Dana Corporation Announces Consolidation of Off-Highway Axle and Transmission Production

Dec 20, 2004

    TOLEDO, Ohio, Dec. 20 /PRNewswire-FirstCall/ -- Dana Corporation
(NYSE: DCN) today announced that it will consolidate the manufacturing of its
off-highway transmissions and axles.  This consolidation will result in the
closure of Dana's Statesville, N.C., facility, a work force reduction in
Brugge, Belgium, and the realignment of machining and assembly operations in
North America and Europe.
    (Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
    The consolidation and related transfer of production assets are expected
to be completed by December 2005.  Production in Statesville is scheduled to
end in September.  These actions will eliminate approximately 300 jobs and
result in an after-tax charge of approximately $25 million, of which
$22 million will be recorded in the fourth quarter of 2004.
    Outplacement training and separation benefits will be provided to the
affected employees.  Additionally, these people will be kept informed of
openings at other Dana facilities.
    "The decision to consolidate manufacturing was necessary to strengthen the
competitiveness of this business long term," said Nick Cole, president of
Dana's Heavy Vehicle Technologies and Systems Group.  "We're committed to
sustaining and growing our leadership position among off-highway vehicle
    "Dana is also committed to helping the people affected by this
consolidation in their transition to new employment.  These people have served
Dana and our customers well for many years, and they deserve our thanks and
our support," added Cole.
    Dana Corporation is a global leader in the design, engineering, and
manufacture of value-added products and systems for automotive, commercial,
and off-highway vehicles. Delivering on a century of innovation, the company
employs approximately 45,000 people worldwide dedicated to advancing the
science of mobility. Founded in 1904 and based in Toledo, Ohio, Dana operates
technology, manufacturing, and customer-service facilities in 30 countries.
Sales from continuing operations totaled $7.9 billion in 2003.

    Forward-Looking Statements
    Certain statements contained in this release constitute "forward-looking"
statements within the meaning of the Private Securities Litigation Reform Act
of 1995.  These statements represent Dana's expectations based on our current
information and assumptions.  Forward-looking statements are inherently
subject to risks and uncertainties.  Dana's actual results could differ
materially from those that are anticipated or projected due to a number of
factors.  These factors include our ability to complete the off-highway
manufacturing consolidation as contemplated, and other factors set out in our
public filings with the Securities and Exchange Commission.  Dana does not
undertake to update any forward-looking statements in this release.

SOURCE Dana Corporation

Web Site: http://www.dana.com

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