================================================================================

                    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
                  September 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  September  30, 1999,  there were  14,043,600  shares of the  registrant's
common stock outstanding.  This Quarterly Report on Form 10-Q contains 24 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) .........3
               - At September 30, 1999 and 1998
               - At December 31, 1998

               Consolidated Condensed Statements of Operations
                and Comprehensive Operations (Unaudited) .....................4
               - For ASCET INC for the Three months ended
                 September 30, 1999 and for the
                 Predecessor Company for the Three
                 Months Ended September 30, 1998
               - For the Predecessor Company for the .........................5
                 Period From January 1, 1999 Through
                 May 27,  1999 and for ASCET INC for the Period From
                 May 28, 1999 Through September 30, 1999 and for the
                 Predecessor  Company  for  the  Nine  Months  Ended
                 September 30, 1998

               Consolidated Condensed Statements of
               Shareholders' Equity (Unaudited) ..............................6
               - For the Nine Months Ended
                 September 30, 1999

               Consolidated Condensed Statements of
               Cash Flows (Unaudited) ........................................7
               - 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
                 September 30, 1999 and for the Predecessor  Company
                 for the Nine Months Ended September 30, 1998

              Notes to Unaudited Consolidated Condensed
              Financial Statements ........................................8-15

     Item 2.  Management's  Discussion  and Analysis of Financial
              Condition and Results of Operations ........................15-22

Part II.   Other Information

     Item 6.    Exhibits and Reports ........................................23

           Signature ........................................................24



<PAGE>



                                          PART I.   FINANCIAL INFORMATION
Item 1. Financial Statements
                                            JPE, INC. (d/b/a ASCET INC)
<TABLE>
                                       CONSOLIDATED CONDENSED BALANCE SHEETS
                                             ($ Amounts in Thousands)

<CAPTION>
                                                                           At September 30,           At Dec. 31,
                                                                         1999            1998            1998
                                                                         ----            ----            ----
                                                                              (Unaudited)              (Note A)
<S>                                                                   <C>            <C>               <C>
         ASSETS
Current assets:
     Cash and cash equivalents                                        $   358         $   408          $   394
     Accounts receivables trade, net                                   20,934          18,968           12,151
     Inventory, net                                                    20,228          26,141           18,572
     Other current assets                                               5,442           3,507            1,413
                                                                       ------         -------           ------

                  Total current assets                                 46,962          49,024           32,530

Investment in affiliated companies                                         --          27,232           14,661
Property, plant and equipment, net                                     30,133          22,138           20,963
Goodwill, net                                                           1,776           7,322            7,458
Other assets                                                              688             761            1,362
                                                                         ----          ------           ------

                  Total assets                                        $79,559        $106,477          $76,974
                                                                      =======        ========          =======

         LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
     Short-term debt and current
       portion of long-term debt                                      $45,130        $104,024          $84,492
     Accounts payable trade                                             8,456          12,049            8,273
     Accrued liabilities and other
         current liabilities                                            3,410           4,140            2,580
                                                                      -------        --------          -------

                  Total current liabilities                            56,996         120,213           95,345

Deferred income taxes and other liabilities                             1,989             --             1,720
Long-term debt, non-current                                               274           1,643               50
                                                                      -------        --------          -------

                  Total liabilities                                    59,259         121,856           97,115
                                                                      -------        --------          -------

Shareholders' equity (deficit):
     Warrants                                                             293              --               --
     First Series Preferred Shares, no par value,
         3,000,000  authorized,  1,973,002  shares  issued  and
         outstanding  at September 30, 1999 and no shares issued
         and outstanding at September 30, 1998 and December 31, 1998   16,590              --               --
     Common stock, no par value, 15,000,000
         authorized,  14,043,600  shares issued and outstanding at
         September 30, 1999 and 4,602,180 issued and outstanding at
         September 30, 1998 and December 31, 1998                       2,355          28,051           28,051
     Accumulated other comprehensive loss                                  --            (336)            (336)
     Retained earnings (accumulated deficit)                            1,062         (43,094)         (47,856)
                                                                        -----         --------         --------

                    Total  shareholders'  equity   (deficit)           20,300         (15,379)         (20,141)
                                                                       ------         -------          -------

                    Total liabilities and shareholders' equity       $ 79,559        $106,477          $76,974
                                                                     ========        ========          =======


                               The  accompanying  notes  are an  integral  part of the
                                   consolidated condensed financial statements.
</TABLE>


<PAGE>


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

<CAPTION>
                                                                  Predecessor
                                               ASCET. INC           Company
                                              Three Months        Three Months
                                                 Ended               Ended
                                              September 30,       September 30,
                                                  1999                1998
                                                 ------               -----
<S>                                              <C>                <C>
Net sales                                        $38,005            $ 40,447
Cost of goods sold                                31,183              36,419
                                                 -------             -------

Gross profit                                       6,822               4,028

Selling, general and administrative expenses       5,009               7,394
Other expense (income)                              (223)              1,369
Affiliate companies' income                           --                (133)
Charges for subsidiaries under
     court ordered protection                                         26,555
Loss on sale of subsidiary                                             5,268
Interest expense, net                              1,166               3,176
                                                   -----              ------

Income (loss) from continuing operations before
     income taxes and extraordinary item             870             (39,601)
Income tax expense (benefit)                         321              (1,582)
                                                     ---              ------
Income (loss) from continuing operations             549             (38,019)
Discontinued operation:
    Income (loss) from operations of IAF              --                (125)
                                                    ----                -----
Net income (loss)                                    549             (38,144)
Other comprehensive expense:
     Foreign currency translation adjustment          --                 (44)
                                                  ------               ------

Comprehensive income (loss)                      $   549            $(38,100)
                                                  ======            =========

Basic  earnings (loss) per share from
     continuing operations:
         Common Shares                             $0.01              $(8.28)
                                                   =====              =======
         First Series Preferred Shares             $0.24              $    --
                                                   =====              =======
Earnings (loss) per share from continuing
     operations assuming dilution:
         Common Shares                             $0.00              $(8.28)
                                                   =====              =======
         First Series Preferred Shares             $0.22              $    --
                                                   =====              =======
Basic earnings (loss) per share:
         Common Shares                             $0.01              $(8.28)
                                                   =====              =======
         First Series Preferred Shares             $0.24              $    --
                                                   =====              =======
Earnings (loss) per share assuming dilution:
         Common Shares                             $0.00              $(8.28)
                                                   =====              =======
         First Series Preferred Shares             $0.22              $    --
                                                   =====              =======


                   The accompanying notes are an integral part
                     of the consolidated condensed financial
                                   statements.
</TABLE>

<PAGE>


                                            JPE, INC. (d/b/a ASCET INC)
<TABLE>
                                  CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                                           AND COMPREHENSIVE OPERATIONS
                                  ($ Amounts in Thousands, Except Per Share Data)
                                                    (Unaudited)
<CAPTION>
                                              Predecessor
                                                Company      ASCET, INC      Predecessor
                                              Period From    Period From       Company
                                            January 1, 1999  May 28, 1999    Nine Months
                                             Through May 27,   Through           Ended
                                                 1999        September 30,   September 30,
                                           Restated (Note A)    1999             1998
                                               ---------        -----            ----
<S>                                             <C>             <C>             <C>
Net sales                                       $23,897         $52,018         $156,460
Cost of goods sold                               17,839          42,204          140,373
                                                 ------          ------          -------
Gross profit                                      6,058           9,814           16,087

Selling, general and administrative expenses      5,244           6,795           21,338
Other expense (income)                              682            (223)           1,556
Affiliate companies' (income) loss               (8,088)                            (133)
Charges for subsidiaries under court ordered
     protection                                                                   29,216
Loss on sale of subsidiary                                                         5,268
Interest expense, net                             2,703           1,550            9,255
                                                 ------           ------         -------

Income (loss) from continuing operations before
     income taxes and extraordinary items         5,517           1,692          (50,413)
Income tax expense (benefit)                        104             630           (1,496)
                                                    ---             ---           ------
Income (loss) from continuing operations
     before extraordinary items                   5,413           1,062          (48,917)
Discontinued operation:
     Income from operations of IAF                   58              --              109
     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)                                21,422           1,062          (48,808)
Other comprehensive expense:
     Foreign currency translation adjustment         --              --              (65)
                                                -------           -----            ------

Comprehensive income (loss)                     $21,422         $ 1,062         $(48,873)
                                                =======          ======         =========

Basic  earnings (loss) per share from
     continuing operations before
     extraordinary items:
         Common Shares                             $0.68           $0.01         $(10.62)
                                                   =====           =====         ========
         First Series Preferred Shares           $    --           $0.47         $     --
                                                 =======           =====         ========
Earnings (loss) per share from continuing
     operations before extraordinary items
     assuming dilution:
         Common Shares                             $0.68           $0.01         $(10.62)
                                                   =====           =====         =======
         First Series Preferred Shares           $    --           $0.42         $    --
                                                 =======           =====         =======
Basic earnings (loss) per share:
         Common Shares                             $0.68           $0.01         $(10.62)
                                                   =====           =====         =======
         First Series Preferred Shares           $    --           $0.47         $    --
                                                 =======           =====         =======
Earnings (loss) per share assuming dilution:
         Common Shares                             $0.68           $0.01         $(10.62)
                                                   =====           =====         =======
         First Series Preferred Shares           $    --           $0.42              --
                                                 =======           =====         =======


                   The accompanying notes are an integral part
                     of the consolidated condensed financial
                                   statements.
</TABLE>

<PAGE>


                                            JPE, INC. (d/b/a ASCET INC)
<TABLE>
                             CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY
                                             ($ Amounts in Thousands)
                                                    (Unaudited)

                                                                 PREDECESSOR COMPANY

<CAPTION>
                                                                                            Net income
                                                                                          for the period           Balances at
                                    Balances at        Foreign            Issuance          January 1 to             May 27,
                                    December 31,       Currency             to the          May 27, 1999               1999
                                         1998         Translation         Bank Group      Restated (Note A)     Restated (Note A)
                                         ----         -----------         ----------      -----------------     -----------------
<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)                                          $ 21,422                $(26,434)
                                        -----------------------------------------------------------------------------------
Total Shareholder Equity                $(20,141)       $ 336                $  231        $ 21,422                $  1,848
                                        ====================================================================================
</TABLE>
<TABLE>


                                                                      ASCET INC
<CAPTION>
                                      Balances at       Predecessor                 Net income
                                        May 27,        Investment  Shareholders  for the period      Balances at
                                          1999            New         Basis        May 28 to        September 30,
                                   Restated (Note A)  Shareholders    Change    September 30, 1999     1999
                                   -----------------  ------------    ------    ------------------     ----
<S>                                <C>                 <C>            <C>         <C>                <C>
Common Stock:
Shares Outstanding                    4,602              9,442                                        14,044
Amount                             $ 28,051            $ 2,287        $(27,983)                      $ 2,355

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)        $(26,434)                          $ 26,434    $1,062             $ 1,062
                                   ---------------------------------------------------------------------------

Total Shareholder Equity           $  1,848            $18,700        $ (1,310)   $1,062             $20,300
                                   ===========================================================================

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

</TABLE>

<PAGE>


                                            JPE, INC. (d/b/a ASCET INC)
<TABLE>
                                  CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                              ($ Amounts in Thousands)
                                                    (Unaudited)
<CAPTION>

                                                              Predecessor
                                                                Company          ASCET, INC    Predecessor
                                                               Period From      From Period      Company
                                                            January 1, 1999    May 28, 1999     Nine Months
                                                             Through May 27,     Through          Ended
                                                                   1999        September 30,   September 30,
                                                            Restated (Note A)     1999             1998
                                                            -----------------     ----             ----
<S>                                                            <C>               <C>              <C>
Cash flows from operating activities:
     Net income (loss)                                         $ 21,422          $ 1,062          $(48,808)
     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            1,231             7,765
           Loss on sale of assets                                 2,549               --             5,268
           Write-down of assets                                      --               --            24,518
           Affiliate companies' income                           (8,088)              --                --
           Other                                                     98              549               559
           Changes in operating assets and liabilities:
           Accounts receivable                                   (2,306)             100             7,202
           Inventory                                                279              171             3,602
           Other current assets                                     924             (197)              405
           Accounts payable                                       2,120           (1,236)           (2,726)
           Accrued liabilities and income taxes                    (617)          (1,745)            1,642
           Deferred income taxes                                      2              549               763
                                                                      -              ---               ---
                  Net cash provided by (used for)
                      operating activities                         (656)             484               190

Cash flows from investing activities:
     Purchase of property and equipment                            (275)            (912)           (2,945)
     Other                                                           --              (50)
     Cash proceeds from sale of Industrial &
         Automotive Fasteners, Inc.                              20,000               --                --
     Cash loaned to equity investees                            (13,980)              --                --
                                                                -------             ----              ----
                  Net cash provided by (used for)
                      investing activities                        5,745             (962)           (2,945)

Cash flows from financing activities:
     Net borrowings under demand notes                               --           45,027                --
     Net borrowings (payments) under revolving loan              (1,742)         (66,257)               62
     Net borrowings under Canadian credit facility                   --               --             3,983
     Repayments of other debt                                        (6)             (48)             (558)
     Issuance of First Series Preferred Shares                        1           16,413                --
     Issuance of common stock                                        --            1,965                --
                                                                  -----            -----              ----
                   Net cash provided by (used for)
                      financing activities                       (1,747)          (2,900)            3,487

     Effect of currency translation on cash                          --               --              (353)
                                                               --------        ---------            -------
Cash and cash equivalents:
     Net increase (decrease) in cash                              3,342           (3,378)              379
     Cash, beginning of period                                      394            3,736                29
                                                                    ---            -----                --

     Cash, end of period                                       $  3,736          $   358          $    408
                                                               ========          =======          =========

                   The accompanying notes are an integral part
               of the consolidated condensed financial statements
</TABLE>



<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 both a normal
         recurring  and  nonrecurring  items  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,  (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,  agreed 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 provided 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 agreed to 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, as of May 27, 1999, each of ASC and Kojaian currently
         beneficially  owned  approximately  95% of the voting securities of the
         Company.

         ASC and Kojaian  terminated the Shareholder's  Agreement on August 30,
         1999  pursuant  to the  terms  of a  letter  agreement  regarding  the
         purchase of JPE, Inc.  Capital  Stock.  The members of ASC,  (Heinz C.
         Prechter),  and the members of Kojaian,  (Mike Kojaian, and C. Michael
         Kojaian),  entered into a letter put agreement dated May 27, 1999 (the
         "Put Agreement").  The Put Agreement  provides that it is contemplated
         that following the consummation of the Investment Transaction,  all of
         DOTT 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  Put  Agreement,  each of Mike
         Kojaian  and C.  Michael  Kojaian  had 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 Transaction (plus interest) if the DOTT Acquisition was not
         consummated  on or before  June 30,  1999  (the  "Put").  Either  Mike
         Kojaian or C.  Michael  Kojaian had the right to exercise the Put from
         any time  beginning on June 30, 1999 and ending on the  thirtieth  day
         following June 30, 1999. The Put Agreement was amended and restated on
         July 27,  1999 to extend  the  exercise  date  from  July 30,  1999 to
         September  15,  1999.  On August 30, 1999 Mike  Kojaian and C. Michael
         Kojaian  and  Heinz  C.  Prechter  entered  into  a  letter  agreement
         regarding the purchase of JPE, Inc.  Capital Stock (the  "Agreement"),
         pursuant  to which  Heinz C.  Prechter  agreed to  purchase  4,720,710
         common shares and  976,176.095  First Series  Preferred  Shares of the
         Company from Kojaian for the purchase  price paid by Kojaian under the
         Investment Transaction (without interest). The Agreement is subject to
         the consent of Comerica Bank, the Company's  lender,  which consent is
         expected to be  forthcoming  no later than the end of November,  1999.
         Assuming  the  consent of  Comerica  Bank,  upon  consummation  of the
         Agreement, ASC directly and Heinz C. Prechter, indirectly through ASC,
         will own a total of 9,441,420  common  shares and  1,952,352.19  First
         Series Preferred Shares of the Company, constituting approximately 95%
         of the beneficial  interests of the Company.  The Agreement supersedes
         all previous  agreements between the parties regarding the purchase of
         such capital stock, including the Put Agreement dated May 27, 1999, as
         amended on July 27, 1999. In addition,  the Agreement  terminated  the
         Shareholders  Agreement  dated  as of May  27,  1999  between  ASC and
         Kojaian.

         In accounting for the transactions under the Investment Agreement,  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,  which  has  been  adjusted  during  the  quarter  ended
         September  30, 1999 to $1.8  million to reflect  payment of  additional
         legal fees and elimination of certain  accruals for estimated  expenses
         as of the closing date, May 27, 1999. In addition, net earnings for the
         Predecessor  Company for the period  January,  through May 27, 1999 has
         been  restated  from  $20,877  thousand to $21,422  thousand to reflect
         these adjustments.

         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.  common  stock on June 11,  1999  (the  "Record  Date")  are
         entitled to receive 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.

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  warrants to purchase  77,437.937  First Series
         Preferred  Shares  (which  contain  the same  terms and  conditions  as
         granted to the shareholder of common stock of the Company on the Record
         Date except the  exercise  price per First Series  Preferred  Share is
         approximately $8.16).

         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  carryforward  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 (see Note F for discussion of
         JPE  Canada  (JPEC)).   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.  In this regard,  the
         Company  utilized the equity  method of  accounting  in  preparing  the
         financial  statements  for these  subsidiaries  for the  quarter  ended
         September 30, 1998. The Company applied the accounting  treatment under
         various  Financial  Accounting  Standards  to write  down the assets of
         these  subsidiaries  to estimated net realizable  value.  The following
         adjustments  were  recorded  to  these  balance  sheet  accounts  as of
         September 30, 1998:


                                              PTI      SBI      JPEC     Total
                                              ---      ---      ----     -----
         Goodwill                           $13,222  $ 5,333   $   --   $18,555
         Fixed assets                         8,000       --       --     8,000
         Accounts receivable                  1,156      350       --     1,506
         Inventory                            1,759       --       --     1,759
         Patents                                 --       --    1,300     1,300
         Loan guarantee                          --       --    1,361     1,361
         Other assets                            --       --      100       100
                                             ------   ------   ------    ------
               Total                        $24,137  $ 5,683   $2,761   $32,581
                                            =======  =======   ======   =======


         These charges have been reflected on the income  statement for the nine
         months ended September 30, 1998 in the following captions:


         Cost of sales                      $ 1,759       --       --   $ 1,759
         Selling, general and administrative  1,156  $   350   $  100     1,606
         Charges for subsidiaries
           under court ordered protection    21,222    5,333    2,661    29,216
                                             ------   ------   ------   -------
             Total                          $24,137   $5,683   $2,761   $32,581
                                            =======   ======   ======   =======


         On  February  25,  1999,  both  PTI  and  Starboard  filed  a  Plan  of
         Reorganization  and Disclosure  Statement with the Court. In connection
         with the Investment  Transaction (see Note A), 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 the  extraordinary  items of forgiveness of debt and
         liabilities  for the  period  January  1  through  May 27,  1999 was as
         follows (amounts in thousands):
<TABLE>
<CAPTION>
                                               PTI            Starboard             Total
                                        Restated (Note A)  Restated (Note A)   Restated (Note A)
         <S>                                 <C>             <C>                  <C>
         Sales                                $33,162          $10,771              $43,933
         Cost of sales                         29,619            8,430               38,049
                                             --------        ---------             --------
         Gross profit                           3,543            2,341                5,884
         Selling, general and
           administrative expense               2,269              591                2,860
         Other reorganization expenses            624              180                  804
                                            ---------        ---------            ---------
         Income before interest,
           taxes and extraordinary items          650            1,570                2,220
         Interest expense                         438              107                  545
         Income tax expense                         1               --                    1
                                             --------        ---------            ---------
         Income (loss) before
           extraordinary items                $   211         $  1,463             $  1,674
                                              =======         ========             ========
</TABLE>

E.       Sale of Allparts, Inc.:

         On October 28, 1998,  the Company  completed the sale of  substantially
         all of the assets of its  wholly-owed  subsidiary,  Allparts,  Inc., to
         R&B,  Inc.  for $10.1  million  and  assumption  of trade  and  accrued
         liabilities of $1.5 million,  for a total sales price of $11.6 million.
         The expenses  related to this  transaction  totaled $242 thousand.  The
         assets of Allparts, Inc. on October 28, 1998 totaled $16.6 million. The
         loss  on the  sale of  Allparts,  Inc.  was  $5.2  million  and the net
         proceeds  of $9.9  million  were  used to pay down  debt.  Revenue  for
         Allparts Inc. for the three months and nine months ended  September 30,
         1998 was $4.6  million and $14 million,  respectively.  Net income from
         operations  for the three  months and nine months ended  September  30,
         1998 was $86 thousand and $257 thousand, respectively.

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.       Discontinued  Operations  and Sale of Industrial & Automotive
         Fasteners, Inc.:

         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's 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,  for the year ended December 31, 1998 was $38.3 million,
         and for the three months and nine months ended  September  30, 1998 was
         $8.7 and $28.8 million, respectively.

H.       Pro Forma Operating Results:

         The following  Unaudited Pro Forma for the Nine Months Ended  September
         30, 1999 and 1998 assumes that the transactions and events described in
         Notes  A  through  G  had  occurred  prior  to  January  1,  1998.  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>

                                                              Nine Months Ended
                                                                 September 30,
                                                                 -------------
                                                             1999
                                                       Restated (Note A)       1998
                                                       -----------------       ----
        <S>                                                 <C>             <C>
         Net sales                                          $119,849        $119,896
         Cost of sales                                        97,569         100,868
         Selling expense                                      14,795          15,481
         Other expense (income)                                 (223)          1,243
         Interest expense                                      3,902           4,379
         Income taxes (benefit)                                1,436            (652)
                                                            --------         -------
         Income (loss) from
           continuing operations                            $  2,370         $(1,423)
                                                            ========         ========
         Basic earnings (loss) per share from
           continuing operations:
                  Common Shares                             $    .02         $  (.01)
                                                            ========         ========
                  First Series Preferred Shares             $   1.05         $  (.63)
                                                            ========         ========
               Earnings (loss) per share assuming dilution:
                  Common Shares                             $    .02         $  (.01)
                                                             =======         ========
                  First Series Preferred Shares             $    .94         $  (.57)
                                                            ========         ========
</TABLE>

I.       Inventory:

         Inventories by component are as follows (amounts in thousands):

                            September 30, 1999  September 30, 1998 Dec. 31, 1998
                            ------------------  ------------------ -------------

         Finished goods           $13,562             $16,616           $13,291
         Work in process            1,513               1,232             1,411
         Raw material               5,153               5,476             1,606
         Tooling                       --               2,817             2,264
                                 --------              ------            ------
                                  $20,228             $26,141           $18,572
                                  =======             =======           =======
J.       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 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  cash
         deposits, trade receivables,  inventory, and personal property, as well
         as  guaranties  from ASC  Holdings  LLC and Kojaian  Holdings  LLC. The
         source of collateral for each is the common shares and preferred shares
         of stock of the Company held by the respective shareholders.

         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 Comerica 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
         Comerica  Facility.  Current borrowings at September 30, 1999 under the
         Comerica  Facility are $45  million.  At  September  30,  1999,  unused
         borrowing capacity under the Company's $30 million demand note was $4.6
         million.

        In addition,  the Company is able to  supplement  any working  capital
        needs not  satisfied  by the  Comerica  Facility  through a $3 million
        demand note dated August 23, 1999 from ASC Incorporated,  an affiliate
        of ASC.  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% and is payable quarterly. As of September
        30, 1999 there were no advances made under this note.

K.       Other Expenses (Income):

         JPE, Inc., the Predecessor  Company,  has included in Other Expense for
         the  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.  For the nine months ended
         September  30, 1999,  Other Income  includes a gain on  settlement of a
         vendor dispute related to the Company's  aftermarket  operations and an
         insurance refund.

L.       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  have the  effect of
         increasing  the  denominator  in the earnings per share  calculation by
         255,435  shares,  275,910  shares and 259,157  shares,  for the periods
         January 1 to September 30, 1999,  May 28 to September 30, 1999 and July
         1 to September 30, 1999, respectively.

         Earnings per share,  prior to the Investment  Transaction  was computed
         based  4,602,180  shares  outstanding  and stock  options had no effect
         assuming dilution.

M.       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  37.2%
         effective  tax  rate for the  post-acquisition  period  May 28  through
         September 30, 1999, represents all periods subsequent to the Investment
         Transaction by ASC Holdings LLC and Kojaian  Holdings LLC,  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 $6.1 million have
         been  reduced by a $3.1  million  valuation  reserve,  and deferred tax
         liabilities  of $2.7  million  have  been  recorded.  If in  subsequent
         periods, the valuation reserve related to the May 27, 1999 deferred tax
         assets can be reduced, the effect will be to reduce goodwill before any
         benefit is realized in the Consolidated Statement of Operations.

N.       Segment Information:

         In 1998, the Predecessor  Company 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.  The
         Predecessor  Company sold its brake systems  segment  during 1998 ( see
         Note E). In 1999,  the  Predecessor  Company also sold a portion of its
         Trim Products segment (see Note F) and its Fasteners  segment (see Note
         G).  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 for the period  January 1, to May 27, 1999 and for
         the three months and nine months ended September 30, 1999 for ASCET INC
         as Successor Company (amounts in thousands):

                                      For The Three Months Ended September 30

                                                 Trim   Replacement
                                               Product     Parts       Total
                                               -------     -----       -----
         Sales to unaffiliated customers
           1999                                $23,707    $14,298   $  38,005
           1998                                $18,861    $21,585   $  40,446

         Segment profit (loss)
           1999                                $ 1,371    $ 1,318   $   2,689
           1998                                $(4,601)   $ 1,807   $  (2,794)

         Segment assets
           September 30, 1999                  $ 47,099   $28,626   $  75,725
           September 30, 1998                  $     --   $53,669   $  53,669

                                      For The Nine Months Ended September 30

                                          Trim     Replacement
                                        Products       Parts          Total
                                        --------       -----          -----
         Sales to unaffiliated customers
           January 1 to May 27, 1999     $   --        $23,897       $   23,897
           May 28 to September 30, 1999  $32,535       $19,483       $   52,018
           1998                          $85,730       $70,729       $  156,459

         Segment profit (loss)
           January 1 to May 27, 1999    $     --       $ 1,266       $   1,266
           May 28 to September 30, 1999 $  2,384       $ 1,745       $   4,129
           1998                         $ (8,072)      $ 5,267       $  (2,805)

         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
                                 Restated (Note A) ASCET INC       Three              Nine
                                     January 1,     May 28,        Months            Months
                                      1999 to       1999 to        Ended             Ended
                                      May 27,     September 30,  September 30,   September 30,
                                       1999           1999          1998              1998
                                       ----           ----          ----              ----
         <S>                           <C>            <C>           <C>               <C>

         Segment profit (loss)         $1,266         $4,129        $ (2,794)         $ (2,805)

         Other income (expense)          (682)           223         (33,192)          (36,040)

         Affiliate companies' income    8,088             --             133               133

         Corporate expense               (452)        (1,110)           (572)           (2,446)

         Interest expense              (2,703)        (1,550)         (3,176)           (9,255)
                                       ------         ------          ------            ------
         Income (loss) from continuing
           operations before taxes
           and extraordinary items     $5,517         $1,692        $(39,601)         $(50,413)
                                       ======         =======       =========         =========

</TABLE>

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,  (b)  approximately  47.5% of the voting
securities  of the Company to ASC, and  pursuant to the terms of a  Shareholders
Agreement dated as of May 27, 1999 between ASC and Kojaian,  the parties,  among
other things,  agreed 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 provided
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
provided  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  agreed to 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, as of May 27, 1999,  each of ASC and Kojaian  currently  beneficially  own
approximately 95% of the voting securities of the Company.

ASC and  Kojaian  terminated  the  Shareholder's  Agreement  on August 30,  1999
pursuant to the terms of a letter agreement  regarding the purchase of JPE, Inc.
Capital  Stock.  The  member of ASC,  (Heinz C.  Prechter),  and the  members of
Kojaian, (Mike Kojaian, C. Michael Kojaian), entered into a letter put agreement
dated May 27, 1999 (the "Put Agreement").  The Put Agreement provides that it is
contemplated that following the consummation of the Investment Transaction,  all
of DOTT 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 Put Agreement, each
of Mike  Kojaian  and C.  Michael  Kojaian  had 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 Transaction (plus interest)
if the DOTT  Acquisition  was not  consummated  on or before  June 30, 1999 (the
"Put").  Either Mike Kojaian or C. Michael Kojaian had the right to exercise the
Put from any time  beginning  on June 30, 1999 and ending on the  thirtieth  day
following  June 30, 1999. The Put Agreement was amended and restated on July 27,
1999 to extend the exercise  date from July 30, 1999 to September  15, 1999.  On
August 30,  1999 Mike  Kojaian  and C.  Michael  Kojaian  and Heinz C.  Prechter
entered into a letter  agreement  regarding  the purchase of JPE,  Inc.  Capital
Stock (the "Agreement"),  pursuant to which Heinz C. Prechter agreed to purchase
4,720,710  common shares and 976,176.095  First Series  Preferred  Shares of the
Company from Kojaian for the purchase price paid by Kojaian under the Investment
Transaction  (without  interest).  The  Agreement  is subject to the  consent of
Comerica Bank, the Company's lender,  which consent is reasonably expected to be
forthcoming  no later than the end of  November,  1999.  Assuming the consent of
Comerica Bank,  upon  consummation  of the Agreement,  ASC directly and Heinz C.
Prechter,  indirectly  through ASC, will own a total of 9,441,420  common shares
and  1,952,352.19  First Series  Preferred  Shares of the Company,  constituting
approximately  95% of the  beneficial  interests of the Company.  The  Agreement
supersedes all previous agreements between the parties regarding the purchase of
such capital stock,  including the Put Agreement  dated May 27, 1999, as amended
on July 27,  1999.  In  addition,  the  Agreement  terminated  the  Shareholders
Agreement dated as of May 27, 1999 between ASC and Kojaian.

In accounting for the transactions under the Investment  Agreement,  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,  which has been adjusted  during the quarter
ended September 30, 1999 to $1.8 million to reflect payment of additional  legal
fees and  elimination  of certain  accruals  for  estimated  expenses  as of the
closing  date,  May 27,  1999.  In addition,  net  earnings for the  Predecessor
Company for the period  January,  through May 27,  1999 has been  restated  from
$20,877 thousand to $21,422 thousand to reflect these adjustments.

Accordingly,  the consolidated financial statements for periods prior to May 27,
1999 are not necessarily  comparable to the  consolidated  financial  statements
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 sets 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's OEM customers;  (iv) the availability of funds
to the Company to continue operations and provide for capital expenditures,  and
(v) general economic conditions, such as recession, inflation or rising interest
rates  directly  or  indirectly  affecting  the  demand  for  OEM  products  and
aftermarket customers.

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 have been
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  September 30, 1999 compared to Three Months Ended  September
30, 1998

ASCET INC operating  locations,  net sales for the quarter  ended  September 30,
1999 and 1998 were as follows (in thousands):

                                        1999                    1998
                                        ----                    ----

Trim Products                        $23,707                 $14,502
Replacement Parts                     14,298                  16,994
                                     -------                 -------

Total                                $38,005                 $31,496
                                     =======                 =======

The increase of sales in the Trim Segment of 63.5% is attributable to additional
sales of new  programs  starting in the second half of 1998.  The sales for Trim
Segment in 1998 were  negatively  impacted  by $6.5  million  for a strike at GM
which began in June,  1998 and ended in August 1998.  The sales  decrease in the
Replacement  Part Segment of 15.9% 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  September  30,  1998,  sales by entities  that were
divested, by segment, were the following (in thousands):

Trim Products                        $ 4,359
Fasteners (Discontinued Operations)    8,703
Replacement Parts                      4,591
                                     -------

Total                                $17,653

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

Gross  profit  was  $6,822  thousand,  or 18% of sales,  for the  quarter  ended
September 30, 1999 compared to $3,637 thousand,  or 11.5% of sales, for the same
quarter last year for the same operating  locations on a consolidated basis. The
gross profit (loss) by segment is as follows (in thousands):

                                        1999                    1998
                                        ----                    ----

Trim Products                        $ 2,953                 $  (826)
Replacement Parts                      3,869                   4,463
                                     -------                 -------

Total                                $ 6,822                 $ 3,637
                                     =======                 =======

The gross profit (loss)  percentage  for the Trim Product  Segment was 12.5% and
(5.7)% for the quarters  ended  September 30, 1999 and 1998,  respectively.  The
increase in the gross  profit  percentage  was  attributable  to a customer  mix
change at Starboard,  lower scrap rates at PTI and the effect that the GM strike
in 1998 had on absorbing fixed overhead.

The gross profit as  percentage  of sales for the  Replacement  Parts Segment is
27.1%, compared to 26.3% for the three months ended September 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.

Selling,  general  and  administrative  (SGA)  expenses  for the  quarter  ended
September  30,  1999 were $5,009  thousand or 13.2% of sales  compared to $6,543
thousand or 20.8% of sales for the quarter  ended  September  30, 1999,  for the
same operating locations on a consolidated basis.

ASCET Inc. SGA  expenses,  for the same  operating  locations on a  consolidated
basis,  for the quarter ended  September 30, 1999 and September 30, 1998 were as
follows (in thousands):

                                       1999                    1998
                                       ----                    ----

Trim Products                        $1,581                  $2,914
Replacement Parts                     2,552                   3,058
Corporate                               876                     571
                                     ------                  ------

Total                                $5,009                  $6,543
                                     ======                  ======

SGA expense for the Trim Products  Segment was $1,581  thousand or 6.7% of sales
and $2,914  thousand or 20.1% of sales for quarters ended September 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.
Additionally,  1998 SGA cost  for the  period  included  an  unusual  receivable
write-off of $1,506.  The  Replacement  Parts Segment's SGA expenses were $2,552
thousand  or 17.8% of sales and $3,058  thousand or 18.0% of sales for the three
months ended September 30, 1999 and 1998, respectively. In the Replacement Parts
Segment, management has been reducing its SGA costs, primarily through headcount
reductions and lower administrative  costs.  Corporate  administrative costs for
the three months ended  September 30, 1999 and 1998 were $876 and $571 thousand,
respectively.

Other  income  for the  quarter  ended  September  30,  1999  includes a gain on
settlement of a vendor dispute related to the company's  aftermarket  operations
and an  insurance  refund.  Other  income  (loss)  for the  three  months  ended
September 30, 1998 related to costs  associated with the bankruptcy  proceedings
and JPE's professional costs related to the Investment Transaction.

The charge for subsidiaries  under court ordered protection for the three months
ended  September  30, 1998 totaled  $26.6  million.  This charge  related to the
impairment of long-term assets in PTI, Starboard, and JPEC as shown in Note D to
the  financial  statements.  The Company  believes  that the charge  reduces the
assets of such  businesses to net realizable  value in accordance with generally
accepted accounting principals.  This charge has no impact on the Company's cash
flow.

On October 28, 1998,  the Company  completed the sale of  substantially  all the
assets of its subsidiary, Allparts, Inc. The sales price was approximately $11.6
million,  consisting of cash of $10.1 million and assumption of accounts payable
and accrued liabilities. The assets on October 28, 1998 were approximately $16.6
million and expenses related to this  transaction were $242,000,  resulting in a
net  loss on the sale of $5.2  million.  The  Company  recognized  this  loss in
September,  1998 by  writing-down  goodwill and fixed assets by $4.6 million and
$645,000 thousand, respectively. The net cash proceeds after payment of expenses
were used to reduce debt.

The  interest  expense for the three months  ended  September  30, 1999 was $1.2
million. This compares with interest expense for the quarter ended September 30,
1998 of $3.27  million.  The lower interest is primarily due to the divesture of
businesses  since  the  second  quarter  of  1998  and the  forgiveness  of bank
indebtedness.  In addition,  the  interest  rate in 1998 was  approximately  11%
compared to the approximate ASCET INC current average rate of 8.49%.

The  effective  tax rate for ASCET INC is 37.2% for the period  May 28,  through
September  30, 1999.  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 reserve. 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.

Earnings  per share  methodology  is  described  under  Note L of the  Unaudited
Consolidated  Condensed Financial Statements.  The common shares outstanding for
the  Predecessor  Company were  4,602,180 for the period January 1, 1999 through
May 27, 1999 and the same for the quarter ended  September 30, 1998.  The common
shares  outstanding for ASCET INC were 14,043,600 and the First Series Preferred
Shares were 1,973,002 for the period May 28, 1999 to September 30, 1999.

Nine Months Ended September 30, 1999 compared to Nine Months Ended September 30,
1998

ASCET INC operating locations, net sales for the nine months ended September 30,
1999 and 1998, were as follows (in thousands):

                                         1999                    1998
                                         ----                    ----

Trim Products                        $ 76,468                $ 63,200
Replacement Parts                      43,380                  56,695
                                      -------                 -------

Total                                $119,848                $119,895
                                     ========                ========

The increase in Trim Products Segment sales is primarily attributable to the new
sales  programs for Starboard 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 nine months ended  September  30, 1999 and 1998,  sales by entities  that
were divested by segment were the following (in thousands):

                                        1999                    1998
                                        ----                    ----

Trim Products                        $ 4,066                 $26,848
Fasteners (Discontinued operations)   10,024                  28,757
Replacement Parts                         --                  14,034
                                     -------                 -------

Total                                $14,090                 $69,639
                                     =======                 =======

Gross profit was $21,919 thousand,  or 18.3% of sales, for the nine months ended
September 30, 1999 compared to $16,106 thousand, or 13.4% of sales, 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):

                                        1999                    1998
                                        ----                    ----

Trim Products                        $10,599                 $ 2,629
Replacement Parts                     11,320                  13,477
                                     -------                 -------

Total                                $21,919                 $16,106
                                     =======                 =======

The gross  profit  percentage  as a  percentage  of sales  for the Trim  Product
Segment was 13.9% compared to 4.2% for the nine months ended  September 30, 1999
and  1998,  respectively.  The  increase  in the  gross  profit  percentage  was
attributable to a customer mix change at Starboard, lower scrap rates at PTI and
the effect that the GM strike in 1998 had on absorbing fixed overhead.

The gross profit as a percentage of sales for the Replacement  Parts Segment was
26.1%,  compared to 23.8% for the nine months ended September 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 better
product mix throughout the segment's other product line.

SGA  expenses,  for the same  operating  location on a  consolidated  basis were
$14,832 thousand, or 12.4% of sales and $17,679 thousand, or 14.7% of sales, for
the nine months ended September 30, 1999 and 1998, respectively.

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


                                        1999                    1998
                                        ----                    ----

Trim Products                        $ 4,577                 $ 5,847
Replacement Parts                      8,310                   9,416
Corporate Expense                      1,945                   2,416
                                      ------                 -------
Total                                $14,832                 $17,629
                                     =======                 =======


SGA expense for the Trim Products Segment were $4,577 thousand, or 6.0% of sales
for the nine months ended  September  30, 1999 compared to $5,847  thousand,  or
9.3% of sales for the nine months ended September 30, 1998. The lower percentage
is  attributable  to higher sales  volume as SGA costs are primary  fixed costs.
Additionally,  SGA  expenses  for the 1998  period  include an unusual  accounts
receivable  write-off  of  approximately  $1.5  million.  SGA  expenses  for the
Replacement  Parts Segment were $8,310 thousand,  or 19.2% of sales for the nine
months ended September 30, 1999 compared to $9,416  thousand,  or 16.6% of sales
for the same  period in 1998.  This  segment  has been  reducing  its SGA costs,
primarily through the headcount reductions and lower  administrative  costs. The
higher  percentage is due to lower sales volumes  explained in the discussion of
three months operating  results above.  Corporate  Administrative  expenses were
$1,945  thousand,  or 1.6% of sales and $2,416 thousand or 2.0% of sales for the
nine months ended September 30, 1999 and 1998, respectively.

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

Affiliate  companies'  income for the  Predecessor  Company  for January 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  Starboard  in the  amount of $3.8  million  and the
elimination  JPEC unpaid  liabilities  of $2.9  million  through its  bankruptcy
proceedings.  The results of  operations  included in this caption are discussed
above in paragraphs of sales, gross profit and SGA expense.

The interest  expense for the nine months ended September 30, 1999 including the
amounts reflected in the caption "Affiliate  companies income", was $5.6 million
as compared to $10.6 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 income from  continuing  operations for the nine months ended  September 30,
1999 is  divided  into two  periods,  the  Predecessor  Company  January 1, 1999
through May 27, 1999 of $5.4 million and ASCET INC, the Successor  Company,  for
the  period  May 28,  1999  through  September  30,  1999 of $1.1  million.  The
application of purchase  accounting  results in improvement in operating results
of approximately $55 thousand a month for the Successor Company,  as compared to
the accounting for the Predecessor Company.

The discontinued  operation included in the nine months ended September 30, 1999
is the result of the sale of the  Fastener  segment.  The  measurement  date was
February  5,  1999,  as a 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 nine months results for September 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 common
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 of  approximately  $.01. The First Series  Preferred  Share
computation is based on 1,973,002 shares and results in basic earnings per First
Series Preferred Share from continuing operations and before extraordinary items
of $.24 and $.47 for the  three  months  ended  September  30,  1999 and for the
period May 28,  through  September 30, 1999,  respectively.  Comparison to basic
loss per share for the nine months ended  September  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  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
cash deposits,  trade receivables,  inventory, and personal property, as well as
guaranties  from ASC  Holdings  LLC and  Kojaian  Holdings  LLC.  The  source of
collateral  for each is the common shares and  preferred  shares of stock of the
Company held by the respective shareholders.

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
Comerica  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 Comerica
Facility.

Amounts drawn under these loans as of May 27, 1999 were $51.7  million.  Current
borrowings at September 30, 1999 under the Comerica Facility are $45 million. At
September 30, 1999,  unused  borrowing  capacity under the Company's $30 million
demand note was $4.6  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.  In addition,  the Company is able to supplement
any working  capital needs not satisfied by the Comerica  Facility  through a $3
million subordinated demand note dated August 23, 1999 from ASC Incorporated, an
affiliate of ASC.  Advances are permitted up to $3 million and are unsecured and
subordinate to advances made under the Comerica  Facility.  Interest  accrues at
prime plus 1 1/2% and is payable quarterly.  As of September 30, 1999 there were
no advances made under this note.

Due to  their  demand  nature,  all of  the  notes  described  above  have  been
classified as short-term  debt on the Company's  balance sheet.  As of September
30, 1999, in measuring working capital, the Company's Current Liabilities exceed
Current  Assets by $10  million.  Excluding  the  amount  outstanding  under the
Comerica  Facility,  working  capital at September  30, 1999 would have been $35
million.

Year 2000

The Company has completed all Year 2000 readiness plans for all locations.

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  manufacturing  compliance  issues should not  significantly
affect  operations.  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  its  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  information
systems.  Full  testing  and  implementation  for  both of these  locations  was
completed  during the third quarter of 1999.  Total cost to the Company for this
initiative was approximately $200 thousand.

Both, Plastic Trim, Inc. and Starboard  Industries,  Inc. purchased  replacement
information 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 its OEM customer task force. Questionnaires have
been mailed and a contingency  plan to address vendor supply  interruptions  has
been  completed.   Year  2000  implementation   costs  to  the  Company  totaled
approximately $400 thousand .

Starboard Industries, Inc. purchased replacement information 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 information systems which are date sensitive systems are Year 2000
compliant.   A  vendor  contingency  plan  has  been  developed  which  included
soliciting key vendors for their Year 2000 readiness plans.

Plastic Tim, Inc., Starboard Industries,  Inc., and Dayton Parts, Inc. initiated
formal  communications  with  all  of  their  significant  suppliers  and  large
customers  to  determine  the extent to which they are  vulnerable  to potential
third parties' failures to remediate their own Year 2000 Issues. Though it is in
the  interest of the Company to use this  information  to mitigate  these risks,
because of the complexity of this issue, the Company can give no guaranties that
the  systems of other  companies  on which the  Company's  systems  rely will be
remedied for the Year 2000 Issue on time or that a failure to remedy the problem
by another company would not have a material adverse effect on the Company.



<PAGE>


                                           PART II.   OTHER INFORMATION

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


Item 6.  Exhibits and Reports on Form 8-K

          a.    Exhibits:

                10.1  Amended and Restated Termination  Agreement and Release of
                      All Liability,  dated as of May 27, 1999,  between Richard
                      Eidswick and Registrant, filed with this report.

                10.2  Shareholders Representative Agreement, dated as of May 27,
                      1999,  between Richard P. Eidswick and  Registrant,  filed
                      with this report.

                10.3  Letter  Agreement,  dated  August  30,  1999,  among  Mike
                      Kojaian,  C. Michael Kojaian,  Kojaian Holdings LLC, Heinz
                      C.  Prechter and Prechter  Holdings  LLC,  filed with this
                      report.

                27    Financial Data Schedule, which is submitted electronically
                      to the Securities and Exchange Commission for information
                      only and not filed.

          b.    Report on Form 8-K:

                On July 13,  1999,  Registrant  filed a report  on Form 8-K,
                reporting a management change.

                On August 6, 1999,  Registrant  filed a Amendment No. 1
                to Form 8-K containing  financial statements relating to the
                changes in control of Registrant.



<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:  November 15, 1999