 30, 1998
--------------------------------------------

ASCET INC operating locations, net sales for the quarter ended June 30, 1999 and
1998 were as follows (in thousands):
<TABLE>
<CAPTION>
                                                    1999                 1998
                                                    ----                 ----
<S>                                               <C>                  <C>

Trim Products                                     $27,058              $20,722
Replacement Parts                                  14,923               20,385
                                                  -------              -------

Total                                             $41,981              $41,107
                                                  =======              =======
</TABLE>

The increase of sales in the Trim Segment of 31% is  attributable  to additional
sales of new programs  for SBI  starting in second half of 1998,  and the GMT800
program for PTI which reached full production in the second  quarter.  The sales
for Trim Segment in 1998 were  negatively  impacted by $2.0 million for a strike
at GM which began in June,  1998.  The sales  decrease in the  Replacement  Part
Segment of 27% is  attributable  to lost of  heavy-duty  brake drum business and
lost customers due to the  bankruptcy  filings by  subsidiaries  of the Company.
Some of the customers of the Replacement  Parts business  elected to dual source
their product  requirements,  since the  bankruptcy  filing,  in order to assure
adequate supply.

In the three months ended June 30, 1998,  sales by entities that were  divested,
by segment, were the following (in thousands):

Trim Products                               $10,281
Fasteners (Discontinued Operations)           9,984
Replacement Parts                             5,271
                                            -------

Total                                       $25,536

None of these entities had any sales in the quarter ended June 30, 1999.

Gross  profit was $7.6 million for the quarter  ended June 30, 1999  compared to
$6.7 million for the same quarter last year for the same operating  locations on
a consolidated basis. The gross profit by segment is as follows (in thousands):

<TABLE>
<CAPTION>
                                                   1999                     1998
                                                   ----                     ----
<S>                                               <C>                     <C>
Trim Products                                     $3,997                  $2,014
Replacement Parts                                  3,602                   4,674
                                                  ------                  ------

Total                                             $7,599                  $6,688
                                                  ======                  ======
</TABLE>

The gross profit percentage for the Trim Product Segment was 14.8% and 10.0% for
the  quarters  ended June 30, 1999 and 1998,  respectively.  The increase in the
gross profit  percentage was attributable to a customer mix change at SBI, lower
scrap  rates at PTI and the effect  that the GM strike in 1998 had on  absorbing
fixed  overhead.  The gross  profit  increase in Trim  Product  Segment was also
favorably  affected by the higher sales volume which accounts for  approximately
$600 thousand of the increase in 1999.

The gross profit as  percentage  of sales for the  Replacement  Parts Segment is
24.1%,  compared  to 22.9% for the three  months  ended June 30,  1999 and 1998,
respectively.  The higher margin is primarily attributable to the elimination of
the  heavy-duty  drum business  which was a low margin  product line. The dollar
decrease in gross  profit is  attributable  to the lower sales volume and higher
factory variances.

Selling,  general and  administrative  expenses  ("SGA")  for the Trim  Products
Segment  was 6.1% and 7.1% of sales for  quarters  ended June 30, 1999 and 1998,
respectively. The lower percentage is attributable to higher sales volume as SGA
costs are primarily fixed costs for the Trim Products  Segment.  The Replacement
Parts Segment's SGA percentage of sales was 18.4% and 15.5% for the three months
ended  June  30,  1999  and  1998,   respectively.   The  higher  percentage  is
attributable  to the lower  sales  volume.  In the  Replacement  Parts  Segment,
management  has  been  reducing  its  SGA  costs,  primarily  through  headcount
reductions and lower marketing costs. The second quarter ended June 30, 1999 SGA
expense is $269 thousand lower than the first quarter of 1999.  Also included in
SGA  is  the  administrative  costs  related  to  the  corporate  office.  Total
administrative costs for the three months ended June 30, 1999 and 1998 were $636
and $775 thousands,  respectively.  The lower  administrative costs is primarily
attributable to headcount reductions.

Other expense for the Predecessor  Company relates to costs and asset write-offs
associated with the bankruptcy  proceedings and JPE's professional costs related
to the Investment Transaction.

Affiliate companies' income for the Predecessor Company for period April 1, 1999
through May 27, 1999  represent  the  operations  of the Trim  Product  Segment.
Included  in the amount  reported  is the gain from the  forgiveness  of certain
vendor  payable  of PTI and SBI in the  amount of $3.8  million.  The  result of
operations  included in this caption is discussed  above in paragraphs of sales,
gross profit and SGA expense.

The  interest  expense for the three months ended June 30, 1999 for all of JPE's
operations,  including  amounts  reflected in the caption  "Affiliate  companies
income" was $1.9 million.  This  compares with interest  expense for the quarter
ended June 30, 1998 of $3.1 million.  The lower interest is primarily due to the
divesture of  businesses  since the second  quarter of 1998.  In  addition,  the
interest  rate in 1998 was  approximately  11%  compared  to ASCET  INC  current
average rate of 8.65%.

The effective  tax rate for ASCET INC is 37.6%.  This rate reflects a normalized
rate as the deferred tax assets and  liabilities  acquired in purchase have been
recorded on the  balance  sheet net of a valuation  reserves.  If in  subsequent
periods,  additional deferred tax assets can be recognized, any adjustment would
first  reduce  goodwill to zero and then would reduce  income tax  expense.  Tax
expense for the Predecessor Company is not a normal rate due to the write-off of
deferred tax assets on JPE Canada's  books for quarter ended June 30, 1998.  The
low tax expense for period April 1, 1999 through May 27, 1999 is attributable to
utilization of loss carryforwards.

The  extraordinary  item for Predecessor  Company  represents the forgiveness of
debt by JPE's Bank Group as  explained in Note C of the  Consolidated  Financial
Statements.  There is no  associated  tax with these  items as the  Company  has
utilized its previously unrecorded loss carryforward to offset the tax expense.

Earnings  per share  methodology  is  described  under  Note K of the  Unaudited
Consolidated  Condensed Financial Statements.  The common shares outstanding for
the  Predecessor  Company was 4,602,180 for the period April 1, 1999 through May
27, 1999 and same for quarter ended June 30, 1998. The common shares outstanding
for  ASCET  INC was  14,043,600  and the  First  Series  Preferred  Shares  were
1,973,002 for the period April 1, 1999 to May 27, 1999.


SIX MONTHS ENDED JUNE 30, 1999
COMPARED TO SIX MONTHS ENDED JUNE 30, 1998
------------------------------------------

ASCET INC operating locations, net sales for the  six months ended June 30, 1999
and 1998, were as follows (in thousands):
<TABLE>
<CAPTION>

                                                   1999                    1998
                                                   ----                    ----
<S>                                              <C>                     <C>

Trim Products                                    $52,761                 $44,380
Replacement Parts                                 29,082                  39,701
                                                 -------                 -------

Total                                            $81,843                 $84,081
                                                 =======                 =======
</TABLE>

The increase in Trim Products Segment sales is primarily attributable to the new
sales programs for SBI and the GMT800 program for PTI. The Trim Products segment
sales were  negatively  affected by the GM strike in 1998. The sales decrease in
Replacement  Parts segment relates to items explained in the discussion of three
months operating results above.

In  the  six  months  ended  June 30, 1999 and 1998, sales by entities that were
divested by segment were the following (in thousands):

<TABLE>
<CAPTION>
                                                     1999             1998
                                                     ----             ----
<S>                                               <C>                <C>

Trim Products                                     $  4,066           $ 22,489
Fasteners                                           10,024             20,054
Replacement Parts                                       --              9,443
                                                  --------           --------

Total                                             $ 14,090           $ 51,986
                                                  ========           ========
</TABLE>

Gross profit was $14.8  million for the six months ended June 30, 1999  compared
to $12.1 million for the same period last year for the same operating  locations
on a  consolidated  basis.  The  gross  profit  by  segment  is as  follows  (in
thousands):
<TABLE>
<CAPTION>

                                                     1999              1998
                                                     ----              ----
<S>                                               <C>               <C>

Trim Products                                     $  7,325          $  3,043
Replacement Parts                                    7,446             9,014
                                                  --------          --------

Total                                             $ 14,771          $ 12,057
                                                  ========          ========
</TABLE>

The gross  profit  percentage  as a  percentage  of sales  for the Trim  Product
Segment was 13.9%  compared  to 6.8% for the six months  ended June 30, 1999 and
1998, respectively. The increase in the gross profit percentage was attributable
to a customer  mix change at SBI,  lower  scrap rates at PTI and the effect that
the GM strike in 1998 had on absorbing fixed  overhead.  In the first quarter of
1998, PTI gross profit  percentage was 2.8%, due to high scrap rates and product
efficiencies as a result of a new program  launch.  The gross profit increase in
Trim Product  Segment was also  favorably  affected by the higher sales  volume,
especially at SBI, which accounts for approximately $1.4 million of the increase
in 1999.

The gross profit as a percentage of sales for the  Replacement  Parts Segment is
25.6%,  compared  to 22.7%  for the six  months  ended  June 30,  1999 and 1998,
respectively.  The higher margin is primarily attributable to the elimination of
the  heavy-duty  drum business  which was a low margin product line and a better
product mix in the first quarter of 1999.

Selling,  general and administrative  expenses for the same operating units on a
consolidated basis for the six month period were as follows (in thousands):

<TABLE>
<CAPTION>
                                             1999                      1998
                                             ----                      ----
<S>                                         <C>                      <C>
Trim Products                               $ 3,058                  $  2,962
Replacement Parts                             5,780                     6,358
Corporate Expense                             1,137                     1,673
                                            -------                  --------

Total                                       $ 9,975                  $ 10,993
                                            =======                  ========
</TABLE>

The lower SGA is primarily due to headcount  reduction at Dayton Parts, Inc. and
the Corporate  Office.  The Dayton Parts headcount is being reduced due to lower
sales.  The  reduction  in  Corporate  expense  was the result of not  replacing
employees  that left  during the  restructuring  of the  Company.  Some of these
positions will be hired during the third quarter of 1999.

Other  expense  represents  the  same  costs  as  noted  above  in  three  month
comparison.

Affiliate   companies  income  for  Predecessor  Company  included  the  matters
mentioned  in the three  month  comparison  and the  elimination  of JPEC unpaid
liabilities of $2.9 million  through its bankruptcy  proceedings.  The operating
results  for the Trim  Product  segment  for the six months  ended June 30, 1999
included segment profit (sales minus cost of goods sold and selling, general and
administrative expense) of $3.6 million for PTI and Starboard as compared to $81
thousand for the six months ended June 30, 1998.  This  improvement is explained
above in the paragraphs discussing sales, gross profit and selling,  general and
administrative  expense.  JPEC had an  operating  profit of $75  thousand in the
first half of 1999 prior to its divesture.

The  interest  expense  for the six months  ended June 30,  1999  including  the
amounts reflected in the caption "Affiliate  companies income", was $4.5 million
as compared to $7.0  million for the same period last year.  The lower  interest
expense is the result of lower debt levels due to the sale of certain businesses
and lower  effective  interest rates.  Discussion of current  borrowing rates is
included in the Liquidity and Capital Resources section below.

The  comparison  of tax expense for the six month  periods is  discussed  in the
three month comparison.

The income from continuing  operations for the six months ended June 30, 1999 is
divided into two periods,  the  Predecessor  Company January 1, 1999 through May
27, 1999 of $4.9 million and ASCET INC, the  Successor  Company,  for the period
May 28, 1999 through June 30, 1999 of $513 thousand. The application of purchase
accounting  results in improvement  in operating  results of  approximately  $79
thousand a month for the Successor  Company,  as compared to the  accounting for
the Predecessor Company.

The discontinued operation included in the six months ended June 30, 1999 is the
result of the sale of the Fastener segment. The measurement date was February 5,
1999 as result  this  segment  had  operations  for one month  resulting  in $58
thousand  of net  income,  or $.01 per share,  and  during  the sale  process of
approximately two months its operation  generated net income of $1.7 million, or
$.36  per  share,  used to  offset  the net  loss on sale of $4.0  million.  The
extraordinary  items  included  in the six  months  results  for June  30,  1999
represents the bank group debt forgiveness of $16.3 million, or $3.53 per share,
and a settlement  of certain  IAF's vendor  payables at 70% discount for gain of
$2.0 million, or $.44 per share.

Earnings per share  computations for the Predecessor  Company is based on shares
outstanding prior to the Investment Transaction of 4,602,180.  ASCET INC has two
classes of securities that have the rights to participate in the earnings, under
Financial  Accounting  Standard  128, the earnings are  allocated to the classes
based on their rights,  approximately  12.5% of relate to Common Stock and 87.5%
to First Series Preferred  Shares.  The shares  outstanding for the Common Stock
after the Investment  Transaction were  14,043,600,  resulting in basic earnings
per common  share from  continuing  operations  and before  extraordinary  items
fractional  amount of approximately 1/2 cents. The First Series Preferred Shares
computation  is based on 1,973,002  shares and  resulting in basis  earnings per
First  Series   Preferred   Shares  from   continuing   operations   and  before
extraordinary  items of $.23.  Comparison  to basic  loss per  share for the six
months ended June 30, 1998 is not meaningful due to the Investment Transaction.

LIQUIDITY AND CAPITAL RESOURCES

Effective,  May 27, 1999, the Company's principal source of liquidity is a $56.3
million  demand loan from  Comerica  Bank (the  "Comerica  Facility"),  which is
available to fund daily working capital needs in excess of internally  generated
funds.  Prior  to  May  27,  1999,  the  Company's  source  of  liquidity  was a
Forbearance  Agreement  dated  August 10,  1998 (as  amended  August  31,  1998,
September 4, 1998,  September 16, 1998,  October 1, 1998,  December 1, 1998, and
March 26, 1999), and debtor-in-possession financing by GMAC Business Credit, LLC
for the Company's  subsidiaries,  Plastic Trim, Inc., and Starboard  Industries,
Inc.  Borrowings under both the Forbearance  Agreement and  debtor-in-possession
financing   were  repaid  May  27,  1999  in  connection   with  the  Investment
Transaction.

In  connection  with the  Comerica  Facility,  the  Company has  executed  three
promissory notes in the amounts of $6.3 million,  $20 million,  and $30 million,
each  providing for borrowing  options at either a Prime based rate plus 1/2% to
1% or LIBOR plus 3% to 3 1/2%.  LIBOR borrowings for 1 to 6 months are permitted
at the option of the  Company.  Advances  under the $30 million  demand note are
subject  to a  borrowing  base  restriction  equal  to  80%  of  eligible  trade
receivables  and the greater of 50% of eligible  inventory or $9 million.  There
are no  restrictions  on advances  under  either the $6.3 million or $20 million
demand notes.  Borrowings  under the three  promissory  notes are secured by the
Company's assets,  including cash deposits,  trade receivables,  inventory,  and
real and personal property.

Effective July 1, 1999, the $6.3 million demand note requires monthly  principal
payments of $131,250.  Beginning  November 15, 1999, the $20 million demand note
requires quarterly  principal  payments equal to 75% of the preceding  quarter's
excess cash flow, defined as after-tax net income, less principal note payments,
plus  depreciation  and  amortization  expense.  Required  covenants  under  the
facility are the  submissions of quarterly and annual  financial  statements and
projections  within a prescribed time and a monthly borrowing base. There are no
financial covenants required by the terms of the facility.

Amounts  drawn under these loans as of May 27, 1999 was $51.7  million.  Current
borrowings at June 30, 1999 under the Comerica  Facility are $48.6  million.  At
June 30, 1999, unused borrowing  capacity under the Company's $30 million demand
note was $1.4 million. The Company believes the Comerica Facility is adequate to
provide it with monthly short term working capital needs,  with the exception of
certain  cyclical months  affected by a reduction in operations  brought upon by
shutdowns for model changeovers at certain OEM customers, such as General Motors
Corporation.  During these months, the Company intends to supplement any working
capital  needs through a demand note from an  affiliated  company.  Advances are
permitted up to $3 million and are unsecured and  subordinated  to advances made
under the Comerica Facility. Interest accrues at prime plus 1 1/2% as is payable
quarterly. As of June 30, 1999, there were no advances made under this note.

Due to their demand nature, the notes have been classified as short-term debt on
the Company's  balance sheet. As of June 30, 1999, in measuring working capital,
the  Company's  Current  Liabilities  exceed  Current  Assets by $11.6  million.
Excluding the amount outstanding under the Comerica Facility, working capital at
June 30, 1999 would have been $37.0 million.

YEAR 2000

The Company is  scheduled  to completed  all Year 2000  readiness  plans for all
locations by September 30, 1999.

In April 1999, Dayton Parts' mainframe systems, which regulate order processing,
accounting,  production scheduling, and human resource functions, were Year 2000
compliant. Manufacturing operations do not rely on date sensitive processes and,
as such, Year 2000 compliance issues are not material. Management of the Company
has  determined  that its  principal  Year 2000 risk  exists in  maintaining  an
uninterrupted  source of supply from its vendors.  In that regard,  Dayton Parts
has actively solicited its vendor base to report on their Year 2000 initiatives.
Dayton Parts has received Year 2000 readiness responses from a majority of their
vendors  and  customers  and a  contingency  plan  to  address  year-end  supply
interruption issues has been developed.  The plan addresses alternate sources of
supply as well as increased  safety stock levels.  As a result,  management  has
determined  that any  revenue  loss due to Year 2000  would be  immaterial.  The
Company's  adjoining  retail store  location and  Canadian  warehouse  operation
purchased replacement systems. Full testing and implementation for both of these
locations is on schedule for completion during the third quarter of 1999.  Total
cost to the Company for this initiative is approximately $200 thousand.

Both of the Company's exterior OEM automotive trim  subsidiaries,  Plastic Trim,
Inc. and Starboard  Industries,  Inc. purchased  replacement systems during 1998
and 1999,  respectively.  Full  implementation  of all systems for Plastic Trim,
Inc. was  completed  during June 1999 and was rated Year 2000 ready at that time
by their  OEM  customer  task  force.  Questionnaires  have  been  mailed  and a
contingency  plan to  address  vendor  supply  interruptions  is  scheduled  for
completion during the third quarter of 1999. Year 2000  implementation  costs to
the Company totaled approximately $400 thousand.

Starboard  Industries,  Inc. purchased replacement systems during June 1999 with
full  implementation  completed  during July 1999. Total cost to the Company for
this  initiative  was less than  $100,000.  All of the  Company's  manufacturing
systems  which are date  sensitive  systems  are Year 2000  compliant.  A vendor
contingency plan is being developed which included soliciting all 30 key vendors
for their Year 2000 readiness plans.  Completion of the vendor  contingency plan
is scheduled for the third quarter of 1999.



<PAGE>


                           PART II. OTHER INFORMATION

                           JPE, INC. (d/b/a ASCET INC)


Item 2.   Changes in Securities and Use of Proceeds

                 c.      Pursuant to an Investment  Agreement  (the  "Investment
                         Agreement")  dated April 28, 1999 among JPE,  Inc. (the
                         "Company"),  ASC  Holdings  LLC  ("ASC"),  and  Kojaian
                         Holdings LLC  ("Kojaian"),  on May 27, 1999 the Company
                         issued an  aggregate  of  1,952,352.19  shares of First
                         Series  Preferred  Shares and  9,441,420  newly  issued
                         shares of common stock,  each in equal  proportions  to
                         ASC (50%) and Kojaian (50%).

                         As  a precondition  to the  consummation  of  the above
                         transaction,   the  Company's   existing  bank  lenders
                         (Comerica Bank, Bank One, Dayton,  N.A., Bank One, N.A.
                         (f/k/a  NBD Bank),  National  Bank of Canada and Harris
                         Trust  and  Savings  Bank)  (collectively,   the  "Bank
                         Group"))  agreed  on May  27,  1999  to  forgive  $16.5
                         million of the  Company's  existing bank debt under the
                         terms  of the  Company's  Forbearance  Agreement  dated
                         August 10, 1998, as amended. Pursuant to the Investment
                         Agreement,  the Company issued  20,650.115 First Series
                         Preferred  Shares to the Bank  Group (on the same terms
                         and conditions as granted to the public shareholders of
                         common  stock of the Company on the Record Date) on May
                         27, 1999 for $1,000 of consideration.  In addition, the
                         Company   granted  the  Bank  Group  an   aggregate  of
                         77,437.937  Warrants entitling each holder the right to
                         shares of First Series Preferred Shares of the Company.
                         Each  Warrant  possesses an initial  exercise  price of
                         $9.99 per First  Series  Preferred  Share,  subject  to
                         price  adjustments based on the Final Actual EBITDA and
                         the cost of certain  environmental  remediation for the
                         24 month  period from May 27,  1999.  The  Warrants are
                         exercisable  for  the  90  day  period   following  the
                         providing  of  notice  by the  Company  to the  holders
                         thereof  of the  Final  Actual  EBITDA  after  the  JPE
                         Determination (as defined in the Investment Agreement).

                         Involving    seven    accredited    investors,    these
                         transactions are exempt from  registration  pursuant to
                         Section  4(2)  of  the  Securities  Act  of  1933  (the
                         "Securities Act").

Item 5.    Other Information

                         Mike  Kojaian  and C. Michael  Kojaian (the two members
                         of  Kojaian  Holdings  LLC  ("Kojaian"))  and  Heinz C.
                         Prechter  (the sole member of ASC Holdings LLC ("ASC"))
                         entered into a letter put agreement  Dated May 27, 1999
                         (the  "Original  Put  Agreement").   The  Original  Put
                         Agreement   provides  that  it  is  contemplated   that
                         following the consummation of the Investment Agreement,
                         all of the  outstanding  shares of capital stock or all
                         of the  assets of Dott  Industries,  Inc.,  a  Michigan
                         corporation  ("Dott"),  would  be  acquired  by (1) the
                         Company and/or its  subsidiaries or (2) one-half by ASC
                         and one half by Kojaian for an aggregate purchase price
                         of no less than $28 to $30 million  (less the  existing
                         indebtedness   of  Dott  if   structured   as  a  stock
                         acquisition  or  merger  (if  structured  as  an  asset
                         purchase,  Dott would use the  proceeds  to pay-off its
                         existing indebtedness)) (the "Dott Acquisition"). Under
                         the Original Put Agreement, each of Mike Kojaian and C.
                         Michael  Kojaian  have the  right to  require  Heinz C.
                         Prechter  (in  his  individual  capacity)  to  purchase
                         (through  ASC or  otherwise)  all of the  shares of the
                         Company  owned by Mike Kojaian and C.  Michael  Kojaian
                         for  the   purchase   price  paid  by  them  under  the
                         Investment   Agreement  (plus  interest)  if  the  Dott
                         Acquisition  is not  consummated  on or before June 30,
                         1999 (the  "Put").  Either Mike  Kojaian or C.  Michael
                         Kojaian may exercise the Put from any time beginning on
                         June  30,  1999  and  ending  on  July  30,  1999  (the
                         "Exercise  Period").  The parties to the  Original  Put
                         Agreement entered into a letter agreement (the "Amended
                         and Restated Put  Agreement")  dated July 27, 1999 that
                         restated  the terms of the Original Put except that the
                         Amended  and  Restated  Put   Agreement   extended  the
                         Exercise Period through September 15, 1999.

Item 6.   Exhibits and Reports on Form 8-K

          a.   Exhibits:

                  10.1     Letter Agreement,  dated May 27, 1999, among Heinz C.
                           Prechter,   Mike   Kojaian  and  C.  Michael Kojaian,
                           filed with this report.

                  10.2     Amended and Restated Letter Agreement, dated July 27,
                           1999,  among Heinz C. Prechter,  Mike Kojaian  and C.
                           Michael Kojaian, filed with this report.

                  10.3     Subordinated  Demand  Revolving  Credit  Note,  dated
                           August 23, 1999, filed with this report.


          b.   Report on Form 8-K:


               On  April  15,  1999,  Registrant  filed a  report  on Form  8-K,
               reporting (i) the sale of substantially  all of the assets of JPE
               Canada Inc., an Ontario,  Canada  corporation  and a wholly-owned
               subsidiary of the Registrant,  to Ventra Group, Inc. and (ii) the
               sale of 100% of the issued and outstanding shares of common stock
               of   Industrial   &  Automotive   Fasteners,   Inc.,  a  Michigan
               corporation and  wholly-owned  subsidiary of the  Registrant,  to
               MacLean Acquisition Company.

               On June 8, 1999, Registrant filed a report on Form 8-K, reporting
               changes in control of Registrant. In accordance with the terms of
               an Investment Agreement dated April 28, 1999 among JPE, Inc., ASC
               Holdings  LLC,  and Kojaian  Holdings  LLC,  the  Company  issued
               1,952,352.19   shares  of  First  Series   Preferred  Shares  and
               9,441,420 common shares in equal  proportions to ASC Holdings LLC
               (50%) and Kojaian Holdings LLC (50%),  for an aggregate  purchase
               price of $18.4 million payable in cash.

               On June  30,  1999,  Registrant  filed  a  report  on  Form  8-K,
               reporting changes in Registrant's Certifying Accountant.  On June
               25, 1999,  JPE,  Inc.  d/b/a ASCET INC engaged Ernst & Young LLP,
               independent auditors,  as the Registrant's  principal accountants
               to  audit  the  Registrant's  financial  statements  for the year
               ending  December 31,  1999.  Ernst & Young was engaged to replace
               PricewaterhouseCoopers  LLP,  independent  accountants,  who  had
               previously been engaged for the same purpose, and whose dismissal
               was effective on June 25, 1999.

<PAGE>

                           JPE, INC. (d/b/a ASCET INC)

                                    SIGNATURE


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                            JPE, Inc. d/b/a ASCET INC


                            By:      /s/ Joseph E. Blake
                                     Joseph E. Blake
                                     Vice President and Chief Financial Officer
                                     (Principal Accounting Officer)

Date:  August 23, 1999