<< [Back to News Releases]

Printable Version

SHANGHAI, China – July 9, 2007 – Dana Corporation (OTCBB: DCNAQ) announced today that effective June 30, 2007, Dana's wholly owned subsidiary Dana Mauritius Limited (Dana Mauritius) has closed on the purchase of 4% of the registered capital of Dongfeng Dana Axle Co., Ltd. (a Chinese commercial vehicle axle manufacturer formerly known as Dongfeng Axle Co., Ltd.) from Dongfeng Motor Co., Ltd. and certain of its affiliates under a Sale and Purchase Agreement, as amended, among the parties that has been reported previously.

Dana Mauritius paid approximately $5 million for this equity interest.

Under the Sale and Purchase Agreement, as amended, Dana Mauritius has agreed, subject to certain conditions, to purchase an additional 46% equity interest in Dongfeng Dana Axle Co., Ltd. within the next three years for approximately $55 million.

Dana Mauritius will invest in an existing Dongfeng subsidiary, which is China’s largest commercial vehicle axle manufacturer, to form Dongfeng Dana Axle. Headquartered in Xiangfan, China, the joint-venture company will employ approximately 8,000 employees in three production facilities in Xiangfan and Shiyan, as well as a research and development center that will be established. The technical center will support Dongfeng Dana Axle’s commitment to providing its customers with world-class manufacturing processes and axle components and systems.

“We are very pleased to complete this transaction with Dongfeng,” said Frank Sheehan, vice president of sales, marketing and product planning for Dana’s Heavy Vehicle Products group. “This joint venture is a big step forward in achieving Dana’s aggressive Asia Pacific growth strategy.”

Dana has seven other joint ventures in the Asia-Pacific region, including two in China. With more than 4,300 employees in 18 facilities in the region, Dana produces axles, propshafts, structures, and sealing and thermal-management products for a host of light- and heavy-vehicle manufacturers.

About Dongfeng Motor Co. Ltd.
Dongfeng Motor Co. Ltd. is a joint venture between the state-owned Dongfeng Motor Group Company Ltd. and a Chinese subsidiary of Nissan Motors. Dongfeng Motor Group was founded in 1969 and with its affiliates ranks as one of the three largest vehicle makers in China. Dongfeng Motor Co. Limited produces a broad range of light-, medium-, and heavy-duty trucks, as well as buses and passenger cars.

About Dana Corporation
Dana is a world leader in the supply of axles; driveshafts; and structural, sealing, and thermal management products; as well as genuine service parts. The company’s customer base includes virtually every major vehicle and engine manufacturer in the global automotive, commercial vehicle, and off-highway markets, which collectively produce more than 65 million vehicles annually. Based in Toledo, Ohio, the company’s continuing operations employ approximately 35,000 people in 28 countries and reported 2006 sales of $8.5 billion, with more than half of this revenue derived from outside the United States. For more information, please visit: www.dana.com.

Dana and certain of its U.S. subsidiaries are operating under Chapter 11 of the U.S. Bankruptcy Code as debtors in possession. Information about the bankruptcy proceedings can be found at: http://www.dana.com/reorganization. While Dana continues its reorganization under Chapter 11, investments in its securities are highly speculative. Although shares of Dana common stock continue to trade on the OTC Bulletin Board (OTCBB) under the symbol “DCNAQ,” the trading prices of the shares may have little or no relationship to the actual recovery, if any, by the holders under any eventual court-approved reorganization plan. The opportunity for any recovery by holders of Dana common stock under such reorganization plan is uncertain and shares of Dana common stock may be cancelled without any compensation pursuant to such plan.

Forward-Looking Statements
Statements in this release regarding Dana’s investment in its joint venture with Dongfeng Motor Co. Ltd. constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent Dana's expectations based on its current information and assumptions. Forward-looking statements are inherently subject to risks and uncertainties. Actual results could differ from those that are anticipated and there can be no assurance that this sale will be completed as contemplated. Dana does not undertake to update any forward-looking statements in this release.

Contact: Emily Ewing
269-567-1307
emily.ewing@dana.com