Complexity Offers New Challenges To Vehicle Industry Relationships, Dana Chairman Says

    DETROIT, Jan. 23 /PRNewswire/ -- Relationships among vehicle manufacturers
and between suppliers and manufacturers are more complex than they once were,
Dana Chairman Southwood J. Morcott told an audience of industry leaders today.
    Even in the face of that complexity, successful business relationships
should be based on trust, respect, and commitment, he added.  Suppliers are
most likely to offer new ideas and technology to customers who establish a
relationship of trust with companies that sell to them.
    Morcott was the speaker at the annual Society of Automotive Engineers
(SAE) Executive Breakfast, leading up to next month's SAE International
Congress and Exhibition, February 24-27 at Cobo Center in Detroit.
    "We're looking for the customer who respects our quality, global
capabilities and competitive costs," he said.  "A supplier probably wouldn't
offer a great new product to a company that only worries about price and is
slow to react.  And you're certainly not going to offer a proprietary idea to
someone who will give it to competitors."
    Globalization of the vehicle industry has led to complicated
interrelationships, Morcott explained.
    "The globe is every manufacturer's territory," he said.  "The person who
is your competitor in one country may be your partner or your customer in
another.  Joint ventures and other partnerships are occurring at a rapid
pace."
    Dana is a good example, Morcott said.  It acquired or announced plans to
acquire a dozen companies in 1996, 10 of them outside the U.S.  Two of the
pending acquisitions, Clark Hurth (purchased from Ingersoll Rand) and Sealed
Power (purchased from SPX) have global operations in their own right.  Both of
those acquisitions are awaiting customary regulatory approval.  In recent
years, Dana also established a number of international joint ventures and
partnerships and acquired equity interests in overseas operations.
    "The vehicle industry is changing," he added.  "We're a lot more efficient
and effective than we used to be.  We are more sensitive to the needs of the
ultimate customer, and we can bring new products forward more quickly.  And
the products we are turning out are way ahead of anything we even used to
dream of.  In today's world, no company in the automobile industry survives
and prospers on its own resources -- not even its own engineering.  Working in
harmony, we are participating in -- and can continue to participate in - one
of the greatest industries in the world."
    Dana Corporation is a global leader in the engineering, manufacturing and
distribution of products and systems for the vehicular, industrial and mobile
off-highway markets.  Founded in 1904 and based in Toledo, Ohio, Dana operates
facilities in 29 countries with more than 45,000 people.  Its 1995 sales were
$7.6 billion.  Dana is noted for its style of management and its commitment to
innovation.  It has 40 product research and development facilities worldwide.
The internet address for Dana's home page is http://www.dana.com.

SOURCE  Dana Corporation

CONTACT: Gary Corrigan, Director-Corporate Communications, of Dana
Corporation, 419-535-4813