<PAGE>   1
                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 March 31, 2001.

       [ ]  Transition Report Pursuant to Section 13 or 15(d) of the
            Securities Exchange Act of 1934 for the quarterly period
            from ________ to _____________.

                         Commission file number 0-22580

              JPE, Inc. (d/b/a ASCET and ASC Exterior Technologies)
             (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) 203-0440
              (Registrant's telephone number, including area code)


                                 Not Applicable
                     (Former name, former address and formal
                  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 March 31, 2001, there were 14,043,600 shares of the registrant's common
stock outstanding. This Quarterly Report on Form 10-Q contains 19 pages, of
which this is page 1.


                                       1
<PAGE>   2


               JPE, INC. (D/B/A ASCET, ASC EXTERIOR TECHNOLOGIES)

                                      INDEX

<TABLE>
<CAPTION>
                                                                                                                  Page
                                                                                                                  ----
<S>             <C>                                                                                             <C>
PART I.         Financial Information

                ITEM 1.    Financial Statements
                           Consolidated Condensed Balance Sheets                                                    3
                           -  At March 31, 2001 (Unaudited)
                           -  At December 31, 2000

                           Consolidated Condensed Statements of  Operations (Unaudited)                             4
                           -  For the Three Months Ended March 31, 2001 and 2000

                           Consolidated Condensed Statements of  Shareholders' Equity (Unaudited)                   5
                           -  For the Three Months Ended March 31, 2001

                           Consolidated Condensed Statements of  Cash Flows (Unaudited)                             6
                           -  For the Three Months ended March 31, 2001 and 2000

                           Notes to Unaudited Consolidated Condensed Financial Statements                           7

                ITEM 2.    Management's Discussion and Analysis of Financial Condition and Results of
                           Operations                                                                              14

                ITEM 3.    Quantitative and Qualitative Disclosures about Market Risk                              16


PART II.        Other Information                                                                                  18

                ITEM 6.    Exhibits and Reports

                Signature                                                                                          19
</TABLE>


                                       2
<PAGE>   3



                          PART I. FINANCIAL INFORMATION

ITEM 1.       FINANCIAL STATEMENTS
              JPE, INC. (D/B/A ASCET AND ASC EXTERIOR TECHNOLOGIES)
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                            ($ amounts in thousands)

<TABLE>
<CAPTION>
                                                                         AT MARCH 31,      AT
                                                                            2001        DECEMBER 31,
                                                                          UNAUDITED        2000
                                                                         ------------   ------------
<S>                                                                      <C>            <C>
                                           ASSETS
Current assets:
      Cash and cash equivalents                                            $    176      $    196
      Accounts receivables trade, net                                        16,748        14,506
      Inventory                                                              19,703        22,269
      Other current assets                                                    2,317         1,405
                                                                           --------      --------
            Total current assets                                             38,944        38,376

      Property, plant and equipment, net                                     22,993        23,582
      Goodwill, net                                                           3,563         3,630
      Deferred income taxes                                                   2,366         2,295
      Other assets                                                            1,851         2,007
                                                                           --------      --------

            Total assets                                                   $ 69,717      $ 69,890
                                                                           ========      ========

                        LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

Current liabilities:
      Current portion of long-term debt                                    $    591      $    611
      Accounts payable                                                        8,331         8,722
      Accrued liabilities                                                     4,206         4,319
      Income Taxes                                                              223           224
                                                                           --------      --------
            Total current liabilities                                        13,351        13,876

      Deferred income taxes                                                   2,366         2,295
      Other liabilities                                                           5            20
      Long-term debt, non-current                                            46,492        43,952
                                                                           --------      --------

            Total liabilities                                                62,214        60,143
                                                                           --------      --------

Shareholders' equity (deficit):
      Warrants                                                                  293           293
      First Series Preferred Shares, no par value, 50 votes per
      share, 3,000,000 authorized, 1,993,694 shares issued
      and outstanding at March 31, 2001 and December 31, 2000                16,770        16,770
      Common stock, no par value, 15,000,000 authorized,
      14,043,600 shares issued and outstanding at March 31,
      2001 and December 31, 2000                                              2,379         2,379
      Accumulated deficit                                                   (11,939)       (9,695)
                                                                           --------      --------
            Total shareholders' equity                                        7,503         9,747
                                                                           --------      --------
            Total liabilities and shareholders' equity                     $ 69,717      $ 69,890
                                                                           ========      ========
</TABLE>



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

                                       3

<PAGE>   4


              JPE, INC. (D/B/A ASCET AND ASC EXTERIOR TECHNOLOGIES)
                 CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
                          AND COMPREHENSIVE OPERATIONS
               For the Three Months Ended March 31, 2001 and 2000
                                   (Unaudited)
                 ($ amounts in thousands, except per share data)


<TABLE>
<CAPTION>
                                                                   2001         2000
                                                                 --------      --------
<S>                                                             <C>           <C>
Net sales                                                        $ 30,379      $ 37,727
Cost of goods sold                                                 27,267        30,922
                                                                 --------      --------

Gross profit                                                        3,112         6,805
Selling, general and administrative expenses                        4,351         5,000
Other expenses (income)                                              --              (2)
Interest expense, net                                                 949         1,213
                                                                 --------      --------

Income (loss) from continuing operations before income taxes       (2,188)          594
Income tax expense                                                     56           255
                                                                 --------      --------

Net income (loss)                                                $ (2,244)     $    339
                                                                 ========      ========

Basic earnings (loss) per share:
         Common Shares                                           $  (0.02)     $   0.00
         First Series Preferred Shares                           $  (0.99)     $   0.15
Earnings (loss) per share assuming dilution:
         Common Shares                                           $  (0.02)     $   0.00
         First Series Preferred Shares                           $  (0.99)     $   0.15
</TABLE>







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


                                       4
<PAGE>   5


              JPE, INC. (D/B/A ASCET AND ASC EXTERIOR TECHNOLOGIES)
            CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY
                    For the Three Months Ended March 31, 2001
                                   (Unaudited)
                            ($ amounts in thousands)


<TABLE>
<CAPTION>
                                                                      NET LOSS FOR THE
                                                   BALANCES AT          THREE MONTHS
                                                  DECEMBER 31,        ENDED MARCH 31,          BALANCES AT
                                                      2000                  2001             MARCH 31, 2001
                                                  --------------     -------------------     ----------------
<S>                                               <C>                <C>                    <C>
Common Stock:
Shares Outstanding                                   14,043,600                                 14,043,600
Amount                                              $     2,379                               $      2,379

First Series Preferred Shares:
Shares Outstanding                                    1,993,694                                  1,993,694
Amount                                              $    16,770                               $     16,770

Warrants:
Warrants Outstanding                                    422,601                                    422,601
Amount                                              $       293                               $        293

Accumulated deficit                                 $    (9,695)        $    (2,244)          $    (11,939)
                                                    -----------         -----------           ------------

Total Shareholder Equity                            $     9,747         $    (2,244)          $      7,503
                                                    ===========         ===========           ============
</TABLE>





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


                                       5
<PAGE>   6


              JPE, INC. (D/B/A ASCET AND ASC EXTERIOR TECHNOLOGIES)
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                      For the Three Months ended March 31,
                                   (Unaudited)
                            ($ amounts in thousands)


<TABLE>
<CAPTION>
                                                                              2001          2000
                                                                            --------      --------
<S>                                                                        <C>          <C>
Cash flows from operating activities:
     Net income (loss)                                                      $ (2,244)     $    339
     Adjustments to reconcile net income (loss) to net cash provided by
     (used for) operating activities:
         Depreciation and amortization                                         1,006           930
         Changes in operating assets and liabilities:
              Accounts receivable                                             (2,242)       (1,014)
              Inventory                                                        2,566           525
              Other current assets                                              (912)           27
              Accounts payable                                                  (391)        1,074
              Accrued liabilities and income taxes                              (129)        1,103
                                                                            --------      --------
         Net cash provided by (used for) operating activities                 (2,346)        2,984

Cash flows from investing activities:
     Purchase of property and equipment                                         (213)         (274)
     Other                                                                        19           (79)
                                                                            --------      --------
         Net cash used for investing activities                                 (194)         (353)

Cash flows from financing activities:
     Net payments under demand notes                                         (12,426)       (2,905)
     Net borrowing under subordinated debt                                    15,000          --
     Repayments of other debt                                                    (54)          (27)
                                                                            --------      --------
         Net cash provided by (used for) financing activities                  2,520        (2,932)

Cash and cash equivalents:
     Net decrease in cash                                                        (20)         (301)
     Cash, beginning of period                                                   196           639
                                                                            --------      --------
     Cash, end of period                                                    $    176      $    338
                                                                            ========      ========
</TABLE>





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


                                       6

<PAGE>   7


            JPE, INC. (D/B/A ASCET INC AND ASC EXTERIOR TECHNOLOGIES)
         NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)
                    (amounts in thousands, except share data)

A.       BASIS OF PRESENTATION:

         The accompanying unaudited condensed consolidated financial statements
         of JPE, Inc. (d/b/a ASCET INC and ASC Exterior Technologies (together
         with its subsidiaries, the "Company")) 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 accruals) considered
         necessary for a fair presentation have been included. Operating results
         for the periods presented are not necessarily indicative of the results
         that may be expected for the year ended December 31, 2001. These
         financial statements should be read in conjunction with the Company's
         consolidated financial statements and footnotes for the year ended
         December 31, 2000.

         The balance sheet at December 31, 2000 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 Company's and Subsidiaries'
         annual report on Form 10-K for the year ended December 31, 2000.

         On May 27, 1999 in accordance with the terms of an Investment Agreement
         (the "Investment Agreement") among JPE, Inc., ASC Holdings LLC ("ASC")
         and Kojaian Holdings LLC ("Kojaian") dated April 28, 1999 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 and Kojaian for
         an aggregate purchase price of $16,413 payable in cash. Each First
         Series Preferred Share possesses voting and equity rights equal to 50
         common shares of the Company. In addition, the Investment Agreement
         provided that the shareholders of record of JPE, Inc. common stock on
         June 11, 1999 (the "Record Date") were entitled to receive warrants to
         purchase First Series Preferred Shares (the "Warrants"). Each holder of
         common stock received .075 Warrants for each share of common stock held
         on the record date, and each full Warrant entitled the holder to
         purchase one First Series Preferred Share. The Warrants were
         distributed as a dividend to such shareholders. 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 (as
         defined in the Investment Agreement) and the cost of certain
         environmental remediation for a 24 month period occurring after the
         consummation of the Investment Agreement. 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.

         In addition, 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 $1,987 payable in cash. These newly
         issued shares of common stock were distributed to ASC and Kojaian on
         June 12, 1999.

         As a precondition to the consummation of the Investment Transaction,
         the Company's existing bank lenders (the "Bank Group") agreed on May
         27, 1999 to a $16,500 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 Preferred Stock to the Bank Group on May 27, 1999 for $1 of
         consideration. In addition, the Company granted the Bank Group
         77,437.937 Warrants (which Warrants contain the same terms and
         conditions as granted to the shareholders of common stock of the
         Company on the Record Date, except the exercise price for each First
         Series Preferred Share is approximately $8.16 per share.)

         The immediate effect of these transactions transferred (a)
         approximately 47.5% of the voting securities of the Company to Kojaian,
         (b) approximately 47.5% of the voting securities of the Company to ASC,
         and (c) approximately 1% of the voting securities of the Company to the
         Bank Group (these transactions are hereafter referred to as the
         "Investment Transaction"). The remaining amount of the voting
         securities continues to be held by the public shareholders of the
         Company and the Bank Group. Thus, as of


                                       7
<PAGE>   8
            JPE, INC. (D/B/A ASCET INC AND ASC EXTERIOR TECHNOLOGIES)
         NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)
                    (amounts in thousands, except share data)


         December 29, 1999 each of ASC and Kojaian beneficially owned
         approximately 95% of the voting securities of the Company, and after
         the exercise of all of the Warrants, would have beneficially owned
         approximately 80% of the voting securities of the Company.

         Pursuant to the terms of a letter agreement (the "Letter Agreement")
         dated August 30, 1999 among ASC and the sole member of ASC (Heinz C.
         Prechter) and Kojaian and the members of Kojaian (Mike Kojaian and C.
         Michael Kojaian ), Heinz C. Prechter agreed to purchase (through ASC or
         otherwise) 4,720,710 common shares and 976,176.095 First Series
         Preferred Shares of JPE, Inc. from Kojaian for $9,200. The Letter
         Agreement was subject to the conditions precedent of (i) obtaining the
         consent of Comerica Bank, the Company's post-Investment Transaction
         lender, and (ii) the termination of the applicable waiting period under
         the Hart-Scott-Rodino Act. On December 30, 1999, the last of the
         conditions precedent was fulfilled, and on such date the Letter
         Agreement was consummated.

         Upon consummation of the Letter Agreement, ASC directly and Heinz C.
         Prechter, indirectly through ASC, owned a total of 9,441,420 common
         shares and 1,952,353.19 First Series Preferred Shares of JPE, Inc.,
         constituting approximately 95% of the beneficial interests of the
         Company. In addition, the Shareholders Agreement dated May 27, 1999
         which included provisions, addressing among other things, the
         nomination, election, and voting of members to the Board of Directors,
         was terminated upon the execution of the Letter Agreement.

         In connection with the closing of the Investment Transaction on May 27,
         1999, the Company entered into a Consulting Services Agreement with ASC
         which requires payment of $250 annually, payable monthly, for
         consulting services provided by ASC with respect to various business,
         operating, management, and financial matters. In addition, the Company
         is required to pay ASC an additional fee equal to 2% of the excess of
         the final EBITDA over the targeted EBITDA (both defined in the
         Investment Agreement) for the 24 month period ending after the
         acquisition date.

         On July 1, 2000 the Company paid $1 plus other remuneration described
         below, to purchase certain assets and liabilities of MB Associates,
         Inc. ("MB"). MB was the exclusive sales representative for the
         Company's Trim Products Group. Prior to July 1, 2000, commission
         expenses were recorded by the Company's Trim Products Group as selling,
         general and administrative expenses. In connection with the purchase of
         MB, the Company entered into consulting and/or employment agreements
         with certain former owners and key members of MB's management team.
         Under the terms of these agreements, the Company paid an aggregate of
         $358 at closing and executed notes payable in the aggregate amount of
         $1,463. These notes require three payments of $488 due on June 30 of
         each of 2001, 2002 and 2003. In addition, the Company issued First
         Series Preferred Shares which shares are equal in value to $180 as a
         signing bonus for the individuals who became employees of the Company.

         Due to the events described above, the consolidated financial
         statements for periods prior to July 1, 2000, are not necessarily
         comparable to the consolidated financial statement presented after that
         date. JPE, Inc. is now operating under the assumed names of ASCET INC
         and ASC Exterior Technologies.

B.       INVENTORY:

         Inventories by component are as follows:

<TABLE>
<CAPTION>
                                           MARCH 31, 2001          DECEMBER 31, 2000
                                           --------------          -----------------
<S>                                       <C>                      <C>
         Finished goods                       $   11,081               $    12,148
         Work in process                           1,507                     1,698
         Raw material                              4,770                     5,413
         Tooling                                   2,345                     3,010
                                              -----------              ------------
                                              $   19,703               $    22,269
                                              ===========              ============
</TABLE>


                                       8
<PAGE>   9
            JPE, INC. (D/B/A ASCET INC AND ASC EXTERIOR TECHNOLOGIES)
         NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)
                    (amounts in thousands, except share data)

C.       PROPERTY, PLANT AND EQUIPMENT:

         Property, plant and equipment by component is as follows:

<TABLE>
<CAPTION>
                                                               MARCH 31, 2001          DECEMBER 31, 2000
                                                               --------------          -----------------
<S>                                                            <C>                     <C>
         Land                                                     $    706                 $    706
         Buildings                                                   5,503                    5,496
         Machinery and equipment                                    21,076                   20,871
         Furniture and fixtures                                      1,372                    1,372
                                                                  --------                 --------
                                                                    28,657                   28,445
              Less accumulated depreciation                         (5,664)                  (4,863)
                                                                  --------                 --------
                                                                  $ 22,993                 $ 23,582
                                                                  ========                 ========
</TABLE>

D.       ACCRUED LIABILITIES AND OTHER CURRENT LIABILITIES:

         Accrued liabilities and other current liabilities consisted of the
         following:

<TABLE>
<CAPTION>
                                                               MARCH 31, 2001          DECEMBER 31, 2000
                                                               --------------          -----------------

<S>                                                            <C>                      <C>
         Accrued compensation                                     $   495                  $   496
         Accrued interest                                             312                      359
         Accrued employee benefits                                  1,174                    1,609
         Accrued taxes                                              1,229                    1,041
         Other                                                        996                      814
                                                                  -------                  -------
                                                                  $ 4,206                  $ 4,319
                                                                  =======                  =======
</TABLE>

E.       DEBT:

         Debt consisted of the following:

<TABLE>
<CAPTION>
                                                             MARCH 31, 2001       DECEMBER 31, 2000
                                                             --------------       -----------------

<S>                                                           <C>                      <C>
        Revolving Credit Facility-Comerica Bank                  $ 30,448                 $ 42,874
        Notes Payable-MB purchase                                   1,464                    1,464
        Capitalized lease obligations                                 145                      193
        Subordinated demand note                                   15,000                       --
        Other                                                          26                       32
                                                                 --------                 --------
                                                                 $ 47,083                 $ 44,563
        Less:  Current portion                                        591                      611
                                                                 --------                 --------
                                                                 $ 46,492                 $ 43,952
                                                                 ========                 ========
</TABLE>

         During the year 2000 and through February 6, 2001, the Company's source
         of funding was a $56,300 revolving credit demand loan from Comerica
         Bank. On February 7, 2001, the Company entered into a new $33,000
         revolving credit facility with Comerica Bank (the "Comerica Facility")
         which matures February 1, 2003. Concurrent with the execution of the
         Comerica Facility, the Company received a $15,000 subordinated demand
         loan from ASC Incorporated which repaid $15,000 of the Company's
         $56,300 demand loan from Comerica Bank.


                                       9



<PAGE>   10

            JPE, INC. (D/B/A ASCET INC AND ASC EXTERIOR TECHNOLOGIES)
         NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)
                    (amounts in thousands, except share data)


E.       DEBT, continued:

         The new Comerica Facility provides for borrowing options at a prime
         based rate or Eurodollar rate plus various interest rate margins
         dependent upon the Company's financial performance beginning January 1,
         2002. Advances are subject to a borrowing base restriction equal to 85%
         of eligible OEM trade receivables, 80% of all other eligible trade
         receivables, 50% of eligible inventory (up to $9,000), plus an
         overformula amount of $10,000. The overformula amount is scheduled to
         amortize over a four year period beginning September 1, 2001, with the
         initial reduction of $1,000. All advances are fully secured by the
         Company's net assets.

         Required covenants under the Comerica Facility include submission of
         monthly and annual financial statements and annual financial
         projections during a prescribed period. Quarterly financial covenants
         include an interest expense coverage ratio for 2001 to date performance
         commencing September 30, 2001, and a Funded Debt to EBITDA coverage
         ratio as of no greater than 5 to 1 as of December 31, 2001. Both
         covenants exclude the effect of the $15,000 subordinated demand note
         from ASC Incorporated. In addition, the payment of dividends is
         prohibited by the terms of the Comerica Facility.

         The Company's $15,000 subordinated demand note to ASC Incorporated
         dated February 7, 2001 is subordinated as to creditor rights and
         security to the Comerica Facility. Interest is payable monthly
         commencing March 1, 2001 at ASC Incorporated's cost of borrowing. ASC
         Incorporated has agreed not to call the note through at least April 1,
         2002. Further, the Comerica Facility prohibits any payments to ASC
         Incorporated at non-arm's length amounts without prior consent.

         In addition, notes payable of the Company includes $1,464 due to the
         former owner of MB Associates, executed in connection with the purchase
         of MB Associates on July 1, 2000 (see Note A). These notes payable
         require three payments of $488 on June 30 of 2001, 2002 and 2003. The
         notes payable are non-interest bearing and are guaranteed by ASC
         Holdings LLC.

         The Company has used the payment terms of the new Comerica Facility to
         classify its debt maturities as of December 31, 2000.

         During the year 2000, the Company supplemented any funding inadequacies
         by advances from a $3,000 subordinated demand note dated August 23,
         1999 with ASC Incorporated. Such advances were unsecured and
         subordinated to advances from Comerica Bank. Interest accrued at prime
         plus 1 1/2% and was payable quarterly. As of December 31, 2000, there
         were no advances outstanding under this note.

         In addition, on January 24, 2001, an additional Subordinated Demand
         Revolving Credit Note for $1,500 was executed with ASC Incorporated to
         satisfy the Company's need for additional funds during January 2001,
         just prior to the execution of the Comerica Facility. This additional
         $1,500 Note carried identical terms to the Company's previous $3,000
         Subordinated Demand Note with ASC Incorporated. On February 7, 2001,
         concurrent with the execution of the Comerica Facility, the Company
         entered into a new $3,000 Revolving Line of Credit Note with ASC
         Incorporated. This Note is subordinated to the Company's borrowings and
         advances under the Comerica Facility and bears interest at a rate equal
         to the cost of borrowing of ASC Incorporated. As of March 31, 2001,
         there were no advances outstanding under this note.

F.       WARRANTS TO ACQUIRE PREFERRED STOCK:

         The Investment Agreement provides that the shareholders of record of
         JPE, Inc. common stock on June 11, 1999 (the "Record Date") were
         entitled to receive warrants (the "Warrants") entitling the holder with
         the right to purchase .075 First Series Preferred Shares of the Company
         for each share of common stock held on the Record Date. Each full
         warrant entitles the holder to purchase one First Series Preferred
         Share. 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 (as defined in the Investment Agreement) and the cost of


                                       10

<PAGE>   11
            JPE, INC. (D/B/A ASCET INC AND ASC EXTERIOR TECHNOLOGIES)
         NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)
                    (amounts in thousands, except share data)


F.       WARRANTS TO ACQUIRE PREFERRED STOCK, continued:

         certain environmental remediation for the 24 month period from the date
         of the consummation of the Investment Transaction. 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.

         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. If the exercise price of the Warrants is reduced by achieving
         an EBITDA amount in excess of target EBITDA of $34,300, 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.

G.       INCOME TAXES:

         The Company's 3% effective tax rate for the three months ended March
         31, 2001 is computed at regular tax rates, and reflects the Company's
         inability to deduct amortization expense of goodwill associated with
         the Investment Transactions, as well as state income taxes related to
         the Company's profitable locations.

         A reconciliation to the U.S. federal statutory tax rate is as follows:
<TABLE>
<S>                                                                       <C>
                Statutory U.S. federal tax rate                            (34%)
                State taxes, net of federal tax benefit                      1
                Nondeductible Goodwill amortization and other expenses       1
                Foreign tax rate in excess of U.S. rate                      1
                Increase in valuation reserve                               34
                                                                          -----
                                                                             3%
                                                                          =====
</TABLE>

         Deferred tax assets of approximately $11,100 have been reduced by a
         $8,700 valuation reserve, and deferred tax liabilities of $2,400 have
         been recorded. If in subsequent years, the initial valuation reserve
         related to the May 27, 1999 deferred tax assets (the date of the
         Investment Transaction) can be reduced, the effect will be to reduce
         goodwill before any benefit is realized in the Consolidated Statement
         of Operations.

H.       EARNINGS PER SHARE:

         The issuance of the First Series Preferred Shares resulted in the
         Successor Company 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 of stock. Based on the
         participating rights of the First Series Preferred Shares as of March
         31, 2001, approximately 87.6% of the earnings will be allocated to
         these shares and 12.4% of earnings to the common stock. Shares
         outstanding for the computation of basic earnings per share were
         14,043,600 common shares as of March 31, 2000, and March 31, 2001. The
         First Series Preferred Shares outstanding were 1,973,002 shares as of
         March 31, 2000 and 1,993,694 shares outstanding as of March 31, 2001.
         Earnings per share assuming dilution requires the Company to use the
         treasury method for stock options and warrants. Options for common
         shares 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 had no effect on the denominator in the earnings per
         share calculation for the three months ended March 31, 2001 as the
         effect would be antidilutive. The Warrants for the First Series
         Preferred Shares had the effect of increasing the denominator in the
         earnings per share calculation by 53,726 shares and 39,673 shares for
         the three months ended March 31, 2000, and March 31, 2001,
         respectively.

                                       11

<PAGE>   12

            JPE, INC. (D/B/A ASCET INC AND ASC EXTERIOR TECHNOLOGIES)
         NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)
                    (amounts in thousands, except share data)


I.       SEGMENT INFORMATION:

         Since the date of the Investment Transaction, May 27, 1999, the Company
         manages and reports its operating activities under two segments, Trim
         Products and Truck and Automotive Replacement Parts. The Trim Products
         segment consists of decorative and functional exterior trim sold to
         original equipment manufacturers ("OEM's"). The Truck and Automotive
         Replacement Parts segment consists of heavy-duty vehicle undercarriage
         parts and brake systems for the automotive industry.

         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 operating income. Segment profit
         is defined as sales minus cost of goods sold and selling, general and
         administrative expenses. Other charges relate to non-recurring expense
         and income items.

         Information by operating segment for the three months ended March 31,
         2001 and 2000 is summarized below:


<TABLE>
<CAPTION>
                                                                             For The Three Months Ended March 31,
                                                                             ------------------------------------
                                                                             Trim         Replacements
                                                                           Products          Parts           Total
                                                                           --------          -----           -----
<S>                                                                     <C>             <C>               <C>
         Sales to unaffiliated customers
              2001                                                       $    16,961     $    13,418       $    30,379
              2000                                                            24,890          12,837            37,727

         Segment profit (loss)
              2001                                                       $      (667)    $       759       $        92
              2000                                                             1,853             714             2,567

         Other charges (income)
              2001                                                       $        --     $        --       $        --
              2000                                                                (2)             --                (2)

         Depreciation and amortization
              2001                                                       $       599     $       198       $       797
              2000                                                               686             233               919

         Segment assets
              March 31, 2001                                             $    37,977     $    27,124       $    65,101
              December 31, 2000                                               39,392          25,870            65,262

         Expenditures for segment assets
              2001                                                       $       195     $        18       $       213
              2000                                                               182              92               274
</TABLE>


                                       12
<PAGE>   13
            JPE, INC. (D/B/A ASCET INC AND ASC EXTERIOR TECHNOLOGIES)
         NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                   (Unaudited)
                    (amounts in thousands, except share data)


I.       SEGMENT INFORMATION, continued:

         A reconciliation of segment profit for reportable segments to income
         (loss) before taxes is as follows:

<TABLE>
<CAPTION>
                                                                      For the Three Months Ended March 31,
                                                                      ------------------------------------
                                                                          2001                    2000
                                                                          ----                    ----
<S>                                                                   <C>                  <C>
         Segment profit                                                   $     92               $   2,567
         Other income                                                           --                       2
         Corporate expense                                                  (1,331)                   (762)
         Interest expense                                                     (949)                 (1,213)
                                                                          ---------               ---------

         Income (loss) before taxes                                       $ (2,188)               $    594
                                                                          =========               =========
</TABLE>

         A reconciliation of segment assets to consolidated assets is as
         follows:

<TABLE>
<CAPTION>
                                                                      March 31, 2001        December 31, 2000
                                                                      --------------        -----------------
<S>                                                                   <C>                  <C>
         Segment assets                                                   $ 65,101                $ 65,262
         Corporate assets                                                    4,616                   4,628
                                                                          ---------               ---------
                                                                          $ 69,717                $ 69,890
                                                                          =========               =========
</TABLE>

J.       SUBSEQUENT EVENTS:

         A management employee of the Company, who previously executed a
         non-compete agreement in connection with the purchase of the net assets
         of MB Associates, left the employ of the Company. The Company,
         recognized a charge to net income from operations of $338 during April
         2001, when the former employee's non-compete obligation was cancelled.

         A customer of the Company's aftermarket operations filed for bankruptcy
         court protection from its creditors on May 7, 2001. The Company is
         assessing the financial impact of this filing on its second quarter
         2001 financial statements. As of the date of the bankruptcy filing,
         amounts due to the Company by this customer totaled $410.


                                       13
<PAGE>   14



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
GENERAL AND RECENT INFORMATION

JPE, Inc. (together with its subsidiaries, the "Company"), through its three
operating subsidiaries, Dayton Parts, Inc. (DPI), Starboard Industries, Inc.
(SBI) and Plastic Trim, Inc. (PTI) manufactures and distributes automotive and
truck components to original equipment manufacturers ("OEMs") and to the
aftermarket.

The Company had 2000 annual revenues of approximately $139,000 and total assets
of approximately $70,000. JPE, Inc. is now operating under the assumed names of
ASCET INC and ASC Exterior Technologies. PTI now operates under the assumed
names of ASC Exterior Technologies - Dayton and ASC Exterior Technologies -
Beavercreek. SBI now operates under the assumed name of ASC Exterior
Technologies - East Tawas.

RESULTS OF OPERATIONS

Managements' discussion and analysis of the results of operations for the three
months ended March 31, 2001 compared to the three months ended March 31, 2000 is
as follows:

THREE MONTHS ENDED MARCH 31, 2001 COMPARED TO THREE MONTHS ENDED MARCH 31, 2000

Net sales for the quarter ended March 31, 2001 and 2000 were as follows (in
thousands):

<TABLE>
<CAPTION>
                                                   2001                       2000
                                                   ----                       ----
<S>                                              <C>                       <C>
Trim Products                                    $ 16,961                  $ 24,890
Replacement Parts                                  13,418                    12,837
                                                 ---------                 ---------

Total                                            $ 30,379                  $ 37,727
                                                 =========                 =========
</TABLE>

The decrease in Trim Products Segment sales of $7,929, or 31.9%, is the result
of a revenue reduction related to the completion of product programs for which
the Company was not awarded replacement business, as well as a decrease in
customer orders in the first quarter of 2001 caused by the economic downturn,
and customer required price concessions. The sales increase in the Replacement
Part Segment of $581, or 4.5% is attributable to an increase in heavy duty truck
repair orders.

Gross profit was $3,112, or 10.2% of sales for the three months ended March 31,
2001 compared to $6,805, or 18.0% of sales, for the same quarter last year.

The gross profit by segment is as follows (in thousands):

<TABLE>
<CAPTION>
                                                 2001                     2000
                                                 ----                     ----
<S>                                           <C>                       <C>
Trim Products                                 $  (129)                  $ 3,618
Replacement Parts                               3,241                     3,187
                                              --------                  --------

Total                                         $ 3,112                   $ 6,805
                                              ========                  ========
</TABLE>

The gross profit percentage for the Trim Products Segment was (.8)% and 14.5%
for the quarters ended March 31, 2001 and 2000, respectively. The decrease in
the gross profit percentage was attributable to sales volume declines


                                       14
<PAGE>   15

and the effect on overhead absorption costs, continued higher scrap rates,
increased freight costs, third party quality inspection costs, and lower labor
efficiencies at the Dayton, Ohio operation. During the quarter, management
continued to address these issues by implementing staff reductions and intensive
quality control improvement measures.

The gross profit as percentage of sales for the Replacement Parts Segment was
24.2%, compared to 24.8% for the three months ended March 31, 2001 and 2000,
respectively, and reflects pricing discounts offered to customers during the
quarter and sales of lower margin products.

Selling, general and administrative (SGA) expenses for the three months ended
March 31, 2001 were $4,351 or 14.3% of sales compared to $5,000 or 13.3% of
sales for the quarter ended March 31, 2000. Detail of SGA expenses, for the
three months ended March 31, 2001 are as follows (in thousands):

<TABLE>
<CAPTION>
                                                   2001                     2000
                                                   ----                     ----
<S>                                            <C>                     <C>
Trim Products                                  $      538              $    1,765
Replacement Parts                                   2,482                   2,473
Corporate                                           1,331                     762
                                               -----------             -----------
Total                                          $    4,351              $    5,000
                                               ===========             ===========
</TABLE>

SGA expense for the Trim Products Segment was $538 or 3.2% of sales for the
quarter ended March 31, 2001, compared to $1,765 or 7.1% of sales for the
quarter ended March 31, 2000. The lower percentage is primarily attributable to
the elimination of the sales commission to MB Associates of $594 as a result of
the purchase of its assets and liabilities on July 1, 2000 and the inclusion of
these salaries and administrative expenses as Corporate expenses. Without this
change, SGA expense for the Trim Products Segment would have been $1,132 or 6.7%
of sales for the quarter ended March 31, 2001, and reflects staff reductions
made during the quarter.

The Replacement Parts Segment's SGA expenses were $2,482 or 18.5% of sales and
$2,473 or 19.3% of sales for the three months ended March 31, 2001 and 2000,
respectively. In the Replacement Parts Segment, management reduced its costs to
keep pace with diminished revenues resulting from the industry decline during
2000.

Corporate administrative costs for the three months ended March 31, 2001 and
2000 were $1,331 and $762, respectively. The increase in corporate
administrative costs reflect program management fees and product development
costs related to the Company's Trim Products Segment together with the addition
of MB Associates salaries and administration costs resulting from the purchase
of MB Associates on July 1, 2000.

Interest expense for the three months ended March 31, 2001 was $949, compared to
$1,213 for the quarter ended March 31, 2000. The reduction in interest expense
reflects lower borrowing costs of the new bank credit facility, which was
executed February 7, 2001, as well as a reduction in total bank borrowings due
to the subordinated debt funding, which carries a lower interest rate than bank
borrowings.

The Company's effective tax rate of 3% for the three months ended March 31,
2001, reflects regular tax rates and the Company's inability to deduct
amortization expense of goodwill associated with the Investment Transaction, as
well as state income taxes related to the Company's profitable locations.

LIQUIDITY AND CAPITAL RESOURCES

During the year 2000 and through February 6, 2001, the Company's principal
source of liquidity was a $56,300 demand loan from Comerica Bank which was
available to fund daily working capital needs in excess of internally generated
funds. On February 7, 2001, the Company entered into a new $33,000 revolving
credit facility with Comerica Bank (the "Comerica Facility") which matures
February 1, 2003. Concurrent with the execution of this Comerica Facility, the
Company received a $15,000 subordinated demand loan from ASC Incorporated which
repaid $15,000 of the Company's $56,300 demand loan from Comerica Bank.


                                       15

<PAGE>   16

In connection with the Comerica Facility, the Company has signed a promissory
note in the amount of $33,000, providing for borrowing options at a prime based
rate or Eurodollar rate plus various interest rate margins dependent upon the
Company's financial performance beginning January 1, 2002. For 2001 and through
March 31, 2002, the Company's margin on prime based loans and Eurodollar loans
is 1/4% and 2 1/4%, respectively. Eurodollar borrowings for 1 month to 6 months
are permitted at the option of the Company. Advances under the Comerica Facility
are subject to a borrowing base restriction equal to 85% of eligible OEM trade
receivables, 80% of all other eligible trade receivables, 50% of eligible
inventory (up to $9,000), plus an overformula amount of $10,000. The overformula
amount is scheduled to amortize over a four year period beginning September 1,
2001, with the initial reduction of $1,000. All advances are fully secured by
the Company's net assets.

Required covenants under the Comerica Facility include submission of monthly and
annual financial statements and annual financial projections during a prescribed
period. Quarterly financial covenants include an interest expense coverage ratio
for 2001 to date performance commencing September 30, 2001, and a Funded Debt to
EBITDA coverage ratio no greater than 5 to 1 as of December 31, 2001. Both
covenants exclude the effect of the $15,000 subordinated demand note from ASC
Incorporated. In addition, the payment of dividends is prohibited by the terms
of the Comerica Facility.

The Company's $15,000 subordinated demand note to ASC Incorporated dated
February 7, 2001 is subordinated as to creditor rights and security to the
Comerica Facility. Interest is payable monthly commencing March 1, 2001 at ASC
Incorporated's cost of borrowing. ASC Incorporated has agreed not to call the
Note through at least April 1, 2002. Further, the Comerica Facility prohibits
any payments to ASC Incorporated at non arm's length amounts, without prior
consent

Borrowings at March 31, 2001, under the Comerica Facility were $30,400, with
unused borrowing capacity of $1,400. Together with internally generated cash
flow, the Company believes the Comerica Facility is adequate to provide working
capital funding during the course of the year, except in the event of a
sustained cyclical downturn in the automotive industry.

On January 24, 2001, just prior to the Company entering into the new Comerica
Facility, an additional Subordinated Demand Revolving Credit Note for $1,500 was
executed with ASC Incorporated to satisfy the Company's need for additional
funds during January 2001. This additional $1,500 Note carried identical terms
to the Company's previous $3,000 Subordinated Demand Note with ASC Incorporated.
On February 7, 2001, concurrent with the execution of the Comerica Facility, the
Company entered into a new $3,000 Revolving Line of Credit Note with ASC
Incorporated. This Note is subordinated to the Company's borrowings and advances
under the Comerica Facility and bears interest at a rate equal to the cost of
borrowing of ASC Incorporated.

ITEM 3.       QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

MARKET RISK

The Company has experienced lower sales volumes during the last quarter of 2000
and throughout the first quarter of 2001, as a result of a general softening of
the U.S. economy, and has been affected by pressures from the Company's largest
customers for price concessions. The Company expects automotive industry
conditions for 2001 to be consistent with this recent experience. Although most
underlying fundamentals remain strong, the impact of the OEM vehicle
manufacturers to rebalance inventories and the trend of retail sales and other
uncertainties may adversely impact the Company's 2001 financial performance.

Furthermore, in the normal course of business the Company is subject to market
exposures from changes in interest rates. The Company's variable interest
expense is sensitive to changes in the general level of United States and
European interest rates. The Company's March 31, 2001 Comerica bank debt
represents borrowings at the bank's prime rate plus 1/4% or Eurodollar rates
plus 2 1/4%. Interest expense on the Company's $15,000 subordinated debt to ASC
Incorporated is based on ASC's actual cost of borrowing which fluctuates based
on rates charged ASC by commercial lenders. As such, future borrowings for the
Company are sensitive to changes in interest rates. At March 31, 2001, the
weighted average interest rate of the $30,400 Comerica Debt and the Company's
$15,000 Subordinated Debt to ASC Incorporated was 8.78% and the fair value of
the debt approximates its carrying value.


                                       16
<PAGE>   17

The Company had interest expense of $949 for the three months ended March 31,
2001. The potential increase in interest expense from a hypothetical 2% adverse
change, assuming the March 31, 2001 Company's total debt was outstanding for the
entire year, would be $908.

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 original equipment manufacturer's ("OEM") programs; (iii)
cyclical consumer demand for new vehicles; (iv) competition in pricing and new
product development from larger companies with substantially greater resources;
(v) the concentration of a substantial percentage of the Company's sales with a
few major OEM customers; and (vi) labor relations at the Company and its
customers and suppliers.


                                       17
<PAGE>   18


                           PART II. OTHER INFORMATION

              JPE, INC. (D/B/A ASCET AND ASC EXTERIOR TECHNOLOGIES)


ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

             A.   EXHIBITS:

                           None

             B.   REPORT ON FORM 8-K:

                           None




                                       18
<PAGE>   19


           JPE, INC. (D/B/A ASCET INC AND ASC EXTERIOR TECHNOLOGIES)

                                    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 and ASC Exterior Technologies


                           By:      /s/ Robert A. Naglick
                                ------------------------------
                                    Robert A. Naglick
                                    Vice President and Chief Financial Officer
                                    (Principal Accounting Officer)

Date:  May 11, 2001



                                       19