A coating composition comprising a film forming binder of a. at least one polymer that has pendant groups, such as, hydroxyl, carboxyl, glycidyl, amine, amide, silane and mixtures thereof that are reactive with a crosslinking component and the polymer has a glass transition temperature (Tg) of 10 to 80.degree. C.; b. a polytrimethylene ether diol having a Mn (number average molecular weight) of 500 to 5,000; and c. a crosslinking component, such as, organic polyisocyanates, melamine formaldehydes, alkylated melamine formaldehydes, benzoquanamine formaldehyde, urea formaldehyde, polyepoxides, silane resin and any mixtures thereof; wherein the coating composition can be used as a clear coating composition and can contain pigments and may be used as a pigmented top coating, a pigmented base coating, a primer or primer surfacer coating and is useful for coating automobile and truck bodies and parts, industrial equipment, appliances and exterior structures.