Dana Corporation Plans To Form Joint Venture With Dong Feng To Develop, Produce Medium And Heavy Vehicle Axles In China
Oct 1, 2003
Agreement Would Create China's Largest Commercial-Vehicle Axle Company TOLEDO, Ohio, Oct. 1 /PRNewswire-FirstCall/ -- Dana Corporation (NYSE: DCN) announced today that it has signed a formal letter of intent to form a 50/50 joint-venture company with one of China's largest commercial- vehicle axle manufacturers, Dongfeng Motor Co., Ltd. (Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA ) The planned joint venture will manufacture and assemble commercial-vehicle axles and components in China. In addition, it will have a research and technical center for manufacturing, materials, and systems development for medium- and heavy-duty axle products. Nick Cole, president of Dana's Heavy Vehicle Technologies and Systems Group, said, "When this joint venture is completed, we will have established the largest commercial-vehicle axle and component manufacturing company in China. With our technology and commercial-axle expertise, the joint-venture company will become a world-class, globally competitive supplier of medium and heavy axles for both Dongfeng Motor Co., Ltd., and Dana. "In addition, the new company will serve as a key component-manufacturing base for Dana's global heavy-vehicle assembly operations, enabling us to provide the highest-quality, most cost-competitive components and systems anywhere in the world." Ouyang Jie, president of the Components Group of Dongfeng Motor Co., Ltd., said, "We strongly support this strategic venture knowing that both companies will gain the critical mass in scale and technology in Asia to support our customer base. We believe this is an excellent opportunity not only for Dong Feng and Dana, but also for China." "This transaction is another decisive step toward expansion of Dana into the growing Asian commercial vehicle market," Mr. Cole added. "Partnering with Dong Feng will enable the joint venture to develop and manufacture state- of-the-market components and systems at a much faster pace in order to better serve our customers. We expect the global commercial-vehicle markets to grow significantly in the next few years -- especially in China, which has a growing transportation infrastructure. "In the long run, complete systems and modules will be part of our joint goal as we accelerate into the future," he added. "Both companies have the desire to expand this initial venture to include other Dong Feng and Dana components, as we will have the best of both worlds in technology and manufacturing." Completion of the joint venture is subject to board approval by both companies, customary governmental approvals, and execution of a definitive agreement. Dongfeng Motor Co., Ltd., of Xiangfan, China, is one of the largest commercial-vehicle manufacturers in China, producing a broad range of medium- and heavy-duty trucks and buses. Dana's Heavy Vehicle Technologies and Systems Group designs, manufactures, and markets front-steer, rear-drive, trailer, and auxiliary axles; driveshafts; steering shafts; brakes; suspensions; and related systems, modules, and services for the global commercial-vehicle market. Dana Corporation is a global leader in the design, engineering, and manufacture of value-added products and systems for automotive, commercial, and off-highway vehicle manufacturers and their related aftermarkets. The company employs approximately 60,000 people worldwide. Founded in 1904 and based in Toledo, Ohio, Dana operates hundreds of technology, manufacturing, and customer service facilities in 30 countries. The company reported sales of $9.5 billion in 2002.
SOURCE Dana Corporation
Web Site: http://www.dana.com
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